A T O home
Legal Database
Search   
for 
 
Access the database 
Browse database
Searches  
View last document
Quick access 
View legislation
View a document
Email Cross Reference Material Previous/Next Section Contents Previous/Next Result
Printable version
Printable
version

CORPORATIONS ACT 2001

CHAPTER 6 - TAKEOVERS  

PART 6.4 - FORMULATING THE TAKEOVER OFFER  

Division 2 - Consideration for the offer  

SECTION 623  COLLATERAL BENEFITS NOT ALLOWED  

623(1)  [Benefits during offer period]  


A bidder, or an associate, must not, during the offer period for a takeover bid, give, offer to give or agree to give a benefit to a person if:


(a) the benefit is likely to induce the person or an associate to:


(i) accept an offer under the bid; or

(ii) dispose of securities in the bid class; and


(b) the benefit is not offered to all holders of securities in the bid class under the bid.

623(1A)  [Strict liability offence]  

 View history reference

An offence based on subsection (1) is an offence of strict liability.

Note: For strict liability, see section 6.1 of the Criminal Code.

623(2)  [Receipt of benefit]  


For the purpose of this section, a person does not receive a benefit that is not offered under a takeover bid merely because the person sells bid class securities on-market and the takeover bid is an off-market bid or a conditional bid.

623(3)  [Limits on prohibition]  


This section does not prohibit:


(a) the variation of a takeover offer as provided by sections 649A to 650D; or


(b) an acquisition of securities through an on-market transaction; or


(c) simultaneous takeover bids for different classes of securities in the target.

 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
Top of page
More information on page