CORPORATIONS ACT 2001 - SECT 256D Consequences of failing to comply with section 256B

CORPORATIONS ACT 2001 - SECT 256D

  (1)   The company must not make the reduction unless it complies with subsection   256B(1).

  (2)   If the company contravenes subsection   (1):

  (a)   the contravention does not affect the validity of the reduction or of any contract or transaction connected with it; and

  (b)   the company is not guilty of an offence.

  (3)   Any person who is involved in a company's contravention of subsection   (1) contravenes this subsection.

Note 1:   Subsection   (3) is a civil penalty provision (see section   1317E).

Note 2:   Section   79 defines involved .

  (4)   A person commits an offence if they are involved in a company's contravention of subsection   (1) and the involvement is dishonest.