Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Any reduction in share capital involved in:
(a) the redemption of redeemable preference shares out of the proceeds of a new issue of shares made for the purpose of the redemption (see section 254K); or
(b) a company's buying - back of its own shares under sections 257A to 257J if the shares are paid for out of share capital.
is authorised by this section.
(2) A company may cancel shares returned to it under section 651C, 724(2), 737 or 738 and any reduction in the company's share capital that is involved is authorised by this subsection.
(3) Any reduction in a company's share capital because of an order under section 1325A is authorised by this subsection.