Section 256D — Corporations Act 2001: Consequences of failing to comply with section 256B

(1) The company must not make the reduction unless it complies with subsection 256B(1). (2) If the company 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 company is not guilty of an offence. (3) Any person who is involved in a company’s contravention of subsection (1) contravenes this subsection. Note 1: Subsection (3) is a civil penalty provision (see section 1317E). Note 2: Section 79 defines involved. (4) A person commits an offence if they are involved in a company’s contravention of subsection (1) and the involvement is dishonest.