New South Wales Consolidated Acts

TOTALIZATOR AGENCY BOARD PRIVATISATION ACT 1997 - SECT 42

42 Effect of prohibited shareholding on voting and dividend rights

(1) This section applies to any provision of the articles of association of TAB Limited that:

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

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

(2) It is a condition of any licence that TAB Limited or a TAB Limited subsidiary holds under the Totalizator Act 1997 that any provision of the articles of association of TAB Limited to which this section applies must not be amended or repealed except with the written consent of the Minister.

(2A) The contravention of a condition of a licence imposed by subsection (2) is grounds for disciplinary action in relation to the licence concerned (including a licence held by a TAB Limited subsidiary) for the purposes of section 47 of the Totalizator Act 1997 .

(3) If the Minister is of the opinion that a resolution of a general meeting of TAB Limited 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 TAB Limited to which this section applies, have been admitted, the Minister may, by notice in writing served on TAB Limited, declare the resolution to have been (at all times) null and void.

(4) If notice of a declaration under this section is served on TAB Limited, 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 TAB Limited within one month after the date of the resolution to which it relates.