FOREIGN ACQUISITIONS AND TAKEOVERS ACT 1975 - SECT 15 Interests acquired by entering agreements or acquiring options

FOREIGN ACQUISITIONS AND TAKEOVERS ACT 1975 - SECT 15

  (1)   For the purposes of this Act, a person is taken (except as provided by subsections   (4) and (5)) to acquire an interest in a security, asset, trust or Australian land if the person:

  (a)   enters an agreement to acquire the interest; or

  (b)   either:

  (i)   for an interest in a security, asset or trust--has a right to acquire such an interest under an option; or

  (ii)   for an interest in Australian land--acquires an option to acquire such an interest; or

  (c)   has a right, other than by reason of having an interest under a trust, to have such an interest transferred to himself or herself or to his or her associate.

Note:   For the definition of enters , see section   25.

  (2)   To avoid doubt, a right mentioned in paragraph   (1)(b) or (c) includes a right under an instrument or agreement.

  (3)   Subsections   (1) and (2) apply whether or not:

  (a)   the right or option is presently exercisable or exercisable in the future; or

  (b)   the agreement, right or option requires the fulfilment of a condition.

Provisions of agreements that are not currently binding

  (4)   Subsection   (5) applies for the purposes of the following provisions:

  (a)   Part   4 (notices required for notifiable actions and notifiable national security actions, and may be given of other actions);

  (b)   Part   5 (offences and civil penalties) to the extent that it relates to Part   4;

  (c)   any other provision of this Act to the extent that it relates to the provisions mentioned in paragraph   (a) or (b);

  (d)   the definition of new dwelling in section   4 (including to the extent that the definition affects the definition of established dwelling in that section), except in section   95 (acquisition of interests in established dwellings).

  (5)   If:

  (a)   a person proposes to take an action to acquire or sell an interest in a security, asset, trust or Australian land; and

  (b)   the provisions of the agreement to acquire or sell the interest do not become binding on the person until one or more conditions are met;

the person takes the action to acquire or sell the interest, and enters the agreement, only when the provisions become binding.

Note:   As a result of this subsection, the person acquires or sells the interest only when the provisions become binding. If the provisions do not become binding until one or more conditions are met, and one of those conditions is met only when the Treasurer has given an exemption certificate or no objection notification, then the person does not acquire or sell the interest before the Treasurer has given an exemption certificate or no objection notification.