Banking Act 1959

Part II - Provisions relating to the carrying on of banking business  

Division 2 - Protection of depositors  

Subdivision B - Provisions dealing with control of a body corporate ' s business by a Banking Act statutory manager  

SECTION 14AA   Banking Act statutory manager ' s additional powers to facilitate recapitalisation  

Powers

(1)    

A Banking Act statutory manager of a body corporate that is a company that has a share capital and is registered under the Corporations Act 2001 may do one or more of the following acts on terms determined by the Banking Act statutory manager:

(a) issue shares, or rights to acquire shares, in the company;

(b) cancel shares, or rights to acquire shares, in the company;

(c) reduce the company ' s share capital by cancelling any paid-up share capital that is not represented by available assets;

(d) sell shares, or rights to acquire shares, in the company;

(e) vary or cancel rights or restrictions attached to shares in a class of shares in the company.

Note:

Before doing such an act, the Banking Act statutory manager will usually need to get and consider a report on the fair value of each share or right concerned: see section 14AB .

Giving company members notice of exercise of powers

(2)    

As soon as practicable after doing an act described in paragraph (1)(a), (b), (c) or (e) or subsection (3), the Banking Act statutory manager must give written notice to the persons who were members (under section 231 of the Corporations Act 2001 ) of the company just before the act, identifying the act and explaining its effect on their interests as members.

(3)    
One of the acts to which subsection (2) relates is the offering of shares, or rights to acquire shares, in the company for sale under paragraph (1)(d).

Exercise of powers despite other laws etc.

(4)    

A Banking Act statutory manager may do an act under subsection (1) despite:

(a) the Corporations Act 2001 (without limiting the scope of section 70B of this Act); and

(b) the company ' s constitution; and

(c) any contract or arrangement to which the company is party; and

(d) any listing rules of a financial market in whose official list the company is included.