CORPORATIONS ACT 2001 - SECT 257A The company's power to buy back its own shares
CORPORATIONS ACT 2001 - SECT 257A
The company's power to buy back its own sharesA company may buy back its own shares if:
(a) the buy - back does not materially prejudice the company's ability to pay its creditors; and
(b) the company follows the procedures laid down in this Division.
Note 1: If a company has a constitution, it may include provisions in the constitution that preclude the company buying back its own shares or impose restrictions on the exercise of the company's power to buy back its own shares.
Note 2: A company may buy - back redeemable preference shares and may
do so on terms other than the terms on which they could be redeemed. For the
redemption of redeemable preference shares, see sections 254J - 254L.