Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 1051

1051. (1) Where a corporation has redeemed any debentures, whether before or
after the commencement of this Part:

   (a)  unless any provision to the contrary, whether express or implied, is
        contained in the articles or in a contract entered into by the
        corporation; or

   (b)  unless the corporation has, by passing a resolution to that effect or
        by some other act, shown its intention to cancel the debentures; the
        corporation has, and shall be deemed always to have had, power to
        re-issue the debentures, either by re-issuing the same debentures or
        by issuing other debentures in their place.

(2) The re-issue of a debenture or the issue of one debenture in place of
another under this section, whether the re-issue or issue was made before or
after the commencement of this Part, shall not be regarded as the issue of a
new debenture for the purpose of any provision limiting the amount or number
of debentures that may be issued by the corporation.

(3) After the re-issue of any debentures the debentures have, and shall be
deemed always to have had, the same priorities as if the debentures had never
been redeemed.

(4) Where a corporation has, whether before or after the commencement of this
Part, deposited any of its debentures to secure advances on current account or
otherwise, the debentures shall not be taken to have been redeemed merely
because of the account of the corporation having ceased to be in debit while
the debentures remain so deposited.