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 7.3B - CRISIS RESOLUTION FOR CS FACILITY LICENSEES  

Division 4 - Compulsory transfer of business or shares  

Subdivision A - Compulsory transfer of business or shares of body corporate in relation to CS facility licensee in crisis  

SECTION 837A   COMPULSORY TRANSFER OF SHARES IN BODY CORPORATE  

Transfer of all or part of the shares in a CS facility licensee

837A(1)    
The Reserve Bank may, in writing, make a determination that there is to be a transfer of all or part of the shares in a CS facility licensee (the target body ) to another body corporate (the receiving body ) if:

(a)    the Reserve Bank reasonably believes that the transfer is appropriate to manage or respond to a condition in section 831A being satisfied in relation to the licensee; and

(b)    the Minister consents to the transfer in writing; and

(c)    the Reserve Bank is satisfied that the board of the receiving body consents to the transfer.

Note: An expert report on fair value may be required before taking action: see section 849CB .

Transfer of all or part of the shares in a related body corporate

837A(2)    
The Reserve Bank may, in writing, make a determination that there is to be a transfer of all or part of the shares in a body corporate (the target body ) to another body corporate (the receiving body ) if:

(a)    the Reserve Bank has made, or intends to make, a determination under subsection (1) that there is to be a transfer of shares in a CS facility licensee to another body corporate; and

(b)    the Reserve Bank reasonably believes that the transfer to the receiving body is appropriate to manage or respond to a condition in section 831A being satisfied in relation to the licensee; and

(c)    the target body is, or before the transfer of shares from the licensee referred to in paragraph (a) of this subsection was, a related body corporate of the licensee; and

(d)    the target body is incorporated in Australia; and

(e)    the Minister consents to the transfer in writing; and

(f)    the Reserve Bank is satisfied that the board of the receiving body consents to the transfer.

Note: An expert report on fair value may be required before taking action: see section 849CB .

Determination

837A(3)    
A determination made under subsection (1) or (2) must include:

(a)    particulars of the transfer, including:

(i) the names of the target body and the receiving body; and

(ii) whether it will be a transfer of all or part of the shares; and

(iii) if it will be a transfer of part of the shares - an indication of the shares that are to be transferred; and

(b)    a statement of the reasons why the determination has been made.

837A(4)    
A determination made under subsection (1) or (2) is not a legislative instrument.

Notice

837A(5)    
The Reserve Bank must give a copy of a determination made under subsection (1) or (2) to the target body and the receiving body.