CORPORATIONS ACT 2001
Note: See section 1465A.
The reference to
is a reference to the former Corporations Law.]
CLAUSE 34 -
UNCONSCIONABLE CONDUCT IN RELATION TO DEMUTUALISATIONS
A person must not engage in:
(a) conduct that is, in all the circumstances, unconscionable; or
(b) conduct that is misleading or deceptive or is likely to mislead or deceive;
in relation to:
(c) a modification of the constitution of an unlisted company that is a modification to which this Part applies; or
(d) anything done in reliance on, in conjunction with or in connection with the modification; or
(e) a share issue to which this Part applies.
In determining whether a person has engaged in conduct that contravenes paragraph (1)(a), have regard to:
(a) whether the person, or someone acting for the person, exerted undue influence or pressure on, or used unfair tactics against, members of the company; and
(b) whether the person, or someone acting for the person, engaged in conduct that resulted in a member or someone else gaining, or being in a position to gain, a benefit that the members generally did not, or would not be in a position to, gain.
This subclause does not limit subclause (1).
A person who contravenes subclause (1) is not guilty of an offence.