New South Wales Consolidated Acts

TOTALIZATOR AGENCY BOARD PRIVATISATION ACT 1997 - SECT 41

41 Disposal, forfeiture etc of shares where prohibited shareholding interest

(1) If the Minister:

(a) makes a declaration under section 39 (3), or

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

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

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

(d) on any other person who holds voting shares in TAB Limited 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 TAB Limited, or

(b) if, after all the shares in TAB Limited 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 TAB Limited-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 TAB Limited 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 TAB Limited fails to comply with the notice within the period required 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 TAB Limited and:

(a) a person who did not, before the transaction is entered into, have a prohibited shareholding interest in TAB Limited 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 TAB Limited would be entitled after the transaction to a greater number of voting shares in TAB Limited 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 voting shares in TAB Limited 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 voting shares in TAB Limited 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 TAB Limited, or

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

to be served on TAB Limited.