Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

PART 7.3B - CRISIS RESOLUTION FOR CS FACILITY LICENSEES  

DIVISION 3 - STATUTORY MANAGEMENT  

Subdivision C - Effect of statutory manager assuming control  

SECTION 834C   EFFECT OF STATUTORY MANAGEMENT ON BODY CORPORATE ' S MEMBERS  

Transfer of shares

834C(1)    
A transfer of shares in a body corporate that is made during the statutory management of the body corporate is void except if:

(a)    both:

(i) the statutory manager or the Reserve Bank gives written consent to the transfer; and

(ii) that consent is unconditional; or

(b)    all of the following subparagraphs apply:

(i) the statutory manager or the Reserve Bank gives written consent to the transfer;

(ii) that consent is subject to one or more specified conditions;

(iii) those conditions have been satisfied; or

(c)    the transfer is done to give effect to an action under section 833D (recapitalisation actions) by the statutory manager; or

(d)    the transfer is done to give effect to a transfer under Division 4 (compulsory transfers).

Alteration in the status of members

834C(2)    
An alteration in the status of members of a body corporate that is made during the statutory management of the body corporate is void except if:

(a)    both:

(i) the statutory manager or the Reserve Bank gives written consent to the alteration; and

(ii) that consent is unconditional; or

(b)    all of the following subparagraphs apply:

(i) the statutory manager or the Reserve Bank gives written consent to the alteration;

(ii) that consent is subject to one or more specified conditions;

(iii) those conditions have been satisfied; or

(c)    the alteration is done to give effect to an action under section 833D (recapitalisation actions) by the statutory manager; or

(d)    the alteration is done to give effect to a transfer under Division 4 (compulsory transfers).

834C(3)    
As soon as practicable after an alteration in the status of members of a body corporate is made during the statutory management of the body corporate, the statutory manager must give a written notice:

(a)    to the persons who were members of the body just before the alteration; and

(b)    that:

(i) identifies the alteration; and

(ii) explains the effect of the alteration on the members ' interests.

834C(4)    
A contravention of subsection (3) does not affect the validity of the alteration.