THE CORPORATIONS LAW

CHAPTER 6A - COMPULSORY ACQUISITIONS AND BUY-OUTS

PART 6A.2 - GENERAL COMPULSORY ACQUISITIONS AND BUY-OUTS

Division 2 - Compulsory buy-out of convertible securities by 100% holder

SECTION 665C   RIGHT OF HOLDERS OF CONVERTIBLE SECURITIES TO BE BOUGHT OUT  

665C(1)  [Notice requiring acquisition]  

Within 1 month after notice under section 665B is given in relation to convertible securities, the holder of the convertible securities may give the 100% holder a notice requiring the 100% holder to acquire the securities.

665C(2)  [Existence of contract]  

The notice by the holder of convertible securities gives rise to a contract between the holder and the 100% holder for the sale of the securities on:

(a)  terms agreed to by the 100% holder and the holder of the convertible securities; or

(b)  the terms determined by the Court on application by the holder of the convertible securities.

665C(3)  [Court determination]  

If the Court makes a determination under paragraph (2)(b) in relation to the terms of sale for a holder's convertible securities of a particular class, the determination applies to all holders of convertible securities in that class who have applications to the Court pending for a determination under that paragraph in relation to the terms of sale of their convertible securities.