New South Wales Consolidated Acts

STATE OWNED CORPORATIONS ACT 1989 - SECT 20X

20X Acquisition and disposal of assets, investments and liabilities

(1) A statutory 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 of the consideration or disposal, whichever is the greater.

(4) A statutory 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 statutory SOC or a subsidiary of a statutory 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 statutory SOC or its subsidiaries not to dispose of any specified asset.