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FOREIGN ACQUISITIONS AND TAKEOVERS ACT 1975 - SECT 9 Meaning of interest in a security

FOREIGN ACQUISITIONS AND TAKEOVERS ACT 1975 - SECT 9

Meaning of interest in a security

  (1)   A person holds or acquires an interest in a security if he or she has any legal or equitable interest in that security.

Note 1:   For other rules relating to interests in securities, see sections   13 to 15.

Note 2:   See also section   19 (tracing of substantial interests in corporations, trusts and unincorporated limited partnerships).

  (2)   Without limiting subsection   (1), a person holds or acquires an interest in a security in an entity if:

  (a)   the person is not the registered holder of the security; and

  (b)   the person is entitled to exercise or control the exercise of a right attached to the security (other than because he or she was appointed as a proxy or representative).

  (3)   In determining whether a person holds or acquires an interest in a security, it is immaterial that the interest cannot be related to a particular security.

Issued shares in a corporation

  (4)   A person holds or acquires an interest in the issued shares in a corporation if:

  (a)   all or part of the share capital of the corporation consists of stock; and

  (b)   the person holds an interest in that stock.

  (5)   For the purposes of this Act, the issued shares are taken to have:

  (a)   the same nominal amount as the amount of that stock; and

  (b)   the same rights attached to them as are attached to that stock.

Buying - back securities

  (6)   The buying - back of a security in an entity by the entity does not constitute an acquisition by the entity of an interest in a security in the entity.