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 3 - STATUTORY MANAGEMENT  

Subdivision B - Powers of statutory manager  

SECTION 833D   POWERS TO FACILITATE RECAPITALISATION  

833D(1)    
A statutory manager of a body corporate may do one or more of the following acts on terms determined by the statutory manager, at the direction of or with the written consent of the Reserve Bank:

(a)    increase the body corporate ' s level of share capital to a level specified in the determination;

(b)    issue one or more classes of shares, or one or more specified classes of rights to acquire shares, in the body corporate, being a class or classes specified in the determination;

(c)    issue capital instruments;

(d)    acquire, cancel or sell:

(i) shares in the body corporate; or

(ii) rights to acquire shares in the body corporate;

(e)    reduce the body corporate ' s share capital;

(f)    vary or cancel rights or restrictions attached to shares in a class of shares in the body corporate.

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

Notice to members

833D(2)    
As soon as practicable after the statutory manager does an act under subsection (1) , the statutory manager must give a written notice:

(a)    to the persons who were members of the body just before the act; and

(b)    that:

(i) identifies the act; and

(ii) explains the effect of the act on the members ' interests.

833D(3)    
A contravention of subsection (2) does not affect the validity of anything done under subsection (1) .

This section does not permit transfers of shares or business

833D(4)    
This section does not permit the statutory manager to effect a transfer of all or part of the shares in the body corporate, or a total or partial transfer of the business of the body corporate, other than in accordance with Division 4 (compulsory transfers).

Exercise of powers despite other laws etc.

833D(5)    
A statutory manager may do an act under subsection (1) 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.