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CORPORATIONS ACT 2001

CHAPTER 6C - INFORMATION ABOUT OWNERSHIP OF LISTED COMPANIES AND MANAGED INVESTMENT SCHEMES  

PART 6C.1 - SUBSTANTIAL HOLDING INFORMATION  

SECTION 671B  INFORMATION ABOUT SUBSTANTIAL HOLDINGS MUST BE GIVEN TO COMPANY, RESPONSIBLE ENTITY AND RELEVANT MARKET OPERATOR  

671B(1)  Requirement to give information.  

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A person must give the information referred to in subsection (3) to a listed company, or the responsible entity for a listed registered managed investment scheme, if:


(a) the person begins to have, or ceases to have, a substantial holding in the company or scheme; or


(b) the person has a substantial holding in the company or scheme and there is a movement of at least 1% in their holding; or


(c) the person makes a takeover bid for securities of the company or scheme.

The person must also give the information to each relevant market operator.

Note 1: Section 9 defines substantial holding and associate.

Note 2: The information must be given even if the situation changes by the time the information is to be given.

671B(1A)  [Strict liability offence]  

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

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

671B(2)  [``movement of at least 1%'']  


For the purposes of this section, there is a movement of at least 1% in a person's holding if the percentage worked out using the following formula increases or decreases by 1 or more percentage points from the percentage they last disclosed under this Part in relation to the company or scheme:
   Person's and associates' votes   
Total votes in company or scheme
×100

where:

person's and associates' votes is the total number of votes attached to all the voting shares in the company or interests in the scheme (if any) that the person or an associate has a relevant interest in.

total votes in company or scheme is the total number of votes attached to all voting shares in the company or interests in the scheme.

Note: Subsection (7) expands the normal concept of relevant interest to take account of market traded options and conditional agreements.

671B(3)  Information that must be given.  


The information to be given is:


(a) the person's name and address; and


(b) details of their relevant interest in:


(i) voting shares in the company; or

(ii) interests in the scheme; and


(c) details of any relevant agreement through which they would have a relevant interest in:


(i) voting shares in the company; or

(ii) interests in the scheme; and


(d) the name of each associate who has a relevant interest in voting shares in the company or interests in the scheme, together with details of:


(i) the nature of their association with the associate; and

(ii) the relevant interest of the associate; and

(iii) any relevant agreement through which the associate has the relevant interest; and


(e) if the information is being given because of a movement in their holding - the size and date of that movement; and


(f) if the information is being given because a person has ceased to be an associate - the name of the person; and


(g) any other particulars that are prescribed.

Note: Subsection (7) expands the normal concept of relevant interest to take account of market traded options and conditional agreements.

671B(4)  Information to be in prescribed form and accompanied by certain documents.  


The information must be given in the prescribed form and must be accompanied by:


(a) a copy of any document setting out the terms of any relevant agreement that:


(i) contributed to the situation giving rise to the person needing to provide the information; and

(ii) is in writing and readily available to the person; and


(b) a statement by the person giving full and accurate details of any contract, scheme or arrangement that:


(i) contributed to the situation giving rise to the person needing to provide the information; and

(ii) is not both in writing and readily available to the person.

If the person is required to give a copy of a contract, scheme or arrangement, the copy must be endorsed with a statement that the copy is a true copy.

671B(5)  [Exception in relation to documents]  

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The information does not need to be accompanied by the documents referred to in subsection (4) if the transaction that gives rise to the person needing to provide the information takes place on a prescribed financial market.

671B(6)  Deadline for giving information.  


The person must give the information:


(a) within 2 business days after they become aware of the information; or


(b) by 9.30 am on the next trading day of the relevant financial market after they become aware of the information if:

(i) a takeover bid is made for voting shares in the company or voting interests in the scheme; and

(ii) the person becomes aware of the information during the bid period.
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671B(7)  Relevant interests - exchange traded options and conditional agreements.  

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For the purposes of this section, a person has a relevant interest in securities if the person would have a relevant interest in the securities but for subsection 609(6) (market traded options) or 609(7) (conditional agreements).


 



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