Section 256A — Corporations Act 2001 (Cth)

Purpose

This Part states the rules to be followed by a company for reductions in share capital and for share buy‑backs. The rules are designed to protect the interests of shareholders and creditors by:

(a) addressing the risk of these transactions leading to the company’s insolvency

(b) seeking to ensure fairness between the company’s shareholders

(c) requiring the company to disclose all material information.

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.

Related sections

s 254WA — Application of this Part to MCI mutual entities
s 254X — Notice to ASIC of share issue
s 254Y — Notice to ASIC of share cancellation
s 256B — Company may make reduction not otherwise authorised
s 256C — Shareholder approval
s 256D — Consequences of failing to comply with section 256B

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