Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 1231B

  (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 .