New South Wales Consolidated Acts

CORPORATIONS (NEW SOUTH WALES) ACT 1990 - SECT 97

97 Certain transfers by companies not to constitute reduction of share capital

(1) Where:

(a) land is comprised in a strata plan registered under the Strata Schemes (Freehold Development) Act 1973 or in a plan of a prescribed kind under a prescribed Act, and

(b) at the time of registration of the plan, the proprietor of that land was a company,

the transfer by the company of a lot on the strata plan (or of a prescribed unit or other entity on a plan) in exchange for or in satisfaction of a right of the kind referred to in section 195 (13) of the Corporations Law , does not of itself constitute, and is to be taken never to have constituted, a reduction of the share capital of the company.

(2) Subsection (1) does not apply to a transfer made on or after the commencement of Schedule 1 [7] to the Financial Sector Reform (New South Wales) Act 1999 .