Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A CCIV must not acquire shares (or units of shares) in itself except:
(a) in buying back shares under section 1231C; or
(c) in circumstances covered by section 1230Q (about cross - investment).
(2) Section 259A does not apply to a CCIV.
(3) Subject to subsection (1), a retail CCIV may acquire and hold a share in the CCIV, but it must only do so:
(a) for not less than the consideration that would be payable if the share were acquired by another person; and
(b) subject to terms and conditions that would not disadvantage other members.
Note: A similar limitation applies to the corporate director of a retail CCIV: see section 1224P.
(4) If a CCIV contravenes subsection (1) or (3):
(a) the contravention does not affect the validity of the acquisition or security or of any contract or transaction connected with it; and
(b) the CCIV is not guilty of an offence.
Civil liability
(5) Any person who is involved in a CCIV's contravention of subsection (1) or (3) contravenes this subsection.
Note 1: This subsection is a civil penalty provision (see section 1317E).
Note 2: Section 79 defines involved .
Fault - based offence
(6) A person commits an offence if they are involved in a CCIV's contravention of subsection (1) or (3) and the involvement is dishonest.