20Limitations on members of company

### 20 Limitations on members of company > > (1)  A member of a company must not sell or otherwise dispose of the shares held by that member. > > > (2)  A member of a company must not vote at a meeting of the shareholders of the company to allow the company to – > > > > > > (a) offer shares in the company for subscription; or > > > > > > > (b) invite persons to subscribe for shares in the company; or > > > > > > > (c) allot or issue shares in the company on a basis other than to existing shareholders pro rata to their existing shareholding. > > > (3)  [*\[Section 20 Subsection (3) amended by No. 78 of 2005, s. 32, Applied:01 Jan 2008\]*](/view/html/inforce/2008-01-01/act-2005-078#GS32@Hpb@EN) [*\[Section 20 Subsection (3) amended by No. 78 of 2005, s. 32, Applied:01 Jan 2008\]*](/view/html/inforce/2008-01-01/act-2005-078#GS32@Hpa@EN) [*\[Section 20 Subsection (3) amended by No. 115 of 2001, s. 8, Applied:17 Dec 2001\]*](/view/html/inforce/2001-12-17/act-2001-115#GS8@Hpb@EN) [*\[Section 20 Subsection (3) amended by No. 115 of 2001, s. 8, Applied:17 Dec 2001\]*](/view/html/inforce/2001-12-17/act-2001-115#GS8@Hpa@EN) [*\[Section 20 Subsection (3) substituted by No. 18 of 2001, s. 5, Applied:26 Apr 2001\]*](/view/html/inforce/2001-04-26/act-2001-018#GS5@EN) A member of a company must not vote at a meeting of the shareholders of the company to allow the company to sell or otherwise dispose of a transmission system situated in Tasmania or a distribution network situated in Tasmania or any part of such a transmission system or distribution network that would have the result of significantly reducing the capacity of the network. > > > (4)  [*\[Section 20 Subsection (4) amended by No. 20 of 2025, s. 5, Applied:27 Nov 2025\]*](/view/html/inforce/2025-11-27/act-2025-020#GS5@EN) [*\[Section 20 Subsection (4) omitted by No. 18 of 2001, s. 5, Applied:26 Apr 2001\]*](/view/html/inforce/2001-04-26/act-2001-018#GS5@EN) [*\[Section 20 Subsection (4) inserted by No. 115 of 2001, s. 8, Applied:17 Dec 2001\]*](/view/html/inforce/2001-12-17/act-2001-115#GS8@Hpc@EN) An Act that purports to repeal or amend this section is of no effect unless the proposal for the repeal or amendment has been approved by a majority of the electors voting in a referendum held under the [Referendum Procedures Act 2004](/view/html/inforce/2026-04-12/act-2004-052) . > > > (5)  [*\[Section 20 Subsection (5) inserted by No. 115 of 2001, s. 8, Applied:17 Dec 2001\]*](/view/html/inforce/2001-12-17/act-2001-115#GS8@Hpc@EN) [Subsection (4)](#GS20@Gs4@EN) does not apply to an Act that – > > > > > > (a) repeals this section if the Act enacts a provision substantially similar to this section; or > > > > > > > (b) amends this section if the amendments enacted do not lessen a majority required by [subsection (4)](#GS20@Gs4@EN) or otherwise substantially alter the effect of this section.