Section 1231J — Corporations Act 2001: Directly acquiring own shares

(1) A CCIV must not acquire shares (or units of shares) in itself except: (a) in buying back shares under section 1231C; or (b) under a court order; or (c) in circumstances covered by section 1230Q (about cross-investment). (2) Section 259A does not apply to a CCIV. (3) Subject to subsection (1), a retail CCIV may acquire and hold a share in the CCIV, but it must only do so: (a) for not less than the consideration that would be payable if the share were acquired by another person; and (b) subject to terms and conditions that would not disadvantage other members. Note: A similar limitation applies to the corporate director of a retail CCIV: see section 1224P. (4) If a CCIV contravenes subsection (1) or (3): (a) the contravention does not affect the validity of the acquisition or security or of any contract or transaction connected with it; and (b) the CCIV is not guilty of an offence. Civil liability (5) Any person who is involved in a CCIV’s contravention of subsection (1) or (3) contravenes this subsection. Note 1: This subsection is a civil penalty provision (see section 1317E). Note 2: Section 79 defines involved. Fault-based offence (6) A person commits an offence if they are involved in a CCIV’s contravention of subsection (1) or (3) and the involvement is dishonest.