CORPORATIONS ACT 2001 - SECT 256A Purpose

CORPORATIONS ACT 2001 - SECT 256A

    This Part states the rules to be followed by a company for reductions in share capital and for share buy - backs. The rules are designed to protect the interests of shareholders and creditors by:

  (a)   addressing the risk of these transactions leading to the company's insolvency

  (b)   seeking to ensure fairness between the company's shareholders

  (c)   requiring the company to disclose all material information.

Note:   This Division does not apply to a CCIV: see subsection   1231A(5).