Corporations Act 2001
CCH note - modifying legislative instruments: The application of Ch 6 is affected by the following legislative instruments that commenced or were amended on or after 1 January 2022: the ASIC Corporations (Takeover Bids) Instrument 2023/683; the ASIC Corporations (Warrants: Relevant Interests and Associations) Instrument 2023/687; the ASIC Corporations (Replacement Bidder ' s and Target ' s Statements) Instrument 2023/688; and the ASIC Corporations (Relief to Facilitate Admission of Exchange Traded Funds) Instrument 2024/147.
For other legislative instruments or class orders before 1 January 2022 that affect the application of Ch 6, 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.
Note: This Chapter only applies to acquisitions of interests in a CCIV if the CCIV is a listed company: see Division 1 of Part 8B.7 .
CCH note: This provision is modified by legislative instruments. See the CCH note at the end of the provision for details.
A bidder ' s statement must include the following: (a) the identity of the bidder; (b) the date of the statement; (c) if the target is a company or body - details of the bidder ' s intentions regarding:
(i) the continuation of the business of the target; and
(ii) any major changes to be made to the business of the target, including any redeployment of the fixed assets of the target; and
(d) if the target is a registered scheme - details of the bidder ' s intentions regarding:
(iii) the future employment of the present employees of the target;
(i) the continued operation of the scheme; and
(ii) any major changes to be made to the operation of the scheme, including any redeployment of scheme property; and
(e) for an off-market bid - a statement that the bidder ' s statement has been lodged with ASIC but that ASIC takes no responsibility for the content of the statement; (f) in relation to the cash consideration (if any) offered under the bid - details of:
(iii) any plans to remove the current responsible entity and appoint a new responsible entity;
(i) the cash amounts (if any) held by the bidder for payment of the consideration; and
(ii) the identity of any other person who is to provide, directly or indirectly, cash consideration from that person ' s own funds; and
(g) if any securities (other than managed investment products) are offered as consideration under the bid and the bidder is:
(iii) any arrangements under which cash will be provided by a person referred to in subparagraph (ii);
(i) the body that has issued or will issue the securities; or
all material that would be required for a prospectus for an offer of those securities by the bidder under whichever of the following is applicable:
(ii) a person who controls that body;
(iii) sections 710 to 713 ;
(ga) if any managed investment products are offered as consideration under the bid and the bidder is:
(iv) sections 713C to 713E ;
(i) the responsible entity of the registered scheme; or
all material that would be required by section 1013C to be included in a Product Disclosure Statement given to a person in an issue situation in relation to those managed investment products; (h) if the bidder or an associate provided, or agreed to provide, consideration for a security in the bid class under a purchase or agreement during the 4 months before the date of the bid - the following information about the consideration:
(ii) a person who controls the responsible entity of the registered scheme;
(i) to the extent to which the consideration is a cash sum - the amount per security of the cash sum;
(ii) to the extent to which the consideration is quoted securities - the market price per security of those securities;
(i) if, during the period of 4 months before the date of the bid, the bidder or an associate gave, or offered to give or agreed to give a benefit to another person and the benefit was likely to induce the other person, or an associate, to:
(iii) to the extent to which the consideration is neither a cash sum nor a quoted security - the value per security of that consideration;
(i) accept an offer under the bid; or
and the benefit is not offered to all holders of securities in the bid class under the bid - details of the benefit; (j) if the bid is to extend to securities that come to be in the bid class during the offer period due to the conversion of or exercise of rights attached to other securities (see subsection 617(2) ) - a statement to that effect; (k) for an off-market bid - the following details in relation to each class of securities in the target:
(ii) dispose of securities in the bid class;
(i) the total number of securities in the class;
(l) for an off-market bid - the bidder ' s voting power in the company; (m) any other information that:
(ii) the number of securities in the class that the bidder had a relevant interest in immediately before the first offer is sent (expressed as a number of securities or as a percentage of the total number of securities in the class);
(i) is material to the making of the decision by a holder of bid class securities whether to accept an offer under the bid; and
(ii) is known to the bidder; and
(iii) does not relate to the value of securities offered as consideration under the bid.
The information that the bidder must disclose under subparagraph (k)(i) and paragraph (l) must be only as up-to-date as it is reasonable to expect in the circumstances. The bidder does not have to disclose information under paragraph (m) if it would be unreasonable to require the bidder to do so because the information had previously been disclosed to the holders of bid class securities.
Note: Paragraph (b) - See subsection 637(2) for the date of the statement.
[ CCH Note: S 636(1) will be amended by No 69 of 2020, s 3, Sch 1[993] and [ 994], by substituting " the Registrar " for " ASIC " (first occurring) in para (e) and " neither ASIC nor the Registrar takes " for " ASIC takes no " in para (e) (effective 1 July 2026 or a day or days to be fixed by Proclamation).]
[ CCH Note: S 636(1A) will be inserted by No 69 of 2020, s 3, Sch 1[995] (effective 1 July 2026 or a day or days to be fixed by Proclamation). S 636(1A) will read:
636(1A)
Lodgement of the bidder ' s statement must meet any requirements of the data standards.]
Expert ' s report on non-cash consideration provided for bid class securities in last 4 months
636(2)
If the bidder ' s statement includes details of the value per share of consideration under subparagraph (1)(h)(iii) , the statement must include, or be accompanied by, a report by an expert that states whether, in the expert ' s opinion, the value stated is fair and reasonable and gives the reasons for forming that opinion.
Note: Subsections 648A(2) and (3) provide for the independence of the expert and disclosure of any association between the bidder and the expert or the target and the expert. A contravention of one of those subsections results in the bidder ' s statement not complying with this subsection.
Consent of person to whom statement attributed
636(3)
The bidder ' s statement may only include, or be accompanied by, a statement by a person, or a statement said in the bidder ' s statement to be based on a statement by a person, if: (a) the person has consented to the statement being included in the bidder ' s statement, or accompanying it, in the form and context in which it is included; and (b) the bidder ' s statement states that the person has given this consent; and (c) the person has not withdrawn this consent before the bidder ' s statement is lodged with ASIC.
[ CCH Note: S 636(3) will be amended by No 69 of 2020, s 3, Sch 1[996], by substituting " the Registrar " for " ASIC " in para (c) (effective 1 July 2026 or a day or days to be fixed by Proclamation).]
636(4)
The bidder must keep the consent.
Strict liability offences
636(5)
An offence based on subsection (3) or (4) is an offence of strict liability.
Note: For strict liability , see section 6.1 of the Criminal Code .
CCH Note - modifying legislative instruments: Section 636 is modified by the following legislative instruments that commenced or were amended on or after 1 January 2022: the ASIC Corporations (Takeover Bids) Instrument 2023/683.
For modifying legislative instruments or class orders before 1 January 2022, 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.
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