New South Wales Consolidated Acts

TOTALIZATOR ACT 1997 - SECT 37

37 Effect of prohibited shareholding on voting and dividend rights

(1) This section applies to any provision of the articles of association of a licensee that:

(a) provides for the suspension of any voting rights attaching to voting shares in the licensee as a result of any person who is entitled to the shares having a prohibited shareholding interest in the licensee, or

(b) authorises or requires the licensee, as a result of any person having a prohibited shareholding interest in the licensee, to refuse payment, defer payment or suspend any entitlement to payment of any amount or amounts that would otherwise be due from the licensee in respect of any shares in the licensee to which the person is entitled.

(2) It is a condition of a licence under this Act that any provision of the articles of association of the licensee to which this section applies cannot be amended or repealed except with the written consent of the Minister.

(3) If the Minister is of the opinion that a resolution of a general meeting of a licensee has been passed as a result of the admission of votes that should not, by virtue of a provision of the articles of association of the licensee to which this section applies, have been admitted, the Minister may, by notice in writing served on the licensee, declare the resolution to have been (at all times) null and void.

(4) If notice of a declaration under this section is served on a licensee, the Minister must, at the same time or as soon as practicable thereafter, cause written notice of the declaration to be served on each person whose votes should not, in the opinion of the Minister, have been admitted.

(5) A notice under this section does not have any effect unless it is served on the licensee within one month after the date of the resolution to which it relates.