THE CORPORATIONS LAW

CHAPTER 6 - TAKEOVERS

PART 6.1 - PROHIBITED ACQUISITIONS OF RELEVANT INTERESTS IN VOTING SHARES

SECTION 610   VOTING POWER IN A BODY CORPORATE  

610(1)  Person's voting power in a body corporate.  

A person's voting power in a body corporate is:

            Persons's and associates' votes
            ------------------------------- x 100
             Total votes in body corporate
      

where:

person's and associates' votes is the total number of votes attached to all the voting shares in the body corporate (if any) that the person or an associate has a relevant interest in.

total votes in body corporate is the total number of votes attached to all voting shares in the body corporate.

Note:

Even if a person's relevant interest in voting shares is based on control over disposal of the shares (rather than control over voting rights attached to the shares), their voting power in the body corporate is calculated on the basis of the number of votes attached to those shares.

610(2)  Counting votes.  

For the purposes of this section, the number of votes attached to a voting share in a body corporate is the maximum number of votes that can be cast in respect of the share on a poll:

(a)  if the election of directors is determined by the casting of votes attached to voting shares - on the election of a director of the body corporate; or

(b)  if the election of directors is not determined by the casting of votes attached to voting shares - on the adoption of a constitution for the body corporate or the amendment of the body corporate's constitution.

Note:

The Corporations and Securities Panel may decide that the setting or varying of voting rights in a way that affects control of a body corporate is unacceptable circumstances under section 657A.

610(3)  [Effect of transaction or acquisition]  

If:

(a)  a transaction in relation to, or an acquisition of an interest in, securities occurs; and

(b)  before the transaction or acquisition, a person did not have a relevant interest in particular voting shares but an associate of the person did have a relevant interest in those shares; and

(c)  because of the transaction or acquisition, the person acquires a relevant interest in those shares;

then, for the purposes of applying section 606 to the transaction or acquisition, the person's voting power is taken to have increased because of the transaction or acquisition from what it would have been before the transaction or acquisition if the votes attached to those shares were disregarded to what it was after the transaction or acquisition (taking the votes attached to those shares into account).

610(4)  [Calculation of voting power]  

Disregard the operation of section 613 and paragraph 614(1)(b) in working out a person's voting power in a body corporate.