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This legislation has been repealed.

CORPORATIONS LAW

- SECT 631

Bid must proceed within 2 months after proposal

(1)

If a person publicly proposes to make a takeover bid for securities in a company, either alone or with other persons, the person contravenes this subsection unless they make offers for the securities under a takeover bid within 2 months after the proposal. The terms and conditions of the bid must be the same as or not substantially less favourable than those in the public proposal.

Note: The Court has power under section 1325B to order a person to proceed with a bid.

Proposals if takeover bid not intended

(2)

A person must not publicly propose, either alone or with other persons, to make a takeover bid if:

(a)

the person knows the proposed bid will not be made, or is reckless as to whether the proposed bid is made; or

(b)

the person is reckless as to whether they will be able to perform their obligations relating to the takeover bid if a substantial proportion of the offers under the bid are accepted.

(3)

Section 1314 (continuing offences) and subsection 1324(2) (injunctions) do not apply in relation to a failure to make a takeover bid in accordance with a public proposal under subsection (1).

Note: For liability and defences for contraventions of this section, see sections 670E and 670F.