Commonwealth Consolidated Acts

TELSTRA CORPORATION ACT 1991 - SECT 8BH

                   If:

                     (a)  a person, or 2 or more persons under an arrangement, acquire shares in a company; and

                     (b)  the acquisition has the result, in relation to Telstra, that:

                              (i)  an unacceptable foreign‑ownership situation comes into existence in relation to Telstra; or

                             (ii)  if an unacceptable foreign‑ownership situation already exists in relation to Telstra because there is a group of foreign persons who hold, in total, a particular type of stake in Telstra of more than 35%--there is an increase in the total of any type of stake held by any group of foreign persons in Telstra; or

                            (iii)  if an unacceptable foreign‑ownership situation already exists in relation to Telstra because there is or are one or more foreign persons each of whom holds a particular type of stake in Telstra of more than 5%--there is an increase in any type of stake held by any of those foreign persons; and

                     (c)  the person or persons mentioned in paragraph (a) knew, or were reckless as to whether, the acquisition would have that result;

the person or persons mentioned in paragraph (a) are guilty of an offence punishable on conviction by a fine not exceeding 400 penalty units.

Note:          A person's stake is calculated on the assumption that the only shares in Telstra are shares held by persons other than the Commonwealth--see clause 12 of the Schedule.