Consequences of making an unauthorised reduction
(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.
Sourced from the Federal Register of Legislation at 17 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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