Commonwealth Numbered Acts

INSURANCE ACQUISITIONS AND TAKEOVERS ACT 1991 No. 6 of 1992 - SECT 3

3. The following is a statement setting out the objects of this Act and a
simplified outline of this Act:
OBJECTS OF ACT
To set out rules about the control of, and the compulsory notification of
proposals relating to:

   (a)  the acquisition or issue of shares in Australian-registered insurance
        companies and related companies (Part 2); or

   (b)  the acquisition or leasing of assets of Australian-registered
        insurance companies (Part 3); or

   (c)  the entering into of agreements relating to directors of
        Australian-registered insurance companies (Part 4).
To protect the public interest in a number of ways, including:

   (a)  ensuring that the affairs of Australian-registered insurance companies
        are carried out in a prudential manner; and

   (b)  preventing unsuitable persons from being in a position of influence
        over Australian-registered insurance companies; and

   (c)  preventing the undue concentration of economic power in the
        Australian general insurance industry, in the Australian life
        insurance industry or in the Australian financial system.
SIMPLIFIED OUTLINE OF ACT
A proposal must be notified to the Minister.
A proposal can be stopped if the Minister makes a temporary restraining order
or a permanent restraining order.
A proposal can be carried out if:

   (a)  the Minister makes a go-ahead decision; or

   (b)  the Minister takes no action before a time limit runs out.
If an unauthorised proposal is carried out, the Minister can make a divestment
order.
This Act is enforced by criminal sanctions and court orders.