Commentary

285 Financial assistance for the acquisition of shares

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

285 Financial assistance for the acquisition of shares

| Commentary

F: ANCILLARY MATTERS

1: COMPANY LAW ISSUES

285 Financial assistance for the acquisition of shares

A public company is generally prohibited from giving financial assistance for the purpose of1:

  1. 285.1

        enabling any person to acquire shares issued, or to be issued, by that company, or by its parent company; or

  2. 285.2

        discharging any liability which a person has incurred in order to make such an acquisition.

The prohibition does not apply, however, if:

  1. 285.3

        the acquisition of shares is made in the voluntary winding up of a company as part of a scheme under which the liquidator sells its business or property in

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