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 837B   COMPULSORY TRANSFER OF BUSINESS OF BODY CORPORATE  

Total or partial transfer of business of CS facility licensee

837B(1)    
The Reserve Bank may, in writing, make a determination that there is to be a total or partial transfer of business of a CS facility licensee from the 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 .

Total or partial transfer of business of related body corporate

837B(2)    
The Reserve Bank may, in writing, make a determination that there is to be a total or partial transfer of business from 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 total or partial transfer of business from 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 business 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

837B(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 total or a partial transfer; and

(iii) if it will be a partial transfer - an indication of the part of the target body's business that is to be transferred; and

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

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

Notice

837B(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.