Section 1231J — Corporations Act 2001 (Cth)

(1) A CCIV must not acquire shares (or units of shares) in itself except:

(a) in buying back shares under section 1231C; or

(b) under a court order; or

(c) in circumstances covered by section 1230Q (about cross‑investment).

(2) Section 259A does not apply to a CCIV.

(3) Subject to subsection (1), a retail CCIV may acquire and hold a share in the CCIV, but it must only do so:

(a) for not less than the consideration that would be payable if the share were acquired by another person; and

(b) subject to terms and conditions that would not disadvantage other members.

Note: A similar limitation applies to the corporate director of a retail CCIV: see section 1224P.

(4) If a CCIV contravenes subsection (1) or (3):

(a) the contravention does not affect the validity of the acquisition or security or of any contract or transaction connected with it; and

(b) the CCIV is not guilty of an offence.

Civil liability

(5) Any person who is involved in a CCIV’s contravention of subsection (1) or (3) contravenes this subsection.

Note 1: This subsection is a civil penalty provision (see section 1317E).

Note 2: Section 79 defines involved.

Fault‑based offence

(6) A person commits an offence if they are involved in a CCIV’s contravention of subsection (1) or (3) and the involvement is dishonest.

Related sections

• s 1231F — Authorised reductions—Court orders
• s 1231G — Authorised reductions—return of financial product
• s 1231H — Other share capital reductions
• s 1231K — Taking security over own shares
• s 1231L — Part 2J.3 does not apply to a CCIV
• s 1231M — Other duties still apply

Research how courts apply s 1231J

BriefBridge searches Australian caselaw by meaning — every answer cited to the paragraph.