Section 254L — Corporations Act 2001 (Cth)

(1) If a company redeems shares in contravention of section 254J or 254K:

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

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

(2) Any person who is involved in a company’s contravention of section 254J or 254K contravenes this subsection.

Note 1: Subsection (2) is a civil penalty provision (see section 1317E).

Note 2: Section 79 defines involved.

(3) A person commits an offence if they are involved in a company’s contravention of section 254J or 254K and the involvement is dishonest.

Related sections

• s 254H — Resolution to convert shares into larger or smaller number
• s 254J — Redemption must be in accordance with terms of issue
• s 254K — Other requirements about redemption
• s 254M — Liability on partly‑paid shares
• s 254N — Calls may be limited to when company is externally‑administered
• s 254P — No liability companies—calls on shares

Research how courts apply s 254L

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