Document ID: chunk:federal_register_of_legislation:C2025C00185:section:1324:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 1324 (pt 1/3)
Character Range: 5691118–5693846

1324  Injunctions
 (1) Where a person has engaged, is engaging or is proposing to engage in conduct that constituted, constitutes or would constitute:
 (a) a contravention of this Act; or
 (b) attempting to contravene this Act; or
 (c) aiding, abetting, counselling or procuring a person to contravene this Act; or
 (d) inducing or attempting to induce, whether by threats, promises or otherwise, a person to contravene this Act; or
 (e) being in any way, directly or indirectly, knowingly concerned in, or party to, the contravention by a person of this Act; or
 (f) conspiring with others to contravene this Act;
the Court may, on the application of ASIC, or of a person whose interests have been, are or would be affected by the conduct, grant an injunction, on such terms as the Court thinks appropriate, restraining the first‑mentioned person from engaging in the conduct and, if in the opinion of the Court it is desirable to do so, requiring that person to do any act or thing.
 (1A) For the purposes of subsection (1):
 (a) a contravention of this Act affects the interests of a creditor or member of a company if the insolvency of the company is an element of the contravention; and
 (b) a company's contravention of:
 (i) paragraph 257A(1)(a) (share buy‑back not to prejudice ability to pay creditors); or
 (ia) paragraph 256B(1)(b) (share capital reduction not to prejudice ability to pay creditors); or
 (ii) paragraph 260A(1)(a) (financial assistance for share acquisition not to prejudice company or shareholders or ability to pay creditors);
  affects the interests of a creditor or member of the company; and
 (c) a company's contravention of paragraph 256B(1)(a) (fair and reasonable test for share capital reduction) affects the interests of a member of the company.
This subsection does not limit subsection (1) in any way.
 (1B) If the ground relied on in an application for an injunction is conduct or proposed conduct of a company or other person that it is alleged constitutes, or would constitute:
 (a) a contravention of paragraph 256B(1)(a) or (b), section 257A or paragraph 260A(1)(a); or
 (b) a contravention of a provision of this Act involving the insolvency of the company because of:
 (i) the company making a reduction of its share capital to which Division 1 of Part 2J.1 applies; or
 (ii) the company buying back its shares; or
 (iii) the company giving financial assistance to which Part 2J.3 applies;
the Court must assume that the conduct constitutes, or would constitute, a contravention of that paragraph, section or provision unless the company or person proves otherwise.
 (2) Where a person has refused or failed, is refusing or failing, or is proposing to refuse or fail, to do an act