Commonwealth Repealed Acts

This legislation has been repealed.

CORPORATIONS LAW- SECT 254A

Power to issue bonus, partly-paid, preference and redeemable preference shares

 
 
(1)
A company's power under section 124 to issue
shares includes the power to issue: 
 
 
 
(a)
bonus shares (shares for whose issue no consideration is
payable to the issuing company); and

(b)
preference shares (including redeemable preference shares);
and

(c)
partly-paid shares (whether or not on the same terms for the
amount of calls to be paid or the time for paying calls). 

 
 Note 1: Subsections 246C(5)
and (6) provide that in certain circumstances the issue of preference shares
is taken to be a variation of class rights.


Note 2: Partly-paid shares are dealt with in sections 254M- 254N.


Note 3: On the issue of a bonus share there need not be any increase in the
company's share capital. 


 
 
(2)
A company can issue preference shares only
if the rights attached to the preference shares with respect to the following
matters are set out in the company's constitution (if any) or have been
otherwise approved by special resolution of the company: 
 
 
 
(a)
repayment of capital

(b)
participation in surplus assets and profits

(c)
cumulative and non-cumulative dividends

(d)
voting

(e)
priority of payment of capital and dividends in relation to other
shares or classes of preference shares. 

 
 
(3)
Redeemable preference shares are
preference shares that are issued on the terms that they are liable to be
redeemed. They may be redeemable: 
 
 
 
(a)
at a fixed time or on the happening of a particular
event; or

(b)
at the company's option; or

(c)
at the shareholder's option. 

 
 Note: Redeemable preference
shares are dealt with in sections  254J - 254L.