Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 389

389. (1) The directors may, in the case of a share advertised for sale as
forfeited for non-payment of a call, fix a reserve price not exceeding the sum
of the amount of the call due and unpaid on the share at the time of
forfeiture and the amount of any other calls becoming payable on or before the
date of the sale.

(2) If a bid at least equal to the reserve price so fixed is not made for the
share, the share may be withdrawn from sale

(3) A share so withdrawn from sale or a share for which no bid is received at
the sale shall be held by the directors in trust for the company and shall be
disposed of in such manner as the company, in accordance with its articles or
by resolution, determines, but, at any meeting of the company, no person is
entitled to any vote in respect of the shares so held by the directors in
trust.

(4) Unless otherwise specifically provided by resolution, the shares to be so
disposed of shall first be offered to shareholders for a period of 14 days
before being disposed of in any other manner.