260DConsequences of failing to comply with section 260A

260D Consequences of failing to comply with section 260A

(1) If a company provides financial assistance in contravention of section 260A: (a) the contravention does not affect the validity of the financial assistance or of any contract or transaction connected with it; and (b) the company is not guilty of an offence. (2) Any person who is involved in a company’s contravention of section 260A contravenes this subsection.

Note 1: Subsection (2) is a civil penalty provision (see section 1317E).

Note 2: Section 79 defines involved.

(3) A person commits an offence if they are involved in a company’s contravention of section 260A and the involvement is dishonest.