Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Financial Sector (Shareholdings) Act 1998
1 Section 8
Repeal the section, substitute:
8 Simplified outline of this Part
If a person holds a stake in a financial sector company that exceeds the allowed percentage, the Federal Court may make orders to ensure that the situation ceases to exist.
A person commits an offence if, by acquiring shares in a company (alone or under an arrangement with others), the person causes or worsens such a situation.
A person's stake is the percentage of voting power in the company controlled by the person and the person's associates.
The allowed percentage is 15% or a higher percentage approved by the Treasurer for the person on national interest grounds.
A person who holds a stake of no more than 15% of a financial sector company may be declared by the Treasurer to have practical control of the company. The person must then take steps to end that control.
The regulations may require records to be kept, and information to be given, for purposes relating to these restrictions.
2 Subparagraph 23(1)(b)(i)
Omit "have any", substitute "hold a".
3 Subparagraph 23(1)(b)(ii)
Omit "has", substitute "holds".
4 Subparagraph 24(1)(c)(i)
Omit "have any", substitute "hold a".
5 Subparagraph 24(1)(c)(ii)
Omit "has", substitute "holds".
6 Subparagraph 25(1)(c)(i)
Omit "have any", substitute "hold a".
7 Subparagraph 25(1)(c)(ii)
Omit "has", substitute "holds".
8 Subparagraph 25(1)(f)(i)
Omit "have any", substitute "hold a".
9 Subparagraph 25(1)(f)(ii)
Omit "has", substitute "holds".
10 Paragraph 31(1)(c)
Omit "stakeholder's stake", substitute "stake the stakeholder holds".
11 Subsection 31(3)
Insert:
"hold" , in relation to a stake in a company, has the same meaning as in Schedule 1.
12 Subsection 31(3) (definition of increase )
After "stake", insert "held".
13 Subclause 2(1) of Schedule 1
Insert:
"hold" , in relation to a stake in a company, has the meaning given by subclause 10(1A).
14 Subclause 2(1) of Schedule 1 (definition of increase )
After "stake", insert "held".
15 Clause 10 of Schedule 1 (heading)
Repeal the heading, substitute:
10 Holding a stake in a company
16 Before subclause 10(1) of Schedule 1
Insert:
(1A) A person holds a stake in a company at a particular time only if the person holds a direct control interest in the company.
17 Application
The amendments made by this Schedule apply for the purposes of determining, after the commencement of this item:
(a) whether a person holds a stake in a company; and
(b) if the person does--the percentage stake.