THE CORPORATIONS LAW

CHAPTER 6 - TAKEOVERS

PART 6.10 - REVIEW AND INTERVENTION

Division 2 - The Corporations and Securities Panel

Subdivision B - Unacceptable circumstances

SECTION 657D   ORDERS THAT PANEL MAY MAKE FOLLOWING DECLARATION  

657D(1)  [Power to make orders]  

The Panel may make an order under subsection (2) if it has declared circumstances to be unacceptable under section 657A. It must not make an order if it is satisfied that the order would unfairly prejudice any person. Before making the order, the Panel must give:

(a)  each person to whom a proposed order relates; and

(b)  each party to the proceedings; and

(c)  ASIC;

an opportunity to make submissions to the Panel about the matter.

657D(2)  [Types of orders]  

The Panel may make any order (including a remedial order but not including an order directing a person to comply with a requirement of Chapter 6, 6A, 6B or 6C) that it thinks appropriate to:

(a)  protect the rights or interests of any person affected by the circumstances; or

(b)  ensure that a takeover bid or proposed takeover bid in relation to securities proceeds (as far as possible) in a way that it would have proceeded if the circumstances had not occurred; or

(c)  specify in greater detail the requirements of an order made under this subsection; or

(d)  determine who is to bear the costs of the parties to the proceedings before the Panel;

regardless of whether it has previously made an order under this subsection or section 657E in relation to the declaration. The Panel may also make any ancillary or consequential orders that it thinks appropriate.

Note:

Section 9 defines remedial order .

657D(3)  [Power to vary, revoke or suspend order]  

The Panel may vary, revoke or suspend an order made under this section. Before doing so, it must give an opportunity to make submissions in relation to the matter to:

(a)  each person to whom the order is directed; and

(b)  each party to the proceedings in which the order was made; and

(c)  ASIC.

657D(4)  [Obligation to notify]  

If the Panel makes an order under this section, the Panel must give a copy of the order, and a written statement of its reasons for making the order, to:

(a)  each party to the proceedings before the Panel; and

(b)  each person to whom the order is directed if they are not a party to the proceedings; and

(c)  for an order relating to specified securities of a company - the company; and

(d)  ASIC.

The Panel must also publish the order in the Gazette. The order takes effect as soon as it is made and not when all the requirements of this subsection are met.

657D(5)  [Exercise of rights]  

If the Panel makes an order of the kind referred to in paragraph (j) of the definition of remedial order , the exercise of rights attached to shares is to be disregarded as provided in the order.

657D(6)  [Effect on agreement or offer]  

If the Panel makes an order of the kind referred to in paragraph (k) of the definition of remedial order , then, by force of this subsection, the agreement or offer specified in the order is cancelled, or becomes voidable, as from the making of the order or any later time that is specified in the order.