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CORPORATIONS ACT 2001 No. 50, 2001 - SECT 657A

Declaration of unacceptable circumstances

(1) The Panel may declare circumstances in relation to the affairs of a company to be unacceptable circumstances. Without limiting this, the Panel may declare circumstances to be unacceptable circumstances whether or not the circumstances constitute a contravention of a provision of this Act.

Note: Sections 659B and 659C deal with court proceedings during and after a takeover bid.

(2) The Panel may only declare circumstances to be unacceptable circumstances if it appears to the Panel that the circumstances:

(a)
are unacceptable having regard to the effect of the circumstances on:

(i)
the control, or potential control, of the company or another company; or
(ii)
the acquisition, or proposed acquisition, by a person of a substantial interest in the company or another company; or
(b)
are unacceptable because they constitute, or give rise to, a contravention of a provision of this Chapter or of Chapter 6A, 6B or 6C.

The Panel may only make a declaration under this subsection, or only decline to make a declaration under this subsection, if it considers that doing so is not against the public interest after taking into account any policy considerations that the Panel considers relevant.

(3) In exercising its powers under this section, the Panel:

(a)
must have regard to:

(i)
the purposes of this Chapter set out in section 602; and
(ii)
the other provisions of this Chapter; and
(iii)
the rules made under section 658C; and
(iv)
the matters specified in regulations made for the purposes of paragraph 195(3)(c) of the ASIC Act; and
(b)
may have regard to any other matters it considers relevant.

In having regard to the purpose set out in paragraph 602(c) in relation to an acquisition, or proposed acquisition, of a substantial interest in a company, body or scheme, the Panel must take into account the actions of the directors of the company or body or the responsible entity for a scheme (including actions that caused the acquisition or proposed acquisition not to proceed or contributed to it not proceeding).

(4) The Panel must give an opportunity to make submissions in relation to the matter to:

(a)
each person to whom a proposed declaration relates; and

(b)
each party to the proceedings; and

(c)
ASIC.

(5) The declaration must be in writing and published in the Gazette. (6) As soon as practicable, the Panel must give each person to whom the declaration relates:

(a)
a copy of the declaration; and

(b)
a written statement of the Panel's reasons for making the declaration.

(7) This section does not require the Panel to perform a function, or exercise a power, in a particular way in a particular case.


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