Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

PART 7.3 - LICENSING OF CLEARING AND SETTLEMENT FACILITIES  

Division 2 - Regulation of CS facility licensees  

Subdivision E - Matters relating to Reserve Bank recapitalisation directions  

SECTION 823N   RECAPITALISATION DIRECTIONS - DETERMINATION OF THE FAIR VALUE OF SHARES OR RIGHTS BY AN EXPERT  

Determining the fair value of shares

823N(1)    
In determining the fair value for each share in a CS facility licensee for the purposes of paragraph 823M(2)(a) , the expert must:

(a)    first, assess the value of the licensee as a whole in accordance with the assumptions (if any) notified to the expert under subsection (3) of this section for the valuation of the licensee; and

(b)    second, allocate that value among the classes of shares in the licensee that:

(i) have been issued; or

(ii) the Reserve Bank proposes to direct be issued (taking into account the relative financial risk, and voting and distribution rights, of the classes); and

(c)    third, allocate the value of each class pro rata among the shares in that class that:

(i) have been issued; or

(ii) the Reserve Bank proposes to direct be issued (without allowing a premium or applying a discount for particular shares in that class).

Determining the fair value of rights

823N(2)    
In determining the fair value for each right to acquire shares in a CS facility licensee for the purposes of paragraph 823M(2)(a) , the expert must act in accordance with the assumptions (if any) notified to the expert under subsection (3) of this section for the valuation of that right.

Ministerial or Reserve Bank assumptions

823N(3)    
The Minister or the Reserve Bank may give written notice of the following to the expert:

(a)    assumptions for the valuation of the CS facility licensee;

(b)    assumptions for the valuation of rights to acquire shares in the CS facility licensee.

823N(4)    
An entity who gave assumptions under subsection (3) may, by further written notice given to the expert, revoke, but not vary, those assumptions.

823N(5)    
Ministerial assumptions prevail over Reserve Bank assumptions to the extent of any inconsistency.

823N(6)    
A notice given under subsection (3) or (4) is not a legislative instrument.