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 5 - Directions  

Subdivision A - Directions to manage or respond to crisis  

SECTION 840A   RESERVE BANK ' S DIRECTIONS POWER - MANAGE OR RESPOND TO CRISIS  

840A(1)    
The Reserve Bank may, in writing, give a body corporate a direction to do, or refrain from doing, specified acts or things, if:

(a)    the body corporate:

(i) is a CS facility licensee; or

(ii) is a related body corporate of a CS facility licensee and is incorporated in Australia; or

(iii) was a related body corporate of a CS facility licensee before a transfer of business or shares under this Part and is incorporated in Australia; and

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

Note: An expert report on fair value may be required before giving the direction: see section 849CB .

840A(2)    
The direction may deal with the time by which, or period during which, it is to be complied with.

840A(3)    
The body corporate must comply with the direction.

Note: Failure to comply with this subsection is an offence: see subsection 1311(1) .

840A(4)    
If the body corporate fails to comply with the direction, the Reserve Bank may apply to the Court for, and the Court may make, an order that the body corporate comply with the direction.

Compliance despite other laws etc.

840A(5)    
The body corporate may do, or refrain from doing, an act or thing to comply with the direction despite all of the following:

(a)    this Act;

(b)    the body corporate ' s constitution;

(c)    any operating rules or procedures of a licensed CS facility of which the body corporate is the licensee;

(d)    any arrangement to which the body corporate is party;

(e)    any listing rules of a financial market in whose official list the body corporate is included.

840A(6)    
Paragraph (5)(c) does not apply in relation to a direction under subsection (1) to amend the operating rules of a licensed CS facility of which the body corporate is the licensee.