Buy‑back procedure—shareholder approval if the 10/12 limit exceeded
257C Buy‑back procedure—shareholder approval if the 10/12 limit exceeded
Ordinary resolution required
If section 257B applies this section to a buy‑back, the terms of the buy‑back agreement must be approved before it is entered into by a resolution passed at a general meeting of the company, or the agreement must be conditional on such an approval.
Information to accompany the notice of meeting
The company must include with the notice of the meeting a statement setting out all information known to the company that is material to the decision how to vote on the resolution. However, the company does not have to disclose information if it would be unreasonable to require the company to do so because the company had previously disclosed the information to its shareholders.
Documents to be lodged with the ASIC
Before the notice of the meeting is sent to shareholders, the company must lodge with ASIC a copy of:
the notice of the meeting; and
any document relating to the buy‑back that will accompany the notice of the meeting sent to shareholders.
This Act’s bill:Explanatory memorandumSecond reading speech
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