CORPORATIONS ACT 2001 - SECT 601DJ ASIC's power to direct a registered name be changed

Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

CORPORATIONS ACT 2001 - SECT 601DJ

ASIC's power to direct a registered name be changed

(1) ASIC may direct a registered Australian body or registered foreign company in writing to change the name under which the body or company is registered within 2 months if:

(a) the name should not have been registered; or

(b) the body or company has breached a condition under subsection 601DC(3) on the availability of the name; or

(d) the body or company has breached a condition on a consent given under subsection 601DC(4); or

(e) the body or company ceases to be permitted to use or assume the name (as referred to in paragraph 601DC(4)(b)).

(2) The body or company must comply with the direction within 2 months after being given it by doing everything necessary to change its name for the purposes of this Act under section 601DH.

(3) If the body or company does not comply with subsection (2), ASIC may change the body's or company's name to a name that includes its ARBN by altering the details of the body's or company's registration to reflect the change.

(4) For the purposes of this Act, a change of name under subsection (3) takes effect when ASIC alters the details of the body's or foreign company's registration.

Note: ASIC must issue a new certificate reflecting the name change (see section 601CU).

Corporations Act 2001

Contents

Chapter 5C--Managed investment schemes 1

Part 5C.1--Registration of managed investment schemes 1

601EA... Applying for registration .................................................................... 1

601EB... Registration of managed investment scheme ...................................... 1

601EC... All documents etc. lodged with ASIC to bear ARSN or ABN ........... 2

601ED... When a managed investment scheme must be registered .................... 2

601EE... Unregistered schemes may be wound up ........................................... 4

Part 5C.2--The responsible entity 5

Division 1--Responsibilities and powers 5

601FA... Responsible entity to be public company and hold Australian financial services licence 5

601FB... Responsible entity to operate scheme ................................................ 5

601FC... Duties of responsible entity ............................................................... 6

601FD... Duties of officers of responsible entity .............................................. 7

601FE... Duties of employees of responsible entity ........................................ 8

601FF... Surveillance checks by ASIC .............................................................. 9

601FG... Acquisition of interest in scheme by responsible entity .................... 9

601FH... Liquidator etc. of responsible entity entitled to exercise indemnity rights 10

Division 2--Changing the responsible entity 11

601FJ.... Changes only take effect when ASIC alters record of registration ... 11

601FK... Requirements of section 601FA must be met .................................. 11

601FL... Retirement of responsible entity ...................................................... 11

601FM.. Removal of responsible entity by members ..................................... 12

601FN... ASIC or scheme member may apply to Court for appointment of temporary responsible entity 13

601FP... Appointment of temporary responsible entity by Court ................ 13

601FQ... Temporary responsible entity to take steps for appointment of new responsible entity 13

Division 3--Consequences of change of responsible entity 15

601FR... Former responsible entity to hand over books and provide reasonable assistance 15

601FS.... Rights, obligations and liabilities of former responsible entity ........ 15

601FT... Effect of change of responsible entity on documents etc. to which former responsible entity is party 15

Part 5C.3--The constitution 17

601GA.. Contents of the constitution ............................................................. 17

601GB.. Constitution must be legally enforceable .......................................... 18

601GC.. Changing the constitution ................................................................. 18

Part 5C.4--The compliance plan 19

601HA.. Contents of the compliance plan ...................................................... 19

601HB.. Compliance plan may incorporate provisions from another scheme's plan 20

601HC.. Directors must sign lodged copy of compliance plan ....................... 20

601HD.. ASIC may require further information about compliance plan ........ 20

601HE... Changing the compliance plan .......................................................... 20

601HF... ASIC may require consolidation of compliance plan to be lodged ... 21

601HG.. Audit of compliance plan ................................................................. 21

601HH.. Removal and resignation of auditors ................................................. 26

601HI.... Action on change of auditor of compliance plan .............................. 27

Part 5C.5--The compliance committee 28

601JA... When is a compliance committee required? ...................................... 28

601JB.... Membership of compliance committee ............................................ 29

601JC.... Functions of compliance committee ................................................. 30

601JD... Duties of members ............................................................................ 30

601JE.... Compliance committee members have qualified privilege in certain cases 31

601JF.... When can responsible entity indemnify compliance committee members? 31

601JG... When can responsible entity pay insurance premiums for compliance committee members? 32

601JH... Proceedings of compliance committee .............................................. 33

601JJ..... Disclosure of interests ...................................................................... 33

Part 5C.6--Members' rights to withdraw from a scheme 34

601KA.. Members' rights to withdraw ........................................................... 34

601KB.. Non‑liquid schemes--offers ............................................................. 35

601KC.. Non‑liquid schemes--only one withdrawal offer to be open at any time 36

601KD.. Non‑liquid schemes--how payments are to be made ...................... 36

601KE... Non‑liquid schemes--responsible entity may cancel withdrawal offer 36

Part 5C.7--Related party transactions 37

601LA... Chapter 2E applies with modifications ............................................ 37

601LB... Replacement section 207 .................................................................. 37

601LC... Replacement section 208 .................................................................. 37

601LD... Omission of sections 213, 214 and 224 ............................................ 39

601LE... Modification of section 225 ............................................................. 39

Part 5C.8--Effect of contraventions (civil liability and voidable contracts) 40

601MA. Civil liability of responsible entity to members ............................... 40

601MB. Voidable contracts where subscription offers and invitations contravene this Act 40

Part 5C.9--Winding up 42

601NA.. Winding up required by scheme's constitution ................................ 42

601NB.. Winding up at direction of members ................................................. 42

601NC.. Winding up if scheme's purpose accomplished or cannot be accomplished 42

601ND.. Winding up ordered by Court ........................................................... 43

601NE... The winding up of the scheme .......................................................... 43

601NF... Other orders about winding up ......................................................... 44

601NG.. Unclaimed money to be paid to ASIC .............................................. 45

Part 5C.10--Deregistration 46

601PA... Deregistration--voluntary ................................................................ 46

601PB... Deregistration by ASIC .................................................................... 46

601PC... Reinstatement ................................................................................... 48

Part 5C.11--Exemptions and modifications 49

601QA.. ASIC's power to make exemption and modification orders ............. 49

601QB.. Modification by regulations ............................................................. 50

Chapter 6--Takeovers 51

602........ Purposes of Chapter ......................................................................... 51

602A..... Substantial interest concept .............................................................. 52

603........ Chapter extends to some listed bodies that are not companies ........ 52

604........ Chapter extends to listed managed investment schemes .................. 52

605........ Classes of securities .......................................................................... 53

Part 6.1--Prohibited acquisitions of relevant interests in voting shares 54

606........ Prohibition on certain acquisitions of relevant interests in voting shares 54

607........ Effect on transactions ....................................................................... 56

608........ Relevant interests in securities ......................................................... 57

609........ Situations not giving rise to relevant interests .................................. 59

610........ Voting power in a body or managed investment scheme .................. 62

Part 6.2--Exceptions to the prohibition 64

611........ Exceptions to the prohibition ........................................................... 64

612........ Effect of non‑compliance with takeover rules for exceptions 1 to 4 69

613........ Bidder not to exercise voting rights if failure to send bids for off‑market acquisition--exception 2 or 3 69

615........ Treatment of foreign holders under equal access issue--exception 10 69

Part 6.3--The different types of takeover bid 71

616........ Off‑market bids and market bids ...................................................... 71

Part 6.4--Formulating the takeover offer 72

Division 1--General 72

617........ Securities covered by the bid ............................................................ 72

618........ Offers must be for all or a proportion of securities in the bid class . 72

619........ General terms of the offer ................................................................. 73

620........ Off‑market bid (offer formalities) ..................................................... 74

Division 2--Consideration for the offer 76

621........ Consideration offered ....................................................................... 76

622........ Escalation agreements ....................................................................... 77

623........ Collateral benefits not allowed ......................................................... 78

Division 3--The offer period 80

624........ Offer period ...................................................................................... 80

Division 4--Conditional offers 81

625........ Conditional offers--general .............................................................. 81

626........ Maximum acceptance conditions in off‑market bids ........................ 81

627........ Discriminatory conditions not allowed for off‑market bids ............. 82

628........ Conditions requiring payments to officers of target not allowed in off‑market bids 82

629........ Conditions turning on bidder's or associate's opinion not allowed in off‑market bids 83

630........ Defeating conditions ......................................................................... 83

Part 6.5--The takeover procedure 86

Division 1--The overall procedure 86

631........ Proposing or announcing a bid .......................................................... 86

632........ Overview of steps in an off‑market bid ............................................ 87

633........ Detailed steps in an off‑market bid .................................................. 87

634........ Overview of steps in a market bid .................................................... 91

635........ Detailed steps in a market bid .......................................................... 92

Division 2--The bidder's statement 96

636........ Bidder's statement content ............................................................... 96

637........ Bidder's statement formalities .......................................................... 99

Division 3--The target's response 101

638........ Target's statement content ............................................................. 101

639........ Target's statement formalities ........................................................ 102

640........ Expert's report to accompany target's statement if bidder connected with target 103

641........ Target must inform bidder about securities holdings ...................... 104

642........ Expenses of directors of target companies ..................................... 105

Division 4--Updating and correcting the bidder's statement and target's statement 106

643........ Supplementary bidder's statement ................................................. 106

644........ Supplementary target's statement .................................................. 106

645........ Form of supplementary statement ................................................. 107

646........ Consequences of lodging a supplementary statement .................... 108

647........ To whom supplementary statement must be sent ......................... 108

Division 5--General rules on takeover procedure 110

Subdivision A--Experts' reports 110

648A..... Experts' reports .............................................................................. 110

Subdivision B--Sending documents to holders of securities 111

648B..... Address at which bidder may send documents to holders of securities 111

648C..... Manner of sending documents to holders of securities .................. 111

Subdivision C--Effect of proportional takeover approval provisions 111

648D..... Constitution may contain proportional takeover approval provisions 111

648E...... Resolution to be put if proportional bid made ............................... 112

648F...... Effect of rejection of approval resolution ....................................... 113

648G..... Including proportional takeover provisions in constitution ........... 114

648H..... Effect of Subdivision ...................................................................... 117

Part 6.6--Variation of offers 118

Division 1--Market bids 118

649A..... General ............................................................................................ 118

649B..... Market bids--raising bid price ....................................................... 118

649C..... Market bids--extending the offer period ....................................... 118

Division 2--Off‑market bids (express variation by bidder) 120

650A..... General ............................................................................................ 120

650B..... Off‑market bids--consideration offered ......................................... 120

650C..... Off‑market bids--extension of offer period ................................... 122

650D..... Off‑market bids--method of making variation ............................... 122

650E...... Right to withdraw acceptance ........................................................ 123

650F...... Freeing off‑market bids from defeating conditions ......................... 125

650G..... Contracts and acceptances void if defeating condition not fulfilled 125

Division 3--Off‑market bids (automatic variations) 126

651A..... Off‑market bid--effect on bid consideration of purchases made outside bid 126

651B..... How to make an election for new forms of consideration .............. 127

651C..... Returning securities as part of election ........................................... 128

Part 6.7--Withdrawal and suspension of offers 129

652A..... Withdrawal of unaccepted offers under takeover bid ..................... 129

652B..... Withdrawal of takeover offers with ASIC consent ........................ 129

652C..... Withdrawal of market bids ............................................................. 129

Part 6.8--Acceptances 131

653A..... Acceptance of offers made under off‑market bid ........................... 131

653B..... Acceptances by transferees and nominees of offers made under off‑market bid 131

Part 6.9--Other activities during the bid period 133

654A..... Bidder not to dispose of securities during the bid period ............... 133

654B..... Disclosures about substantial shareholdings in listed companies ... 133

654C..... Disclosures about substantial shareholdings in unlisted companies 133

Part 6.10--Review and intervention 135

Division 1--ASIC's power to exempt and modify 135

655A..... ASIC's power to exempt and modify ............................................ 135

655B..... Notice of decision and review rights ............................................... 136

Division 2--The Takeovers Panel 137

Subdivision A--Review of ASIC's exercise of its exemption or modification powers 137

656A..... Review of exercise of exemption or modification powers .............. 137

656B..... Operation and implementation of a decision that is subject to review 138

Subdivision B--Unacceptable circumstances 139

657A..... Declaration of unacceptable circumstances .................................... 139

657B..... When Panel may make declaration ................................................. 141

657C..... Applying for declarations and orders ............................................. 141

657D..... Orders that Panel may make following declaration ........................ 142

657E...... Interim orders ................................................................................. 143

657EA... Internal Panel reviews ..................................................................... 144

657EB... References by Courts ..................................................................... 145

657F...... Offence to contravene Panel order .................................................. 145

657G..... Orders by the Court where contravention or proposed contravention of Panel order 145

657H..... ASIC may publish report about application to Panel or Court ..... 146

Subdivision C--General provisions 147

658A..... Power of Panel where a proceeding is frivolous or vexatious ......... 147

658B..... Evidentiary value of findings of fact by Panel ................................ 147

658C..... Panel's power to make rules ........................................................... 147

658D..... Inconsistency between Panel rules and ASIC exemption or declaration 148

Division 3--Court powers 149

659A..... Panel may refer questions of law to the Court ............................... 149

659AA.. Object of sections 659B and 659C ................................................. 149

659B..... Court proceedings before end of bid period ................................... 149

659C..... Court proceedings after end of bid period ...................................... 151

Chapter 6A--Compulsory acquisitions and buy‑outs 152

660A..... Chapter extends to some listed bodies that are not companies ...... 152

660B..... Chapter extends to listed managed investment schemes ................ 152

Part 6A.1--Compulsory acquisitions and buy‑outs following takeover bid 153

Division 1--Compulsory acquisition of bid class securities 153

661A..... Compulsory acquisition power following takeover bid ................. 153

661B..... Compulsory acquisition notice ....................................................... 155

661C..... Terms on which securities to be acquired ....................................... 156

661D..... Holder may obtain names and addresses of other holders .............. 157

661E...... Holder may apply to Court to stop acquisition ............................. 157

661F...... Signpost--completing the acquisition of the securities .................. 158

Division 2--Compulsory buy‑out of bid class securities 159

662A..... Bidder must offer to buy out remaining holders of bid class securities 159

662B..... Bidder to tell remaining holders of their right to be bought out ...... 159

662C..... Right of remaining holder of securities in the bid class to be bought out 161

Division 3--Compulsory buy‑out of convertible securities 162

663A..... Bidder must offer to buy out holders of convertible securities ...... 162

663B..... Bidder to tell holders of convertible securities of their right to be bought out 162

663C..... Right of holders of convertible securities to be bought out ............ 164

Part 6A.2--General compulsory acquisitions and buy‑outs 165

Division 1--Compulsory acquisition of securities by 90% holder 165

664A..... Threshold for general compulsory acquisition power .................... 165

664AA.. Time limit on exercising compulsory acquisition power ................ 166

664B..... The terms for compulsory acquisition ........................................... 166

664C..... Compulsory acquisition notice ....................................................... 167

664D..... Benefits outside compulsory acquisition procedure ...................... 169

664E...... Holder's right to object to the acquisition ...................................... 170

664F...... The Court's power to approve acquisition .................................... 171

664G..... Signpost--completing the acquisition of the securities .................. 171

Division 2--Compulsory buy‑out of convertible securities by 100% holder 172

665A..... 100% holder must offer to buy out holders of convertible securities 172

665B..... 100% holder to tell holders of convertible securities of their right to be bought out 172

665C..... Right of holders of convertible securities to be bought out ............ 174

Part 6A.3--Completion of compulsory acquisition of securities 175

666A..... Completing the acquisition of securities ......................................... 175

666B..... Statutory procedure for completion ............................................... 176

Part 6A.4--Experts' reports and valuations 177

667A..... Expert's report ............................................................................... 177

667AA.. Expert to be nominated ................................................................... 177

667B..... Expert must not be an associate and must disclose prior dealings and relationships 178

667C..... Valuation of securities .................................................................... 178

Part 6A.5--Records of unclaimed consideration 180

668A..... Company's power to deal with unclaimed consideration for compulsory acquisition 180

668B..... Unclaimed consideration to be transferred to ASIC ....................... 181

Part 6A.6--ASIC powers 182

669........ ASIC's power to exempt and modify ............................................ 182

Chapter 6B--Rights and liabilities in relation to Chapter 6 and 6A matters 183

670A..... Misstatements in, or omissions from, takeover and compulsory acquisition and buy‑out documents 183

670B..... Right to recover for loss or damage resulting from contravention .. 184

670C..... People liable on takeover or compulsory acquisition statement to inform maker about deficiencies in the statement ........................................................................................................ 186

670D..... Defences against prosecutions under subsection 670A(3) and actions under section 670B 187

5>67 0E...... Liability for proposing a bid or not carrying through with bid ...... 189

670F...... Defences ......................................................................................... 189

Chapter 6C--Information about ownership of listed companies and managed investment schemes 190

671A..... Chapter extends to some listed bodies that are not companies ...... 190

Part 6C.1--Substantial holding information 191

671B..... Information about substantial holdings must be given to company, responsible entity and relevant market operator ........................................................................................................ 191

671C..... Civil liability ................................................................................... 194

Part 6C.2--Tracing beneficial ownership of shares 195

672A..... Disclosure notices ........................................................................... 195

672B..... Disclosure by member of relevant interests and instructions ......... 195

672C..... ASIC may pass information on to person who made request ........ 196

672D..... Fee for complying with a direction given by a company or scheme under this Part 196

672DA.. Register of information about relevant interests in listed company or listed managed investment scheme 197

672E...... No notice of rights .......................................................................... 200

672F...... Civil liability ................................................................................... 200

Part 6C.3--ASIC powers 202

673........ ASIC's power to exempt and modify ............................................ 202

Chapter 6CA--Continuous disclosure 203

674........ Continuous disclosure--listed disclosing entity bound by a disclosure requirement in market listing rules 203

675........ Continuous disclosure--other disclosing entities ........................... 204

676........ Sections 674 and 675--when information is generally available .... 206

677........ Sections 674 and 675--material effect on price or value ................ 207

678........ Application of Criminal Code to offences based on subsection 674(2), 674(5) or 675(2) 207

Chapter 6D--Fundraising 208

Part 6D.1--Application of the fundraising provisions 208

700........ Coverage of the fundraising rules .................................................... 208

702........ Treatment of offers of options over securities ............................... 208

703........ Chapter may not be contracted out of ............................................ 209

703A..... Operating a clearing and settlement facility is not offering securities etc. 209

Part 6D.2--Disclosure to investors about securities 210

Division 1--Overview 210

704........ When disclosure to investors is needed .......................................... 210

705........ Types of disclosure document ....................................................... 210

Division 2--Offers that need disclosure to investors 212

706........ Issue offers that need disclosure ..................................................... 212

707........ Sale offers that need disclosure ....................................................... 212

708........ Offers that do not need disclosure .................................................. 215

708AA.. Rights issues that do not need disclosure ....................................... 221

708A..... Sale offers that do not need disclosure ........................................... 224

Division 3--Types of disclosure documents 229

709........ Prospectuses, short‑form prospectuses, profile statements and offer information statements 229

Division 4--Disclosure requirements 231

710........ Prospectus content--general disclosure test .................................. 231

711........ Prospectus content--specific disclosures ...................................... 233

712........ Prospectus content--short form prospectuses .............................. 235

713........ Special prospectus content rules for continuously quoted securities 236

714........ Contents of profile statement ......................................................... 238

715........ Contents of offer information statement ........................................ 239

715A..... Presentation etc. of disclosure documents ...................................... 240

716........ Disclosure document date and consents ......................................... 240

Division 5--Procedure for offering securities 242

717........ Overview of procedure for offering securities ................................ 242

718........ Lodging of disclosure document ..................................................... 244

719........ Lodging supplementary or replacement document ......................... 244

720........ Consents needed for lodgment ........................................................ 246

721........ Offer must be made in, or accompanied by, the disclosure document 248

722........ Application money to be held on trust .......................................... 249

723........ Issuing or transferring the securities under a disclosure document . 250

724........ Choices open to person making the offer if disclosure document condition not met or disclosure document defective ........................................................................................................ 251

725........ Expiration of disclosure document ................................................. 254

Part 6D.3--Prohibitions, liabilities and remedies 255

Division 1--Prohibitions and liabilities 255

726........ Offering securities in a body that does not exist ............................ 255

727........ Offering securities without a current disclosure document ............ 255

728........ Misstatement in, or omission from, disclosure document .............. 256

729........ Right to recover for loss or damage resulting from contravention .. 258

730........ People liable on disclosure document to inform person making the offer about deficiencies in the disclosure document ........................................................................................................ 259

731........ Due diligence defence for prospectuses .......................................... 259

732........ Lack of knowledge defence for offer information statements and profile statements 260

733........ General defences for all disclosure documents ............................... 261

734........ Restrictions on advertising and publicity ....................................... 262

735........ Obligation to keep consents and other documents ......................... 266

736........ Securities hawking prohibited ......................................................... 266

Division 2--Remedies 268

737........ Remedies for investors ................................................................... 268

738........ Securities may be returned and refund obtained ............................. 268

Part 6D.4--ASIC's powers 269

739........ ASIC stop orders ............................................................................ 269

740........ Anti‑avoidance determinations ....................................................... 271

741........ ASIC's power to exempt and modify ............................................ 271

Part 6D.5--Miscellaneous 273

742........ Exemptions and modifications by regulations ................................ 273

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]