Document ID: chunk:federal_register_of_legislation:C2025C00185:section:254q:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 254Q (pt 1/3)
Character Range: 876660–879161

254Q  No liability companies—forfeiture and sale of shares for failure to meet call

Forfeiture and sale of shares
 (1) A share in a no liability company is immediately forfeited if:
 (a) a call is made on the share; and
 (b) the call is unpaid at the end of 14 days after it became payable.
Note: The holder of the share may redeem it under section 254R.
 (2) The forfeited share must then be offered for sale by public auction within 6 weeks after the call became payable.

Advertisement of sale
 (3) At least 14 days, and not more than 21 days, before the day of the sale, a notice of the sale must be published in accordance with subsection (5A). The specific number of shares to be offered need not be specified in the notice and it is sufficient for the notice to be to the effect that all shares on which a call remains unpaid will be sold.

Postponement of sale
 (4) An intended sale of forfeited shares of which a notice has been published in accordance with subsection (3) may be postponed for not more than 21 days from the date of sale specified in the notice. A notice of the date to which the sale is postponed must be published in accordance with subsection (5A).
 (5) There may be more than 1 postponement but the sale cannot be postponed to a date more than 90 days from the first date fixed for the intended sale.

Publishing notices
 (5A) A notice under subsection (3) or (4) is published in accordance with this subsection if the notice is published:
 (a) unless paragraph (b) of this subsection applies—in a manner that results in the notice being accessible to the public and reasonably prominent; or
 (b) if a determination in force under subsection (5B) specifies one or more manners in which such a notice may be published—in a manner so specified.
 (5B) For the purposes of paragraph (5A)(b), ASIC may, by legislative instrument, make a determination specifying one or more manners in which a notice under subsection (3) or (4) may be published.
 (5C) A manner of publication may be specified in the determination only if ASIC considers that the manner of publication would result in such a notice being accessible to the public and reasonably prominent.

Shares may be offered as credited to a particular amount
 (6) The share may be sold credited as paid up to the sum of:
 (a) the amount paid upon the share at the time of forfeiture; and
 (b) the amount of the call; and
 (c) the amount of any other calls becoming payable on or before the day of the sale;
if the company