Corporations Act 2001

CHAPTER 6 - TAKEOVERS  

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 .

PART 6.5 - THE TAKEOVER PROCEDURE  

Division 3 - The target ' s response  

SECTION 640   EXPERT ' S REPORT TO ACCOMPANY TARGET ' S STATEMENT IF BIDDER CONNECTED WITH TARGET  

640(1)    
If:

(a)    the bidder ' s voting power in the target is 30% or more; or

(b)    for a bidder who is, or includes, an individual - the bidder is a director of the target; or

(c)    for a bidder who is, or includes, a body corporate - a director of the bidder is a director of the target;

a target ' s statement given in accordance with section 638 must include, or be accompanied by, a report by an expert that states whether, in the expert ' s opinion, the takeover offers are 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 target and the expert or the bidder and the expert. A contravention of one of those subsections results in the target ' s statement not complying with this subsection.

640(2)    
In determining whether the bidder ' s voting power in the target is 30% or more, calculate the bidder ' s voting power at the time the bidder ' s statement is sent to the target.

640(3)    

An offence based on subsection (1) is an offence of strict liability.

Note: For strict liability , see section 6.1 of the Criminal Code .