FOREIGN ACQUISITIONS AND TAKEOVERS ACT 1975 - SECT 67 Order prohibiting proposed actions
FOREIGN ACQUISITIONS AND TAKEOVERS ACT 1975 - SECT 67
Order prohibiting proposed actions(1) The Treasurer may, by notifiable instrument, make an order under subsection (2) if the Treasurer is satisfied that:
(a) a significant action (other than a significant action covered by subparagraph (1A)(a)(ii)) is proposed to be taken; and
(b) taking the significant action would be contrary to the national interest.
Note: See also section 77 (time limit on making orders and decisions) and Parts 5 (offences and civil penalties) and 6 (fees).
(1A) The Treasurer may, by notifiable instrument, make an order under subsection (2) if the Treasurer is satisfied that:
(a) an action of any of the following kinds is proposed to be taken:
(i) a notifiable national security action that is not a significant action;
(ii) an action in respect of which the Treasurer has given a notice under subsection 66A(4);
(iii) a reviewable national security action notified to the Treasurer; and
(b) taking the action would be contrary to national security.
Note: See also section 77 (time limit on making orders and decisions) and Parts 5 (offences and civil penalties) and 6 (fees).
(2) The Treasurer may make an order in accordance with the following table.
Powers of Treasurer to prohibit proposed actions | ||
Item | If the action is ... | the Treasurer may make an order prohibiting ... |
1 | to acquire: (a) a direct interest in an entity or Australian business; or (b) a direct interest in an Australian entity, or an Australian business, that is an agribusiness; or (c) an interest in securities in an entity; or (d) an interest of any percentage in an entity or an Australian business; or (e) an interest in assets of an Australian business; or (f) a direct interest in a national security business; or (g) a legal or equitable interest in an exploration tenement, and that action is to be taken by a foreign person who is not a foreign government investor | the whole or a part of the proposed acquisition. |
2 | to issue securities in an entity | the whole or a part of the proposed issue of the securities. |
3 | to enter an agreement mentioned in paragraph 40(2)(d) or subparagraph 55D(2)(a)(ii) | entering the proposed agreement. |
4 | to alter a constituent document of an entity as mentioned in paragraph 40(2)(e) or subparagraph 55D(2)(a)(iii) | the proposed alteration. |
5 | to start an Australian business, and that action is to be taken by a foreign person who is not a foreign government investor | the starting of the whole or a part of the Australian business. |
5A | to start a national security business | the starting of the whole or a part of the national security business. |
6 | to enter a significant agreement with an Australian business | entering the proposed agreement. |
7 | to terminate a significant agreement with an Australian business | the termination of the existing agreement. |
8 | to acquire an interest in Australian land | the proposed acquisition. |
9 | to take any significant action prescribed by regulations made for the purposes of section 44 | any thing prescribed by regulations made for the purposes of this item. |
(3) If the Treasurer makes an order under subsection (2), the Treasurer may, by notifiable instrument, also make an order in accordance with the following table.
Additional orders | ||
Item | If the action is ... | the Treasurer may also make an order ... |
1 | to acquire: (a) a direct interest in an entity; or (b) a direct interest in an Australian entity that is an agribusiness; or (c) an interest of any percentage in an entity; or (d) an interest in securities in an entity | directing a specified foreign person (whether alone or with specified associate or class of associates) not to: (a) increase the proportion of the total voting power, or the total potential voting power, in the entity that the person is in a position to control (or increase that proportion beyond a specified proportion); or (b) increase the proportion of interests in issued securities in the entity that the person holds (or increase that proportion beyond a specified proportion). |
2 | to acquire: (a) a direct interest in an Australian business that is an agribusiness; or (b) a direct interest in a national security business; or (c) an interest in assets of an Australian business; or (d) an interest of any percentage in an Australian business | directing a specified foreign person (whether alone or with specified associate or class of associates): (a) not to acquire any interests in that business or the assets of that business; or (b) to acquire any such interests only to a specified extent. |
3 | to acquire an interest in Australian land | directing a specified foreign person (whether alone or with specified associate or class of associates): (a) not to acquire any interests in the land or other thing concerned; or (b) to acquire any such interests only to a specified extent. |