Document ID: chunk:federal_register_of_legislation:C2025C00185:section:256a
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 256A
Character Range: 889527–890096

256A  Purpose
  This Part states the rules to be followed by a company for reductions in share capital and for share buy‑backs. The rules are designed to protect the interests of shareholders and creditors by:
 (a) addressing the risk of these transactions leading to the company's insolvency
 (b) seeking to ensure fairness between the company's shareholders
 (c) requiring the company to disclose all material information.

Division 1—Reductions in share capital not otherwise authorised by law
Note: This Division does not apply to a CCIV: see subsection 1231A(5).