Clause 66

No company shall allot any preference shares or convert any issued shares into preference shares unless there is set out in its memorandum or articles the rights of the holders of those shares with respect to repayment of capital, participation in surplus assets and profits, cumulative or non-cumulative dividends, voting, and priority of payment of capital and dividend in relation to other shares or other classes of preference shares.[Aust.s. 66.]

If default is made in complying with this section the company and every officer of the company who is in default shall be guilty of an offence against this Act and shall be liable on conviction to a fine not exceeding five hundred dollars.