Victorian Consolidated Legislation

Financial Sector Reform (Victoria) Act 1999 - SECT 50

Mergers and transfers of engagements commenced under Financial Institutions (Victoria) Code

50. Mergers and transfers of engagements commenced under Financial
Institutions (Victoria) Code



(1) This section applies if a transfer of engagements or merger commenced
before the transfer date under Part 7 of the Financial Institutions (Victoria)
Code and immediately before that date has not been completed, or been given
effect.

(2) The transfer of engagements or merger may be completed, or be given
effect, under Part 7 of the Financial Institutions (Victoria) Code on or after
the transfer date and, for that purpose, that Part, and other provisions of
the Code relevant to that Part, continue to apply as if section 19 had not
commenced.

(3) For the purpose of the application mentioned in subsection (2)-

   (a)  a reference in the Financial Institutions (Victoria) Code to the SSA
        is taken to be a reference to either relevant Commonwealth body; and

   (b)  a reference in the Financial Institutions (Victoria) Code to the SSA
        of a participating State is taken to be a reference to either relevant
        Commonwealth body; and

   (c)  the Financial Institutions (Victoria) Code applies with all other
        necessary changes.

(4) For the purposes of this section a transfer of engagements was commenced
before the transfer date under Part 7 of the Financial Institutions (Victoria)
Code if, before that date-

   (a)  one of the following conditions was satisfied in relation to each
        society or foreign society involved-

   (i)  the transfer was approved by a special resolution of the society or
        foreign society, in accordance with the relevant Financial
        Institutions Code;

   (ii) the relevant SSA made a determination, under the relevant Financial
        Institutions Code, that the transfer may be approved by the board of
        the society or foreign society; or

   (b)  in a case where each entity involved in the transfer is a society,
        VicFIC gave a direction, under the Financial Institutions (Victoria)
        Code, requiring the transfer.

(5) For the purposes of this section, a merger was commenced before the
transfer date if, before that date, one of the following conditions was
satisfied in relation to each society or foreign society involved-

   (a)  the merger was approved by a special resolution of the society or
        foreign society, in accordance with the relevant Financial
        Institutions Code;

   (b)  the relevant SSA made a determination, under the relevant Financial
        Institutions Code, that the merger may be approved by the board of the
        society or foreign society.

(6) The functions and powers of the SSA that are necessary for the purposes of
this section are conferred on each relevant Commonwealth body.

(7) In this section-

financial institutions agreement has the same meaning as in section 3 of the
AFIC Code;

foreign society means a body corporate that, before the transfer date, was a
society under the financial institutions legislation of another participating
State, whether or not it was registered as a foreign society under Part 11 of
the Financial Institutions (Victoria) Code;

participating State means a State that, immediately before the transfer date,
was a party to the financial institutions agreement and in which, immediately
before that date, the foreign society was incorporated;

relevant Financial Institutions Code means-

   (a)  in relation to a society, the Financial Institutions (Victoria) Code;
        or

   (b)  in relation to a foreign society, the law of another participating
        State corresponding to the Financial Institutions (Victoria) Code;

relevant SSA means-

   (a)  in relation to a society, VicFIC; or

   (b)  in relation to a foreign society, the State supervisory authority
        under the financial institutions legislation of the other
        participating State;

society means an entity that, immediately before the transfer date, was a
society under the Financial Institutions (Victoria) Code.