Corporations Regulations 2001
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Hide history note[ CCH Note: Pursuant to the Corporations Amendment Regulations 2001 (No 4) (SR 2001 No 319) effective 11 March 2002, Chapter 7 (Securities) comprising reg 7.1.01 - 7.15.01 and Chapter 8 (The futures industry) comprising reg 8.1.01 - 8.7.03 are replaced by a new Chapter 7 (Financial services and markets) comprising reg 7.1.01 - 7.12.01. As the subject matter of the new Chapter 7 relates to the new financial services reform regime, " inserted " has been used in the history notes for each provision, and all references to the former provisions have been removed.]
Modifying legislative instruments: The application of Pt 7.9 is affected by the ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070.
For other legislative instruments or class orders before 1 January 2022 that affect the application of Pt 7.9, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
For paragraph 1019I(2)(f) of the Act, the following information is specified for an offer document if payment for the financial products mentioned in the document is to be made in instalments:
(a) the amount of each instalment;
(b) when each instalment will be paid;
(c) how many instalments will be paid;
(d) how each instalment will be paid;
(e) the following text, replacing X with the total present value of the instalments and Y with the total current value of the financial products:
7.9.97A(2) [ Total present value]" Money loses value over time. In this case, the value of the total instalment payments being offered to you is approximately the same as being paid a single amount of $X today. $X represents the ' present day value ' of the instalment payments. Commonwealth legislation sets out a method for calculating the present value of the offer, using the rate of interest of 1.1% per month. You can assess this offer by comparing the present day value of the instalment payments ($X) with the total market price of your shares or other financial products ($Y).
In general, if the present day value of the instalment payments being offered is less than the market price of your shares or other financial products, then this offer may not be fair to you. "
For this regulation, the total present value of a series of instalment payments is the amount:
where:
n
is the number of instalment payments to be made.
R
p
is the amount of instalment payment number
p
, where each instalment payment is assigned a number from l to
n
.
t
p
is the number of whole months between the date of offer and the date that the instalment number
p
is due.
For this regulation, the total current value of a financial product is the market value for the product on the date of offer as mentioned in paragraph 1019I(2)(b) of the Act or the fair estimate of the value of the product on the date of offer as mentioned in paragraph 1019I(2)(c) of the Act, as applicable.
7.9.97A(4) [ Australian currency]For this regulation, all money amounts must be represented in Australian currency.
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