(1) A company SOC or any of its subsidiaries may not acquire or dispose of
fixed assets or investments, including shares in a company, without the prior
written approval of the voting shareholders--
(a) where the total assets and
investments being acquired or disposed of (together with any other such
acquisitions or dispositions during the last 12 months) represent an amount in
excess of the prescribed percentage of the written down value of the SOC's
consolidated fixed assets and investments as disclosed in its last audited
financial report, or
(b) where it could reasonably be expected that the
inclusion or exclusion, respectively, of the total current year's profit or
loss of such acquisition or disposition (together with any other such
acquisitions or dispositions during that year) would result in an increase in
or diminution of the SOC's consolidated pre-tax operating profit or loss for
the year of acquisition or disposal in excess of the prescribed percentage
compared with that consolidated pre-tax operating profit or loss disclosed in
its last audited financial report.
(2) In the case of an acquisition to which
this section applies, the amount is the cost price of the asset or investment.
(3) In the case of a disposition to which this section applies, the amount is
the book value or the consideration on disposal, whichever is the greater.
(4) A company SOC or any of its subsidiaries may not acquire or dispose of any
assets or liabilities, in contravention of any requirements of the regulations
under this Act.
(5) In seeking the approval of the voting shareholders under
this section, the SOC or subsidiary is required to provide the
voting shareholders with such information as they require, including such
kinds of information (if any) as are prescribed by the regulations under this
Act.
(6) The prescribed percentage is 10 per cent or such other percentage as
is prescribed by the regulations under this Act.
(7) All or any specified
requirements of subsections (1), (2) and (3) do not apply in such
circumstances as are specified in a written notice given to a company SOC or a
subsidiary of a company SOC by the Treasurer.
(8) The Treasurer may not give
such a notice unless satisfied that the requirements are incapable of
application to the SOC or subsidiary in the circumstances or would apply to it
in a clearly inappropriate manner.
(9) The voting shareholders may, by
written notice, direct a company SOC or its subsidiaries not to dispose of any
specified asset.
