Document ID: chunk:federal_register_of_legislation:C2025C00185:section:260a
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 260A
Character Range: 924893–925960

260A  Financial assistance by a company for acquiring shares in the company or a holding company
 (1) A company may financially assist a person to acquire shares (or units of shares) in the company or a holding company of the company only if:
 (a) giving the assistance does not materially prejudice:
 (i) the interests of the company or its shareholders; or
 (ii) the company's ability to pay its creditors; or
 (b) the assistance is approved by shareholders under section 260B (that section also requires advance notice to ASIC); or
 (c) the assistance is exempted under section 260C.
Note: For the criminal liability of a person dishonestly involved in a contravention of this section, see subsection 260D(3). Section 79 defines involved.
 (2) Without limiting subsection (1), financial assistance may:
 (a) be given before or after the acquisition of shares (or units of shares); and
 (b) take the form of paying a dividend.
 (3) Subsection (1) extends to the acquisition of shares (or units of shares) by:
 (a) issue; or
 (b) transfer; or
 (c) any other means.