Section 1231B — Corporations Act 2001: Consequences of making an unauthorised reduction

(1) A CCIV must not make a reduction in share capital if the reduction: (a) does not comply with subsection 1231A(1); and (b) is not otherwise authorised by law. (2) If a CCIV contravenes subsection (1): (a) the contravention does not affect the validity of the reduction or of any contract or transaction connected with it; and (b) the CCIV does not commit an offence. Fault-based offence (3) A person commits an offence if the person is involved in a CCIV’s contravention of subsection (1) and the involvement is dishonest. Civil liability (4) A person who is involved in a CCIV’s contravention of subsection (1) contravenes this subsection. Note 1: This subsection is a civil penalty provision (see section 1317E). Note 2: Section 79 defines involved.