Corporations Act 2001
Act No. 50 of 2001 as amended
VOLUME 1 includes: Chapters 1–2K (ss. 1 – 282)
This compilation was prepared on
taking into account amendments up to Act No. 8 of 2005
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
VOLUME 2 includes: Chapters 2L–5B (ss. 283AA – 601DJ)
VOLUME 3 includes: Chapters 5C–6D (ss. 601EA – 742)
VOLUME 4 includes: Chapter 7 (ss. 760A – 1101J)
VOLUME 5 includes: Chapters 9 and 10 (ss. 1274 – 1471)
Schedules 3 and 4
Table of Acts
Act Notes
Table of Amendments
Endnotes
Table A
Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department,
Contents
Chapter 1—Introductory 11
Part 1.1—Preliminary 11
1............ Short title see Note 1]..................................................................... 11
2............ Commencement [see Note 1]............................................................ 11
3............ Constitutional basis for this Act...................................................... 11
4............ Referring States................................................................................. 11
5............ General territorial application of Act............................................... 11
5A......... Application to the Crown................................................................ 11
5B......... ASIC has general administration of this Act.................................... 11
5C......... Application of the Acts Interpretation Act 1901............................... 11
Part 1.1A—Interaction between Corporations legislation and State and Territory laws 11
5D......... Coverage of Part............................................................................... 11
5E.......... Concurrent operation intended......................................................... 11
5F.......... Corporations legislation does not apply to matters declared by State or Territory law to be an excluded matter 11
5G......... Avoiding direct inconsistency arising between the Corporations legislation and State and Territory laws 11
5H......... Registration of body as company on basis of State or Territory law 11
5I........... Regulations may modify operation of the Corporations legislation to deal with interaction between that legislation and State and Territory laws................................................................... 11
Part 1.2—Interpretation 11
Division 1—General 11
6............ Effect of this Part............................................................................. 11
7............ Location of other interpretation provisions..................................... 11
9............ Dictionary......................................................................................... 11
Division 2—Associates 11
10.......... Effect of Division............................................................................. 11
11.......... Associates of bodies corporate......................................................... 11
12.......... References in Chapters 6 to 6C, and other references relating to voting power and takeovers etc. 11
13.......... References in Chapter 7.................................................................... 11
15.......... General.............................................................................................. 11
16.......... Exclusions......................................................................................... 11
17.......... Associates of composite person that carries on a financial services business 11
Division 3—Carrying on business 11
18.......... Carrying on business: otherwise than for profit............................... 11
19.......... Businesses of a particular kind......................................................... 11
20.......... Carrying on a business: alone or together with others...................... 11
21.......... Carrying on business in Australia or a State or Territory................ 11
Division 5A—Types of company 11
45A....... Proprietary companies..................................................................... 11
Division 6—Subsidiaries and related bodies corporate 11
46.......... What is a subsidiary......................................................................... 11
47.......... Control of a body corporate’s board................................................ 11
48.......... Matters to be disregarded................................................................. 11
49.......... References in this Division to a subsidiary...................................... 11
50.......... Related bodies corporate.................................................................. 11
50AAA. Associated entities............................................................................ 11
50AA.... Control.............................................................................................. 11
Division 7—Interpretation of other expressions 11
52.......... Doing acts......................................................................................... 11
52A....... Signing............................................................................................... 11
53.......... Affairs of a body corporate.............................................................. 11
53AA.... Business affairs of a body corporate................................................ 11
53AB.... Business affairs of a natural person.................................................. 11
53AC.... Business affairs of a partnership...................................................... 11
53AD.... Business affairs of a trust................................................................. 11
57.......... Classes of shares or interests in managed investment schemes........ 11
57A....... Meaning of corporation.................................................................... 11
58AA.... Meaning of court and Court............................................................. 11
58B....... Discharge of obligations under this Act............................................ 11
59.......... Debentures as consideration for acquisition of shares...................... 11
64.......... Entering into a transaction in relation to shares or securities........... 11
64A....... Entities.............................................................................................. 11
64B....... Entities connected with a corporation.............................................. 11
65.......... Eligible money market dealer............................................................ 11
66A....... Exempt bodies.................................................................................. 11
70.......... Extension of period for doing an act................................................. 11
73A....... When a court is taken to find a person guilty of an offence............. 11
75.......... Inclusion in official list..................................................................... 11
79.......... Involvement in contraventions......................................................... 11
80.......... Jervis Bay Territory taken to be part of the Australian Capital Territory 11
82.......... Offers and invitations to the public.................................................. 11
83.......... Officers, and other persons, in default............................................. 11
86.......... Possession........................................................................................ 11
88A....... Public document of a body corporate............................................... 11
88B....... Qualified accountants....................................................................... 11
89.......... Qualified privilege............................................................................. 11
90.......... Receivers and managers.................................................................... 11
92.......... Securities........................................................................................... 11
95A....... Solvency and insolvency.................................................................. 11
Division 8—Miscellaneous interpretation rules 11
100........ Address of registered office etc........................................................ 11
100A..... Operation of certain laws relating to instruments on which stamp duty has not been paid 11
101........ Amount of stock representing a number of shares........................... 11
102........ Applications to be in writing............................................................ 11
102B..... In Australia or elsewhere, in this jurisdiction or elsewhere etc........ 11
102C..... In Australia....................................................................................... 11
103........ Effect of certain contraventions of this Act..................................... 11
104........ Effect of provisions empowering a person to require or prohibit conduct 11
105........ Calculation of time............................................................................ 11
106........ Performance of functions by Commission delegate.......................... 11
107........ Notice in relation to top 20 members of a class............................... 11
108........ Parts of dollar to be disregarded in determining majority in value of creditors etc. 11
109........ References to persons, things and matters....................................... 11
109X..... Service of documents........................................................................ 11
Part 1.2A—Disclosing entities 11
Division 1—Object of Part 11
111AA.. Object of Part................................................................................... 11
Division 2—Definitions 11
111AB.. Terms defined in Division................................................................ 11
111AC.. Disclosing entity............................................................................... 11
111AD.. ED securities..................................................................................... 11
111AE... Securities of body or undertaking that is included in a licensed market’s official list 11
111AF... Securities (except debentures and managed investment products) to which lodged or deemed prospectus relates.......................................................................................................... 11
111AFA Managed investment products held by 100 or more persons.......... 11
111AG.. Securities issued as consideration for an acquisition under an off‑market takeover bid or Part 5.1 compromise or arrangement....................................................................................... 11
111AH.. When a person holds securities for the purposes of sections 111AF, 111AFA and 111AG 11
111AI.... Debentures that need trustee appointed under section 283AA....... 11
111AJ... Regulations may declare securities not to be ED securities.............. 11
111AK.. ED securities of a disclosing entity.................................................. 11
111AL... Listed or unlisted disclosing entity................................................... 11
111AM. Quoted ED securities........................................................................ 11
Division 3—Significance of being a disclosing entity 11
111AN.. Division contains outline of significance of being a disclosing entity 11
111AO.. Accounting requirements.................................................................. 11
111AP... Continuous disclosure requirements................................................. 11
111AQ.. Prospectus relief............................................................................... 11
111AQA..................................................... Product Disclosure Statement relief 11
Division 4—Exemptions and modifications 11
111AR.. Meaning of disclosing entity provisions........................................... 11
111AS... Exemptions by regulations............................................................... 11
111AT.. Exemptions by ASIC........................................................................ 11
111AU.. Enforcing conditions of exemptions................................................. 11
111AV.. Modifications by regulations............................................................ 11
111AW. Exemptions and modifications have effect....................................... 11
111AX.. Effect of Division............................................................................. 11
Part 1.4—Technical provisions about aids for readers 11
111J...... Small business guide......................................................................... 11
Part 1.5—Small business guide 11
1............ What registration means................................................................... 11
2............ The company structure for small business....................................... 11
3............ Setting up a new company............................................................... 11
4............ Continuing obligations after the company is set up......................... 11
5............ Company directors and company secretaries................................... 11
6............ Shares and shareholders.................................................................... 11
7............ Signing company documents............................................................ 11
8............ Funding the company’s operations.................................................. 11
9............ Returns to shareholders.................................................................... 11
10.......... Annual financial reports and audit.................................................... 11
11.......... Disagreements within the company................................................. 11
12.......... Companies in financial trouble......................................................... 11
Chapter 2A—Registering a company 11
Part 2A.1—What companies can be registered 11
112........ Types of companies......................................................................... 11
113........ Proprietary companies..................................................................... 11
114........ Minimum of 1 member..................................................................... 11
115........ Restrictions on size of partnerships and associations...................... 11
116........ Trade unions cannot be registered.................................................... 11
Part 2A.2—How a company is registered 11
117........ Applying for registration.................................................................. 11
118........ ASIC gives company ACN, registers company and issues certificate 11
119........ Company comes into existence on registration................................ 11
119A..... Jurisdiction of incorporation and jurisdiction of registration........... 11
120........ Members, directors and company secretary of a company............. 11
121........ Registered office............................................................................... 11
122........ Expenses incurred in promoting and setting up company................ 11
123........ Company may have common seal.................................................... 11
Chapter 2B—Basic features of a company 11
Part 2B.1—Company powers and how they are exercised 11
124........ Legal capacity and powers of a company........................................ 11
125........ Constitution may limit powers and set out objects......................... 11
126........ Agent exercising a company’s power to make contracts.................. 11
127........ Execution of documents (including deeds) by the company itself... 11
Part 2B.2—Assumptions people dealing with companies are entitled to make 11
128........ Entitlement to make assumptions.................................................... 11
129........ Assumptions that can be made under section 128........................... 11
130........ Information available to the public from ASIC does not constitute constructive notice 11
Part 2B.3—Contracts before registration 11
131........ Contracts before registration............................................................ 11
132........ Person may be released from liability but is not entitled to indemnity 11
133........ This Part replaces other rights and liabilities.................................... 11
Part 2B.4—Replaceable rules and constitution 11
134........ Internal management of companies................................................... 11
135........ Replaceable rules.............................................................................. 11
136........ Constitution of a company............................................................... 11
137........ Date of effect of adoption, modification or repeal of constitution... 11
138........ ASIC may direct company to lodge consolidated constitution........ 11
139........ Company must send copy of constitution to member..................... 11
140........ Effect of constitution and replaceable rules...................................... 11
141........ Table of replaceable rules................................................................. 11
Part 2B.5—Registered office and places of business 11
142........ Registered office............................................................................... 11
143........ ASIC may change address of registered office to a director’s address 11
144........ Company’s name must be displayed at registered office etc........... 11
145........ Opening hours of registered office of public company.................... 11
146........ Change of address of principal place of business............................. 11
Part 2B.6—Names 11
Division 1—Selecting and using a name 11
147........ When a name is available.................................................................. 11
148........ A company’s name........................................................................... 11
149........ Acceptable abbreviations.................................................................. 11
150........ Exception to requirement for using “Limited” in name.................... 11
151........ Exception to requirement for using “Limited” in name—pre‑existing licences 11
152........ Reserving a name.............................................................................. 11
153........ Using a name and ACN on documents............................................. 11
154........ Exception to requirement to have ACN on receipts......................... 11
155........ Regulations may exempt from requirement to set out information on documents 11
156........ Carrying on business using “Limited”, “No Liability” or “Proprietary” in name 11
Division 2—Changing a company’s name 11
157........ Company changing its name............................................................. 11
158........ ASIC’s power to direct company to change its name...................... 11
159........ ASIC’s power to include “Limited” in company’s name................. 11
160........ ASIC must issue new certificate if company’s name changes.......... 11
161........ Effect of name change....................................................................... 11
Part 2B.7—Changing company type 11
162........ Changing company type................................................................... 11
163........ Applying for change of type............................................................ 11
164........ ASIC changes type of company....................................................... 11
165........ ASIC may direct a proprietary company to change to a public company in certain circumstances 11
166........ Effect of change of type................................................................... 11
167........ Issue of shares by company or holding company—company limited by guarantee changing to company limited by shares................................................................................................ 11
167AA.. Application of Part to company limited both by shares and by guarantee 11
Chapter 2C—Registers 11
Part 2C.1—Registers generally 11
167A..... Who is covered by this Chapter....................................................... 11
168........ Registers to be maintained................................................................ 11
169........ Register of members......................................................................... 11
170........ Register of option holders and copies of options documents [see Note 3] 11
171........ Register of debenture holders........................................................... 11
172........ Location of registers......................................................................... 11
173........ Right to inspect and get copies......................................................... 11
174........ Agent’s obligations........................................................................... 11
175........ Correction of registers...................................................................... 11
176........ Evidentiary value of registers........................................................... 11
177........ Use of information on registers........................................................ 11
178........ Overseas branch registers................................................................. 11
Part 2C.2—Notice by proprietary companies of changes to member register 11
178A..... Notice of change to member register................................................. 11
178B..... Top 20 only...................................................................................... 11
178C..... Notice of change to share structure.................................................. 11
178D..... Time within which ASIC must be notified....................................... 11
Chapter 2D—Officers and employees 11
Part 2D.1—Duties and powers 11
179........ Background to duties of directors, other officers and employees.... 11
Division 1—General duties 11
180........ Care and diligence—civil obligation only.......................................... 11
181........ Good faith—civil obligations............................................................ 11
182........ Use of position—civil obligations.................................................... 11
183........ Use of information—civil obligations............................................... 11
184........ Good faith, use of position and use of information—criminal offences 11
185........ Interaction of sections 180 to 184 with other laws etc.................... 11
186........ Territorial application of sections 180 to 184.................................. 11
187........ Directors of wholly‑owned subsidiaries........................................... 11
188........ Responsibility of secretaries and directors for certain contraventions 11
189........ Reliance on information or advice provided by others..................... 11
190........ Responsibility for actions of delegate.............................................. 11
190A..... Limited application of Division to registrable Australian bodies..... 11
Division 2—Disclosure of, and voting on matters involving, material personal interests 11
191........ Material personal interest—director’s duty to disclose................... 11
192........ Director may give other directors standing notice about an interest 11
193........ Interaction of sections 191 and 192 with other laws etc.................. 11
194........ Voting and completion of transactions—directors of proprietary companies (replaceable rule—see section 135).......................................................................................................... 11
195........ Restrictions on voting—directors of public companies only........... 11
196........ ASIC power to make declarations and class orders.......................... 11
Division 3—Duty to discharge certain trust liabilities 11
197........ Directors liable for debts and other obligations incurred by corporation as trustee 11
Division 4—Powers 11
198A..... Powers of directors (replaceable rule—see section 135).................. 11
198B..... Negotiable instruments (replaceable rule—see section 135)............ 11
198C..... Managing director (replaceable rule—see section 135).................... 11
198D..... Delegation......................................................................................... 11
198E...... Single director/shareholder proprietary companies.......................... 11
198F...... Right of access to company books................................................... 11
Part 2D.2—Restrictions on indemnities, insurance and termination payments 11
Division 1—Indemnities and insurance for officers and auditors 11
199A..... Indemnification and exemption of officer or auditor........................ 11
199B..... Insurance premiums for certain liabilities of director, secretary, other officer or auditor 11
199C..... Certain indemnities, exemptions, payments and agreements not authorised and certain documents void 11
Division 2—Termination payments 11
200A..... When benefit given in connection with retirement from office......... 11
200B..... Retirement benefits generally need membership approval............... 11
200C..... Benefits on transfer of undertaking or property need membership approval 11
200D..... Contravention to receive benefit without member approval............ 11
200E...... Approval by members...................................................................... 11
200F...... Exempt benefits and benefits given in certain circumstances........... 11
200G..... Genuine payments of pension and lump sum.................................. 11
200H..... Benefits required by law................................................................... 11
200J...... Benefits to be held in trust for company.......................................... 11
Part 2D.3—Appointment, remuneration and cessation of appointment of directors 11
Division 1—Appointment of directors 11
201A..... Minimum number of directors.......................................................... 11
201B..... Who can be a director....................................................................... 11
201D..... Consent to act as director................................................................. 11
201E...... Special rules for the appointment of public company directors...... 11
201F...... Special rules for the appointment of directors for single director/single shareholder proprietary companies 11
201G..... Company may appoint a director (replaceable rule—see section 135).. 11
201H..... Directors may appoint other directors (replaceable rule—see section 135) 11
201J...... Appointment of managing directors (replaceable rule—see section 135) 11
201K..... Alternate directors (replaceable rule—see section 135)................... 11
201L...... Signpost—ASIC to be notified of appointment............................... 11
201M.... Effectiveness of acts by directors..................................................... 11
Division 2—Remuneration of directors 11
202A..... Remuneration of directors (replaceable rule—see section 135)....... 11
202B..... Members may obtain information about directors’ remuneration.... 11
202C..... Special rule for single director/single shareholder proprietary companies 11
Division 3—Resignation, retirement or removal of directors 11
203A..... Director may resign by giving written notice to company (replaceable rule—see section 135) 11
203B..... Signpost to consequences of disqualification from managing corporations 11
203C..... Removal by members—proprietary companies (replaceable rule—see section 135) 11
203D..... Removal by members—public companies....................................... 11
203E...... Director cannot be removed by other directors—public companies 11
203F...... Termination of appointment of managing director (replaceable rule—see section 135) 11
Part 2D.4—Appointment of secretaries 11
204A..... Minimum number of secretaries....................................................... 11
204B..... Who can be a secretary..................................................................... 11
204C..... Consent to act as secretary............................................................... 11
204D..... How a secretary is appointed........................................................... 11
204E...... Effectiveness of acts by secretaries.................................................. 11
204F...... Terms and conditions of office for secretaries (replaceable rule—see section 135) 11
204G..... Signpost to consequences of disqualification from managing corporations 11
Part 2D.5—Public information about directors and secretaries 11
205A..... Director, secretary or alternate director may notify ASIC of resignation or retirement 11
205B..... Notice of name and address of directors and secretaries to ASIC.... 11
205C..... Director and secretary must give information to company.............. 11
205D..... Address for officers.......................................................................... 11
205E...... ASIC’s power to ask for information about person’s position as director or secretary 11
205F...... Director must give information to company.................................... 11
205G..... Listed company—director to notify market operator of shareholdings etc. 11
Part 2D.6—Disqualification from managing corporations 11
206A..... Disqualified person not to manage corporations.............................. 11
206B..... Automatic disqualification................................................................ 11
206BA.. Extension of period of automatic disqualification............................ 11
206C..... Court power of disqualification—contravention of civil penalty provision 11
206D..... Court power of disqualification—insolvency and non‑payment of debts 11
206E...... Court power of disqualification—repeated contraventions of Act.. 11
206F...... ASIC’s power of disqualification..................................................... 11
206G..... Court power to grant leave............................................................... 11
206H..... Territorial application of this Part.................................................... 11
206HA.. Limited application of Part to registrable Australian bodies............ 11
Chapter 2E—Related party transactions 11
207........ Purpose............................................................................................. 11
Part 2E.1—Member approval needed for related party benefit 11
Division 1—Need for member approval 11
208........ Need for member approval for financial benefit............................... 11
209........ Consequences of breach.................................................................... 11
Division 2—Exceptions to the requirement for member approval 11
210........ Arm’s length terms........................................................................... 11
211........ Remuneration and reimbursement for officer or employee.............. 11
212........ Indemnities, exemptions, insurance premiums and payment for legal costs for officers 11
213........ Small amounts given to director or spouse....................................... 11
214........ Benefit to or by closely‑held subsidiary.......................................... 11
215........ Benefits to members that do not discriminate unfairly.................... 11
216........ Court order....................................................................................... 11
Division 3—Procedure for obtaining member approval 11
217........ Resolution may specify matters by class or kind............................ 11
218........ Company must lodge material that will be put to members with ASIC 11
219........ Requirements for explanatory statement to members...................... 11
220........ ASIC may comment on proposed resolution................................... 11
221........ Requirements for notice of meeting.................................................. 11
222........ Other material put to members......................................................... 11
223........ Proposed resolution cannot be varied............................................... 11
224........ Voting by or on behalf of related party interested in proposed resolution 11
225........ Voting on the resolution................................................................... 11
226........ Notice of resolution to be lodged...................................................... 11
227........ Declaration by court of substantial compliance............................... 11
Part 2E.2—Related parties and financial benefits 11
228........ Related parties.................................................................................. 11
229........ Giving a financial benefit.................................................................. 11
Part 2E.3—Interaction with other rules 11
230........ General duties still apply................................................................. 11
Chapter 2F—Members’ rights and remedies 11
231........ Membership of a company.............................................................. 11
Part 2F.1—Oppressive conduct of affairs 11
232........ Grounds for Court order................................................................... 11
233........ Orders the Court can make............................................................... 11
234........ Who can apply for order.................................................................. 11
235........ Requirement for person to lodge order............................................. 11
Part 2F.1A—Proceedings on behalf of a company by members and others 11
236........ Bringing, or intervening in, proceedings on behalf of a company..... 11
237........ Applying for and granting leave....................................................... 11
238........ Substitution of another person for the person granted leave............ 11
239........ Effect of ratification by members..................................................... 11
240........ Leave to discontinue, compromise or settle proceedings brought, or intervened in, with leave 11
241........ General powers of the Court............................................................ 11
242........ Power of the Court to make costs orders......................................... 11
Part 2F.2—Class rights 11
246B..... Varying and cancelling class rights.................................................... 11
246C..... Certain actions taken to vary rights etc............................................ 11
246D..... Variation, cancellation or modification without unanimous support of class 11
246E...... Variation, cancellation or modification with unanimous support of class 11
246F...... Company must lodge documents and resolutions with ASIC.......... 11
246G..... Member’s copies of documents and resolutions.............................. 11
Part 2F.3—Inspection of books 11
247A..... Order for inspection of books of company or registered managed investment scheme 11
247B..... Ancillary orders................................................................................ 11
247C..... Disclosure of information acquired in inspection............................. 11
247D..... Company or directors may allow member to inspect books (replaceable rule see section 135) 11
Chapter 2G—Meetings 11
Part 2G.1—Directors’ meetings 11
Division 1—Resolutions and declarations without meetings 11
248A..... Circulating resolutions of companies with more than 1 director (replaceable rule see section 135) 11
248B..... Resolutions and declarations of 1 director proprietary companies.. 11
Division 2—Directors’ meetings 11
248C..... Calling directors’ meetings (replaceable rule see section 135)......... 11
248D..... Use of technology............................................................................. 11
248E...... Chairing directors’ meetings (replaceable rule see section 135)....... 11
248F...... Quorum at directors’ meetings (replaceable rule see section 135)... 11
248G..... Passing of directors’ resolutions (replaceable rule see section 135) 11
Part 2G.2—Meetings of members of companies 11
Division 1—Resolutions without meetings 11
249A..... Circulating resolutions of proprietary companies with more than 1 member 11
249B..... Resolutions of 1 member companies................................................ 11
Division 2—Who may call meetings of members 11
249C..... Calling of meetings of members by a director (replaceable rule—see section 135) 11
249CA.. Calling of meetings of members of a listed company by a director.. 11
249D..... Calling of general meeting by directors when requested by members 11
249E...... Failure of directors to call general meeting........................................ 11
249F...... Calling of general meetings by members........................................... 11
249G..... Calling of meetings of members by the Court.................................. 11
Division 3—How to call meetings of members 11
249H..... Amount of notice of meetings.......................................................... 11
249HA.. Amount of notice of meetings of listed company............................ 11
249J...... Notice of meetings of members to members and directors............... 11
249K..... Auditor entitled to notice and other communications...................... 11
249L...... Contents of notice of meetings of members..................................... 11
249LA... Notice of meeting not required to contain certain information......... 11
249M.... Notice of adjourned meetings (replaceable rule—see section 135).. 11
Division 4—Members’ rights to put resolutions etc. at general meetings 11
249N..... Members’ resolutions....................................................................... 11
249O..... Company giving notice of members’ resolutions............................. 11
249P...... Members’ statements to be distributed............................................ 11
Division 5—Holding meetings of members 11
249Q..... Purpose............................................................................................. 11
249R..... Time and place for meetings of members......................................... 11
249S...... Technology....................................................................................... 11
249T..... Quorum (replaceable rule—see section 135).................................... 11
249U..... Chairing meetings of members (replaceable rule—see section 135). 11
249V..... Auditor’s right to be heard at general meetings................................ 11
249W.... Adjourned meetings.......................................................................... 11
Division 6—Proxies and body corporate representatives 11
249X..... Who can appoint a proxy (replaceable rule for proprietary companies and mandatory rule for public companies—see section 135)....................................................................................... 11
249Y..... Rights of proxies............................................................................... 11
249Z..... Company sending appointment forms or lists of proxies must send to all members 11
250A..... Appointing a proxy.......................................................................... 11
250B..... Proxy documents.............................................................................. 11
250BA.. Proxy documents—listed companies............................................... 11
250C..... Validity of proxy vote...................................................................... 11
250D..... Body corporate representative......................................................... 11
Division 7—Voting at meetings of members 11
250E...... How many votes a member has (replaceable rule—see section 135) 11
250F...... Jointly held shares (replaceable rule—see section 135)................... 11
250G..... Objections to right to vote (replaceable rule—see section 135)....... 11
250H..... Votes need not all be cast in the same way...................................... 11
250J...... How voting is carried out (replaceable rule—see section 135)........ 11
250K..... Matters on which a poll may be demanded...................................... 11
250L...... When a poll is effectively demanded................................................ 11
250M.... When and how polls must be taken (replaceable rule—see section 135) 11
Division 8—AGMs of public companies 11
250N..... Public company must hold AGM.................................................... 11
250P...... Extension of time for holding AGM................................................. 11
250PA... Written questions to auditor submitted by members of listed company before AGM 11
250R..... Business of AGM............................................................................ 11
250RA.. Auditor required to attend listed company’s AGM........................ 11
250S...... Questions and comments by members on company management at AGM 11
250SA... Listed company—remuneration report............................................ 11
250T..... Questions by members of auditors at AGM.................................... 11
Part 2G.3—Minutes and members’ access to minutes 11
251A..... Minutes............................................................................................ 11
251AA.. Disclosure of proxy votes—listed companies.................................. 11
251B..... Members’ access to minutes............................................................ 11
Part 2G.4—Meetings of members of registered managed investment schemes 11
Division 1—Who may call meetings of members 11
252A..... Calling of meetings of members by responsible entity..................... 11
252B..... Calling of meetings of members by responsible entity when requested by members 11
252C..... Failure of responsible entity to call meeting of the scheme’s members.. 11
252D..... Calling of meetings of members by members................................... 11
252E...... Calling of meetings of members by the Court.................................. 11
Division 2—How to call meetings of members 11
252F...... Amount of notice of meetings.......................................................... 11
252G..... Notice of meetings of members to members, directors and auditors 11
252H..... Auditors entitled to other communications...................................... 11
252J...... Contents of notice of meetings of members..................................... 11
252K..... Notice of adjourned meetings........................................................... 11
Division 3—Members’ rights to put resolutions etc. at meetings of members 11
252L...... Members’ resolutions....................................................................... 11
252M.... Responsible entity giving notice of members’ resolutions............... 11
252N..... Members’ statements to be distributed............................................ 11
Division 4—Holding meetings of members 11
252P...... Time and place for meetings of members......................................... 11
252Q..... Technology....................................................................................... 11
252R..... Quorum............................................................................................. 11
252S...... Chairing meetings of members.......................................................... 11
252T..... Auditors’ right to be heard at meetings of members......................... 11
252U..... Adjourned meetings.......................................................................... 11
Division 5—Proxies and body corporate representatives 11
252V..... Who can appoint a proxy................................................................. 11
252W.... Rights of proxies............................................................................... 11
252X..... Responsible entity sending appointment forms or lists of proxies must send to all members 11
252Y..... Appointing a proxy.......................................................................... 11
252Z..... Proxy documents.............................................................................. 11
253A..... Validity of proxy vote...................................................................... 11
253B..... Body corporate representative......................................................... 11
Division 6—Voting at meetings of members 11
253C..... How many votes a member has........................................................ 11
253D..... Jointly held interests........................................................................ 11
253E...... Responsible entity and associates cannot vote if interested in resolution 11
253F...... How to work out the value of an interest......................................... 11
253G..... Objections to a right to vote............................................................. 11
253H..... Votes need not all be cast in the same way...................................... 11
253J...... How voting is carried out................................................................. 11
253K..... Matters on which a poll may be demanded...................................... 11
253L...... When a poll is effectively demanded................................................ 11
Division 7—Minutes and members’ access to minutes 11
253M.... Minutes............................................................................................ 11
253N..... Members’ access to minutes............................................................ 11
Chapter 2H—Shares 11
Part 2H.1—Issuing and converting shares 11
254A..... Power to issue bonus, partly‑paid, preference and redeemable preference shares 11
254B..... Terms of issue.................................................................................. 11
254C..... No par value shares.......................................................................... 11
254D..... Pre‑emption for existing shareholders on issue of shares in proprietary company (replaceable rule—see section 135).......................................................................................................... 11
254E...... Court validation of issue................................................................... 11
254F...... Bearer shares and stock must not be issued..................................... 11
254G..... Conversion of shares........................................................................ 11
254H..... Resolution to convert shares into larger or smaller number.............. 11
Part 2H.2—Redemption of redeemable preference shares 11
254J...... Redemption must be in accordance with terms of issue................... 11
254K..... Other requirements about redemption.............................................. 11
254L...... Consequences of contravening section 254J or 254K...................... 11
Part 2H.3—Partly‑paid shares 11
254M.... Liability on partly‑paid shares......................................................... 11
254N..... Calls may be limited to when company is externally‑administered. 11
254P...... No liability companies—calls on shares........................................... 11
254Q..... No liability companies—forfeiture and sale of shares for failure to meet call 11
254R..... No liability companies—redemption of forfeited shares................. 11
Part 2H.4—Capitalisation of profits 11
254S...... Capitalisation of profits................................................................... 11
Part 2H.5—Dividends 11
254T..... Dividends to be paid out of profits.................................................. 11
254U..... Other provisions about paying dividends (replaceable rule—see section 135) 11
254V..... When does the company incur a debt?............................................. 11
254W.... Dividend rights................................................................................. 11
Part 2H.6—Notice requirements 11
254X..... Notice to ASIC of share issue.......................................................... 11
254Y..... Notice to ASIC of share cancellation................................................ 11
Chapter 2J—Transactions affecting share capital 11
Part 2J.1—Share capital reductions and share buy‑backs 11
256A..... Purpose............................................................................................. 11
Division 1—Reductions in share capital not otherwise authorised by law 11
256B..... Company may make reduction not otherwise authorised................ 11
256C..... Shareholder approval........................................................................ 11
256D..... Consequences of failing to comply with section 256B.................... 11
256E...... Signposts to other relevant provisions............................................. 11
Division 2—Share buy‑backs 11
257A..... The company’s power to buy back its own shares......................... 11
257B..... Buy‑back procedure—general.......................................................... 11
257C..... Buy‑back procedure—shareholder approval if the 10/12 limit exceeded 11
257D..... Buy‑back procedure—special shareholder approval for selective buy‑back 11
257E...... Buy‑back procedure—lodgment of offer documents with ASIC..... 11
257F...... Notice of intended buy‑back............................................................ 11
257G..... Buy‑back procedure—disclosure of relevant information when offer made 11
257H..... Acceptance of offer and transfer of shares to the company............. 11
257J...... Signposts to other relevant provisions............................................. 11
Division 3—Other share capital reductions 11
258A..... Unlimited companies........................................................................ 11
258B..... Right to occupy or use real property............................................... 11
258C..... Brokerage or commission.................................................................. 11
258D..... Cancellation of forfeited shares........................................................ 11
258E...... Other share cancellations.................................................................. 11
258F...... Reductions because of lost capital.................................................... 11
Part 2J.2—Self‑acquisition and control of shares 11
259A..... Directly acquiring own shares.......................................................... 11
259B..... Taking security over own shares or shares in holding company...... 11
259C..... Issuing or transferring shares to controlled entity............................ 11
259D..... Company controlling entity that holds shares in it.......................... 11
259E...... When a company controls an entity................................................. 11
259F...... Consequences of failing to comply with section 259A or 259B...... 11
Part 2J.3—Financial assistance 11
260A..... Financial assistance by a company for acquiring shares in the company or a holding company 11
260B..... Shareholder approval........................................................................ 11
260C..... Exempted financial assistance........................................................... 11
260D..... Consequences of failing to comply with section 260A.................... 11
Part 2J.4—Interaction with general directors’ duties 11
260E...... General duties still apply................................................................. 11
Chapter 2K—Charges 11
Part 2K.1—Preliminary 11
261........ Interpretation and application.......................................................... 11
Part 2K.2—Registration 11
262........ Charges required to be registered...................................................... 11
263........ Lodgment of notice of charge and copy of instrument..................... 11
264........ Acquisition of property subject to charge........................................ 11
265........ Registration of documents relating to charges.................................. 11
265A..... Standard time for the purposes of section 265................................. 11
266........ Certain charges void against liquidator or administrator................... 11
267........ Charges in favour of certain persons void in certain cases............... 11
268........ Assignment and variation of charges................................................ 11
269........ Satisfaction of, and release of property from, charges..................... 11
270........ Lodgment of notices, offences etc.................................................... 11
271........ Company to keep documents relating to charges and register of charges 11
272........ Certificates........................................................................................ 11
273A..... Application of State and Territory laws to charges required to be registered under this Part 11
273B..... Application of State and Territory laws to transfers, assignments or giving of charges registered under this Part.......................................................................................................... 11
273C..... Application of specified State and Territory laws to crop liens, wool liens and stock mortgages registered under this Part................................................................................................... 11
273D..... Sections 273A to 273C do not apply to charges given by company jointly with person who is not a company 11
274........ Power of Court to rectify Register................................................... 11
277........ Power to exempt from compliance with certain requirements of Division 11
Part 2K.3—Order of priority 11
278........ Definitions........................................................................................ 11
279........ Priorities of charges.......................................................................... 11
280........ General priority rules in relation to registered charges..................... 11
281........ General priority rule in relation to unregistered charges................... 11
282........ Special priority rules........................................................................ 11
An Act to make provision in relation to corporations and financial products and services, and for other purposes
This Act may be cited as the Corporations Act 2001.
This Act commences on a day to be fixed by Proclamation.
(1) The operation of this Act in the referring States is based on:
(a) the legislative powers that the Commonwealth Parliament has under section 51 of the Constitution (other than paragraph 51(xxxvii)); and
(b) the legislative powers that the Commonwealth Parliament has in respect of matters to which this Act relates because those matters are referred to it by the Parliaments of the referring States under paragraph 51(xxxvii) of the Constitution.
Note: The State referrals fully supplement the Commonwealth Parliament’s other powers by referring the matters to the Commonwealth Parliament to the extent to which they are not otherwise included in the legislative powers of the Commonwealth Parliament.
(2) The operation of this Act in the
(a) the legislative powers that the Commonwealth Parliament has under section 122 of the Constitution to make laws for the government of those Territories; and
(b) the legislative powers that the Commonwealth Parliament has under section 51 of the Constitution.
Despite subsection 22(3) of the Acts Interpretation Act 1901, this Act as applying in those territories is a law of the Commonwealth.
(3) The operation of this Act outside
(a) the legislative power the Commonwealth Parliament has under paragraph 51(xxix) of the Constitution; and
(b) the other legislative powers that the Commonwealth Parliament has under section 51 of the Constitution; and
(c) the legislative powers that the Commonwealth Parliament has under section 122 of the Constitution to make laws for the government of those Territories.
(4) The operation of this Act in a State that is not a referring State is based on:
(a) the legislative powers that the Commonwealth Parliament has under section 51 (other than paragraph 51(xxxvii)) and section 122 of the Constitution; and
(b) the legislative powers that the Commonwealth Parliament has in respect of matters to which this Act relates because those matters are referred to it by the Parliaments of the referring States under paragraph 51(xxxvii) of the Constitution.
Reference of matters by State Parliament to Commonwealth Parliament
(1) A State is a referring State if the Parliament of the State has referred the matters covered by subsections (4) and (5) to the Parliament of the Commonwealth for the purposes of paragraph 51(xxxvii) of the Constitution:
(a) if and to the extent that the matters are not otherwise included in the legislative powers of the Parliament of the Commonwealth (otherwise than by a reference under paragraph 51(xxxvii) of the Constitution); and
(b) if and to the extent to which the matters are included in the legislative powers of the Parliament of the State.
This subsection has effect subject to subsections (6) and (7).
(2) A State is a referring State even if the State reference Act includes a provision to the effect that nothing in the State reference Act is intended to enable the making of laws pursuant to the amendment reference with the sole or main underlying purpose or object of regulating industrial relations matters even if, but for that provision in the State reference Act, the law would be a law with respect to a matter referred to the Parliament of the Commonwealth by the amendment reference.
(3) A State is a referring State even if a law of the State provides that the reference to the Commonwealth Parliament of either or both of the matters covered by subsections (4) and (5) is to terminate in particular circumstances.
Reference covering initial Corporations Act and ASIC Act
(4) This subsection covers the matters to which the referred provisions relate to the extent of making laws with respect to those matters by including the referred provisions in the initial Corporations Act and the initial ASIC Act.
Reference covering amendments of this Act and ASIC Act
(5) This subsection covers the matters of the formation of corporations, corporate regulation and the regulation of financial products and services to the extent of the making of laws with respect to those matters by making express amendments of this Act or the ASIC Act.
Effect of termination of reference
(6) A State ceases to be a referring State if the State’s initial reference terminates.
(7) A State ceases to be a referring State if:
(a) the State’s amendment reference terminates; and
(b) subsection (8) does not apply to the termination.
(8) A State does not cease to be a referring State because of the termination of its amendment reference if:
(a) the termination is effected by the Governor of that State fixing a day by proclamation as the day on which the reference terminates; and
(b) the day fixed is no earlier than the first day after the end of the period of 6 months beginning on the day on which the proclamation is published; and
(c) that State’s amendment reference, and the amendment reference of every other State, terminates on the same day.
Definitions
(9) In this section:
amendment reference of a State means the reference by the Parliament of the State to the Parliament of the Commonwealth of the matters covered by subsection (5).
express amendment of this Act or the ASIC Act means the direct amendment of the text of this Act or the ASIC Act (whether by the insertion, omission, repeal, substitution or relocation of words or matter) by Commonwealth Acts, but does not include the enactment by a Commonwealth Act of a provision that has, or will have, substantive effect otherwise than as part of the text of this Act or the ASIC Act.
initial ASIC Act means the ASIC Act as originally enacted.
initial Corporations Act means this Act as originally enacted.
initial reference of a State means the reference by the Parliament of the State to the Parliament of the Commonwealth of the matters covered by subsection (4).
referred provisions means:
(a) the initial Corporations Act; and
(b) the initial ASIC Act;
to the extent to which they deal with matters that are included in the legislative powers of the Parliaments of the States.
State reference Act for a State is the law under which the initial reference and the amendment reference are given.
Geographical coverage of “this jurisdiction”
(1) Section 9 defines this jurisdiction as the area that includes:
(a) each referring State (including its coastal sea); and
(b) the
(c) the
(d) also, for the purposes of the application of a provision of Chapter 7 or an associated provision (see subsection (10))—any external Territory in which the provision applies because of subsection (9) (but only to the extent provided for in that subsection).
(2) Throughout this Act, this jurisdiction therefore consists of:
(a) either:
(i) the whole of
(ii)
(b) also, when used in or in relation to a provision of Chapter 7 or an associated provision (see subsection (10))—any external Territory in which the provision applies because of subsection (9) (but only to the extent provided for in that s