Document ID: chunk:federal_register_of_legislation:C2025C00012:clause:1_1231j
Version: federal_register_of_legislation:C2025C00012
Segment Type: clause
Provision Reference: sch 1 cl 1231J
Character Range: 155812–157158

1231J  Directly acquiring own shares
 (1) A CCIV must not acquire shares (or units of shares) in itself except:
 (a) in buying back shares under section 1231C; or
 (b) under a court order; or
 (c) in circumstances covered by section 1230Q (about cross‑investment).
 (2) Section 259A does not apply to a CCIV.
 (3) Subject to subsection (1), a retail CCIV may acquire and hold a share in the CCIV, but it must only do so:
 (a) for not less than the consideration that would be payable if the share were acquired by another person; and
 (b) subject to terms and conditions that would not disadvantage other members.
Note: A similar limitation applies to the corporate director of a retail CCIV: see section 1224P.
 (4) If a CCIV contravenes subsection (1) or (3):
 (a) the contravention does not affect the validity of the acquisition or security or of any contract or transaction connected with it; and
 (b) the CCIV is not guilty of an offence.

Civil liability
 (5) Any person who is involved in a CCIV's contravention of subsection (1) or (3) contravenes this subsection.
Note 1: This subsection is a civil penalty provision (see section 1317E).
Note 2: Section 79 defines involved.

Fault‑based offence
 (6) A person commits an offence if they are involved in a CCIV's contravention of subsection (1) or (3) and the involvement is dishonest.