97Certain transfers by companies not to constitute reduction of share capital

97 Certain transfers by companies not to constitute reduction of share capital

97 Certain transfers by companies not to constitute reduction of share capital

(1) Where—

(a) land is comprised in a strata plan registered under the Strata Schemes (Freehold Development) Act 1973 or in a plan of a prescribed kind under a prescribed Act, and

(b) at the time of registration of the plan, the proprietor of that land was a company,

the transfer by the company of a lot on the strata plan (or of a prescribed unit or other entity on a plan) in exchange for or in satisfaction of a right of the kind referred to in section 195 (13) of the Corporations Law, does not of itself constitute, and is to be taken never to have constituted, a reduction of the share capital of the company.

(2) Subsection (1) does not apply to a transfer made on or after the commencement of Schedule 1 [7] to the Financial Sector Reform (New South Wales) Act 1999.

s 97: Am 1996 No 139, Sch 2.9 (am 1997 No 55, Sch 1.28 [1]); 1999 No 1, Sch 1 [7].