CORPORATIONS ACT 2001 No. 50, 2001 - SECT 622 Escalation agreements
CORPORATIONS ACT 2001 No. 50, 2001 - SECT 622
Escalation agreementsBenefits linked to bids and proposed bids not allowed
(1) A person who makes or proposes to make a takeover bid for securities, or their associate, contravenes this section if:
- (a)
- a person acquires a relevant interest in securities in the bid class within the 6 months before the bid is made or proposed; and
- (b)
- at any time whatever, the bidder, proposed bidder or associate gives or agrees to give a benefit to, or receives or agrees to receive a benefit from:
- (i)
- a person who had a relevant interest in any of the paragraph (a) securities immediately before the acquisition; or
- (ii)
- an associate of a person who had a relevant interest in any of those securities at that time; and
- (i)
- the amount or value of the consideration for the securities under the bid or proposed bid;
- (ii)
- the amount or value of the consideration for which the bidder or proposed bidder acquires, offers or proposes to offer to acquire, securities in the bid class during the offer period (whether or not under the bid) or under Chapter 6A.
Contravening agreements void
(2) An agreement is void to the extent that it purports to provide for: