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 9 - Other matters  

Subdivision D - Other matters  

SECTION 849CB   EXPERT REPORT FOR ACQUISITION OR DISPOSAL OF ASSETS  

849CB(1)    
This section applies if:

(a)    a statutory manager of a body corporate proposes to:

(i) take action under subsection 833D(1) (recapitalisation actions); or

(ii) otherwise take action on behalf of the body corporate to dispose of a business of the body corporate; or

(iii) otherwise take action on behalf of the body corporate to acquire or dispose of an asset (excluding an action to be taken in the ordinary course of the body corporate ' s business); or

(b)    the Reserve Bank proposes to make:

(i) a determination under section 837A that there is to be a transfer of shares in the body corporate; or

(ii) a determination under section 837B that there is to be a transfer of business of the body corporate; or

(c)    the Reserve Bank proposes to direct a body corporate under subsection 840A(1) :

(i) to recapitalise; or

(ii) to take other action to dispose of a business of the body corporate; or

(iii) to take other action to acquire or dispose of an asset (excluding an action to be taken in the ordinary course of the body corporate ' s business);

or to vary a direction under subsection 840B(1) such that, following the variation, the direction will include a direction of the kind mentioned in subparagraph (i) , (ii) or (iii) of this paragraph.

Note: For example, a report may be required for some actions taken under section 833A .

Expert report

849CB(2)    
Before determining terms for an action referred to in subsection (1) , the statutory manager or Reserve Bank (as the case may be) must obtain, and consider, a report from an expert on:

(a)    if the action is an action referred to in paragraph (1)(a) or (c) - the fair value of the business or asset concerned; or

(b)    if the action is an action referred to in paragraph (1)(b) - the fair value of the business, part of the business or shares to be transferred.

849CB(3)    
The expert must not be an associate of:

(a)    the body corporate; or

(b)    if the action is to be taken by a statutory manager (other than the Reserve Bank) - the statutory manager.

Publication

849CB(4)    
The Reserve Bank may publish details of, or relating to, the report.

Exemption from obtaining expert report

849CB(5)    
Despite subsection (2) , the Reserve Bank need not obtain the report if the Reserve Bank reasonably believes that obtaining the report is likely to pose a threat to:

(a)    the stability of the financial system in Australia; or

(b)    the continuity of one or more clearing and settlement facility services that are critical to the functioning of the financial system in Australia.

Contravention does not invalidate act

849CB(6)    
A contravention of subsection (2) does not affect the validity of anything referred to in subsection (1) .