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CORPORATIONS ACT 2001 - SECT 640

Expert's report to accompany target's statement if bidder connected with target

             (1)  If:

                     (a)  the bidder's voting power in the target is 30% or more; or

                     (b)  for a bidder who is, or includes, an individual--the bidder is a director of the target; or

                     (c)  for a bidder who is, or includes, a body corporate--a director of the bidder is a director of the target;

a target's statement given in accordance with section 638 must include, or be accompanied by, a report by an expert that states whether, in the expert's opinion, the takeover offers are fair and reasonable and gives the reasons for forming that opinion.

Note:          Subsections 648A(2) and (3) provide for the independence of the expert and disclosure of any association between the target and the expert or the bidder and the expert. A contravention of one of those subsections results in the target's statement not complying with this subsection.

             (2)  In determining whether the bidder's voting power in the target is 30% or more, calculate the bidder's voting power at the time the bidder's statement is sent to the target.

             (3)  An offence based on subsection (1) is an offence of strict liability.

Note:          For strict liability , see section 6.1 of the Criminal Code .



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