Commonwealth Numbered Acts

TRADE PRACTICES REVISION ACT 1986 No. 17 of 1986 - SECT 19

19. After section 50 of the Principal Act the following section is inserted:
Acquisitions outside Australia   "50A. (1) Where a person acquires, outside
Australia, otherwise than by reason of the application of paragraph (8) (b), a
controlling interest in any body corporate and, by reason, but not necessarily
by reason only, of the application of paragraph (8) (b) in relation to the
controlling interest, obtains a controlling interest in a corporation or each
of 2 or more corporations, the Tribunal may, on the application of the
Minister, the Commission or any other person, if the Tribunal is satisfied
that-

   (a)  as a result of the obtaining by the person of the last-mentioned
        controlling interest, the person would be, or be likely to be, in a
        position to dominate a substantial market for goods or services in
        Australia, in a State or in a Territory;

   (b)  in a case where the person is in a position to dominate such a market-

        (i)    the body corporate or another body corporate that is related to
               that body corporate is, or is likely to be, a competitor of the
               person or of a body corporate that is related to the person;
               and

        (ii)   the acquisition would, or would be likely to, substantially
               strengthen the power of the person to dominate that market; and

   (c)  the obtaining by the person of the last-mentioned controlling interest
        would not, in all the circumstances, result, or be likely to result,
        in such a benefit to the public that the obtaining of that controlling
        interest should be disregarded for the purposes of this section, make
        a declaration accordingly.

"(2) Where an application under sub-section (1) is made-

   (a)  the Tribunal shall give to-

        (i)    each corporation in relation to which the application relates;
               and

        (ii)   the Minister and the Commission,
a notice in writing stating that the application has been made; and

   (b)  the persons referred to in paragraph (a) and, if the application was
        made by another person, that other person are entitled to appear, or
        be represented, at the proceedings following the application.

"(3) An application under sub-section (1) may be made at any time within 12
months after the date of the acquisition referred to in that sub-section in
relation to which the application is made.

"(4) The Tribunal may, on the application of the Minister, the Commission or
any other person, or of its own motion, revoke a declaration made under
sub-section (1).

"(5) The Tribunal shall state in writing its reasons for making, refusing to
make or revoking a declaration under sub-section (1).

"(6) After the end of 6 months after a declaration is made under sub-section
(1) in relation to the obtaining of a controlling interest in a corporation or
2 or more corporations by a person or, if the person, before the end of that
period of 6 months, makes an application to a presidential member for an
extension of that period, after the end of such further period (not exceeding
6 months) as the presidential member allows, the corporation or each of the
corporations, as the case may be, shall not, while the declaration remains in
force, carry on business in the market to which the declaration relates.

"(7) Sub-section (1) does not apply in relation to an acquisition referred to
in that sub-section if sub-section 50 (1) or (1A) applies in relation to that
acquisition.

"(8) For the purposes of this section-

   (a)  a person shall be taken to hold a controlling interest in a body
        corporate if the body corporate is, or, if the person were a body
        corporate, would be, a subsidiary of the person (otherwise than by
        reason of the application of paragraph 4A (1) (b)); and

   (b)  where a person holds a controlling interest (including a controlling
        interest held by virtue of another application or other applications
        of this paragraph) in a body corporate and that body corporate-

        (i)    controls the composition of the board of directors of another
               body corporate;

        (ii)   is in a position to cast, or control the casting of, any votes
               that might be cast at a general meeting of another body
               corporate; or

        (iii)  holds shares in the capital of another body corporate,
the person shall be deemed (but not to the exclusion of any other person) to
control the composition of that board, to be in a position to cast, or control
the casting of, those votes or to hold those shares, as the case may be.".