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Corporations Act 2001
256APurpose
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256A Purpose
This Part states the rules to be followed by a company for reductions in share capital and for share buy‑backs. The rules are designed to protect the interests of shareholders and creditors by: (a) addressing the risk of these transactions leading to the company’s insolvency (b) seeking to ensure fairness between the company’s shareholders (c) requiring the company to disclose all material information.