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(a) land is comprised in a strata plan registered under the [Strata Schemes (Freehold Development) Act 1973](/view/html/repealed/current/act-1973-068) or in a plan of a prescribed kind under a prescribed Act, and 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](/view/html/inforce/current/sl-1999-0703), 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](/view/html/inforce/current/act-1999-001). > > **s 97:** Am 1996 No 139, Sch 2.9 (am 1997 No 55, Sch 1.28 \[1\]); 1999 No 1, Sch 1 \[7\].