THE CORPORATIONS LAW

CHAPTER 6 - TAKEOVERS

SECTION 602   PURPOSES OF CHAPTER  

602     The purposes of this Chapter are to ensure that:

(a)  the acquisition of control over:

(i) the voting shares in a listed company, or an unlisted company with more than 50 members; or

(ii) the voting shares in a listed body; or

(iii) the voting interests in a listed managed investment scheme;

takes place in an efficient, competitive and informed market; and

(b)  the holders of the shares or interests, and the directors of the company or body or the responsible entity for the scheme:

(i) know the identity of any person who proposes to acquire a substantial interest in the company, body or scheme; and

(ii) have a reasonable time to consider the proposal; and

(iii) are given enough information to enable them to assess the merits of the proposal; and

(c)  as far as practicable, the holders of the relevant class of voting shares or interests all have a reasonable and equal opportunity to participate in any benefits accruing to the holders through any proposal under which a person would acquire a substantial interest in the company, body or scheme; and

(d)  an appropriate procedure is followed as a preliminary to compulsory acquisition of voting shares or interests or any other kind of securities under Part 6A.1.

Note 1:

To achieve the objectives referred to in paragraphs (a), (b) and (c), the prohibition in section 606 and the exceptions to it refer to interests in ``voting shares''. To achieve the objective in paragraph (d), the provisions that deal with the takeover procedure refer more broadly to interests in ``securities''.

Note 2: Subsection 92(3) defines securities for the purposes of this Chapter.