CORPORATIONS ACT 2001
Note: See section 1465A.
[CCH Note: The reference to "section 1465A" is a reference to the former Corporations Law.]
|PART 5 - DEMUTUALISATIONS
CLAUSE 30 - ASIC'S EXEMPTION POWER
If ASIC is satisfied that a company does not have a mutual structure, it may exempt the company from this Part.
If ASIC is satisfied that:
(a) a proposed modification of the constitution of a company will not result in or allow a modification of the mutual structure of the company; or
(b) an issue of shares would not result in or allow a modification of the mutual structure of the company;
it may exempt the company from this Part in relation to the proposed modification or share issue.
In determining whether the company has a mutual structure, ASIC may take into account:
(a) the particular structure, circumstances and history of the company; and
(i) each customer of the company (for example an account holder, mortgagor or policy holder) is required to be a member of the company; or
(ii) each member (or joint membership) has only 1 vote; and
(c) any other relevant matter in relation to the company or its members.
In determining whether the proposed modification or share issue will result in or allow a modification of the mutual structure of the company, ASIC must take into account whether the proposed modification or share issue would have the effect of converting the company into a company run for the purpose of yielding a return to shareholders.
An exemption under subclause (2) may apply unconditionally or subject to specified conditions. A person to whom a condition specified in an exemption applies must comply with the condition. The Court may order the person to comply with the condition in a specified way. Only ASIC may apply to the Court for the order.
The exemption must be in writing and ASIC must publish notice of it in the Gazette.
For the purposes of this clause, the provisions of this Part include regulations made for the purposes of this Part.