(1) A company may financially assist a person to acquire shares (or units of shares) in the company or a holding company of the company only if:

(a)

giving the assistance does not materially prejudice:

(i)

the interests of the company or its shareholders; or

(ii)

the company's ability to pay its creditors; or

(b)

the assistance is approved by shareholders under section 260B (that section also requires advance notice to ASIC); or

(c)

the assistance is exempted under section 260C.

(2) Without limiting subsection (1), financial assistance may:

(a)

be given before or after the acquisition of shares (or units of shares); and

(b)

take the form of paying a dividend.

(3) Subsection (1) extends to the acquisition of shares (or units of shares) by:

(a)

issue; or

(b)

transfer; or

(c)

any other means.