Restriction on company share purchase and financial assistance - prohibited with employee and banking exceptions and penal consequences. Companies with share capital are barred from buying their own shares unless capital reduction follows this Act. Public companies may not provide financial assistance-by loan, guarantee, security or otherwise-for purchase or subscription of their shares or those of a holding company. Exceptions include ordinary-course bank lending, employee share schemes approved by special resolution and prescribed requirements, and limited loans to employees (excluding directors and KMP) to acquire fully paid shares. Redemption of existing preference shares remains unaffected. Contravention triggers penalties on the company and criminal sanctions for defaulting officers.
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Provisions expressly mentioned in the judgment/order text.
Restriction on company share purchase and financial assistance - prohibited with employee and banking exceptions and penal consequences.
Companies with share capital are barred from buying their own shares unless capital reduction follows this Act. Public companies may not provide financial assistance-by loan, guarantee, security or otherwise-for purchase or subscription of their shares or those of a holding company. Exceptions include ordinary-course bank lending, employee share schemes approved by special resolution and prescribed requirements, and limited loans to employees (excluding directors and KMP) to acquire fully paid shares. Redemption of existing preference shares remains unaffected. Contravention triggers penalties on the company and criminal sanctions for defaulting officers.
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