New South Wales Consolidated Acts

LOAN FUND COMPANIES ACT 1976 - SECT 44

44 Money from forfeited or surrendered options or shares to be transferred to a reserve

A loan fund company:

(a) shall have and maintain a reserve for the purposes of this Division and shall transfer to that reserve all money received by it with respect to options or shares forfeited or surrendered to the company under section 42 or 43, as the case may be, after deducting any part of that money that is attributable to fees or penalties, and

(b) shall not distribute any money transferred to the reserve maintained under paragraph (a) as dividends, but may use the money in the repayment of amounts under section 46 or for any purpose for which the company is, by its memorandum or articles of association, authorised to use its capital.

Maximum penalty: 5 penalty units.