Commonwealth Numbered Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]

CORPORATIONS ACT 2001 No. 50, 2001 - SECT 652C

Withdrawal of market bids

Bidder entitled to withdraw if certain events happen during the offer period

(1) The bidder may withdraw unaccepted offers made under a market bid if 1 of the following happens during the bid period, but only if the bidder's voting power in the target is at or below 50% when the event happens:

(a)
the target converts all or any of its shares into a larger or smaller number of shares (see section 254H);

(b)
the target or a subsidiary resolves to reduce its share capital in any way;

(c)
the target or a subsidiary:

(i)
enters into a buy-back agreement; or
(ii)
resolves to approve the terms of a buy-back agreement under subsection 257C(1) or 257D(1);
(d)
the target or a subsidiary issues shares, or grants an option over its shares, or agrees to make such an issue or grant such an option;

(e)
the target or a subsidiary issues, or agrees to issue, convertible notes;

(f)
the target or a subsidiary disposes, or agrees to dispose, of the whole, or a substantial part, of its business or property;

(g)
the target or a subsidiary charges, or agrees to charge, the whole, or a substantial part, of its business or property;

(h)
the target or a subsidiary resolves to be wound up.

(2) The bidder may also withdraw unaccepted offers made under a market bid if 1 of the following happens during the bid period:

(a)
a liquidator or provisional liquidator of the target or of a subsidiary is appointed;

(b)
a court makes an order for the winding up of the target or of a subsidiary;

(c)
an administrator of the target, or of a subsidiary, is appointed under section 436A, 436B or 436C;

(d)
the target or a subsidiary executes a deed of company arrangement;

(e)
a receiver, or a receiver and manager, is appointed in relation to the whole, or a substantial part, of the property of the target or of a subsidiary.

This is so regardless of the bidder's voting power at the time.

(3) Notice of the withdrawal must be given to each relevant securities exchange.



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback