Commonwealth Numbered Acts
[Search this Act]
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.
Sections 659B and 659C deal with court proceedings during and after a
(2) The Panel may only declare circumstances to be unacceptable circumstances
if it appears to the Panel that the circumstances:
- are unacceptable
having regard to the effect of the circumstances on:
- the control, or potential control, of the company or another company; or
- the acquisition, or proposed acquisition, by a person of a substantial
interest in the company or another company; or
- 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:
- must have
- the purposes of this Chapter set out in section 602; and
- the other provisions of this Chapter; and
- the rules made under section 658C; and
- the matters specified in regulations made for the purposes of paragraph
195(3)(c) of the ASIC Act; and
- 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
- each person to whom a proposed declaration relates; and
- each party to the proceedings; and
(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
- a copy of the declaration; and
- 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.
AustLII: Copyright Policy