New South Wales Consolidated Acts

TOTALIZATOR ACT 1997 - SECT 36

36 Disposal, forfeiture etc of shares where prohibited shareholding interest

(1) If the Minister:

(a) makes a declaration under section 34 (3), or

(b) forms the opinion and, by notice in writing served on a licensee, declares under this subsection,

that a person (in this section referred to as "the offender") has a prohibited shareholding interest in a licensee, the Minister may, by notice in writing served:

(c) if the offender holds voting shares in the licensee to which the offender is entitled-on the offender, or

(d) on any other person who holds voting shares in the licensee to which the offender is entitled,

declare that the offender or that other person must dispose of the relevant number of those shares, or a specified number of those shares not exceeding the relevant number, otherwise than to the offender or an associate of the offender within a specified period, being not less than 3 months after service of the notice.

(2) For the purposes of subsection (1), the relevant number of shares that a person may be required by a notice under that subsection to dispose of is:

(a) subject to paragraph (b), the number of shares held by the person that would need to be so disposed of in order to cause the offender to cease to have a prohibited shareholding interest in the licensee, or

(b) if, after all the shares in the licensee held by the person to which the offender is entitled were so disposed of, the offender would continue to have a prohibited shareholding interest in the licensee-the total number of those shares.

(3) For the purposes of this section, a person is not to be taken to have disposed of shares in a licensee to which an offender is entitled unless and until the person ceases to hold the shares and the offender ceases to be entitled to the shares.

(4) If a person served with a notice of a declaration under subsection (1) requiring the person to dispose of shares in a licensee fails to comply with the notice within the period specified by the notice, the shares to which the notice relates are, by force of this subsection, forfeited to the State.

(5) If a transaction is entered into with respect to any shares in a licensee and:

(a) a person who did not, before the transaction is entered into, have a prohibited shareholding interest in the licensee would have such an interest after the transaction, or

(b) a person who, before the transaction is entered into, had a prohibited shareholding interest in the licensee would be entitled after the transaction to a greater number of voting shares in the licensee than the person was entitled to immediately before the transaction,

the transaction is not illegal or void as a result of this Division but the shares in the licensee that were the subject of the transaction are subject to forfeiture under subsection (6).

(6) The Minister may by written notice served on the parties to a transaction referred to in subsection (5) declare that the shares in the licensee that were the subject of the transaction are forfeited to the State.

(6A) A declaration under subsection (6) takes effect when the notices required in respect of the declaration by subsections (6) and (7) are served (or, if they are served at different times, when the one that is served latest is served).

(7) The Minister must cause written notice of:

(a) a declaration under subsection (1) requiring a person to dispose of shares in a licensee, or

(b) a declaration under subsection (6) that shares in a licensee are forfeited to the State,

to be served on the licensee.