Document ID: chunk:federal_register_of_legislation:C2025C00185:section:1231b
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 1231B
Character Range: 5117775–5118597

1231B  Consequences of making an unauthorised reduction
 (1) A CCIV must not make a reduction in share capital if the reduction:
 (a) does not comply with subsection 1231A(1); and
 (b) is not otherwise authorised by law.
 (2) If a CCIV 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 CCIV does not commit an offence.

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

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