Pooled Development Funds Act 1992

PART 4 - REGULATION OF PDFs  

Division 1 - Making investments  

SECTION 20   FIRST KIND OF ALLOWED INVESTMENT: ACQUIRING SHARES  

20(1)   [Investment by subscription or purchase]  

A PDF may make an investment by subscribing for or buying:

(a) ordinary shares in a company (in this Division called the " investee company " ); or

(b) some other kind of shares in a company (in this Division also called the " investee company " ) that the Board approves the PDF investing in.

20(2)   [Pre-owned shares]  

Unless the Board otherwise approves, the shares must not be pre-owned shares.

20(3)   [Approval re pre-owned shares]  

The Board may give an approval for the purposes of subsection (2) only if it is satisfied:

(a) that it is in the investee company ' s best interests for the person who holds the shares to which the investment relates to cease to hold shares in the investee company; and

(b) that that person proposes to dispose of all shares in the investee company that the person holds; and

(c) that the value of the investee company will be increased by the PDF acquiring the shares to which the investment relates; and

(d) that either:

(i) the PDF already holds other shares in the investee company, some or all of which are not pre-owned shares; or

(ii) the PDF will, in connection with acquiring the shares, acquire other shares in the investee company, some or all of which are not pre-owned shares.

20(4)   [Amounts paid on pre-owned shares]  

A reference in this Part to all amounts paid on shares held by a PDF is, in so far as the shares are pre-owned shares, a reference to:

(a) the amount that the PDF paid for the shares; and

(b) the amounts (if any) paid on the shares since the PDF acquired them.

20(5)   [Definition]  

In this section:

"pre-owned shares"
means shares that were issued or allotted to a person other than the PDF, but does not include any such shares that:

(a) were issued:

(i) to an underwriter or sub-underwriter of the share issue; or

(ii) to a person for the purpose of being offered for sale; and

(b) were still held by the underwriter, sub-underwriter or person immediately before being acquired by the PDF.