Queensland Consolidated Acts

LAND ACT 1994 - SECT 130A

130A Change of financial and managerial capabilities of lessee of lease for significant development

(1) The Minister may make a note under this section in the appropriate register against a lease under this division if—

(a) in relation to the lease, there has been an independent assessment of at least 1 of the following—

(i) under section 129 , an applicant’s financial and managerial capabilities;

(ii) under section 130 , a transferee’s financial and managerial capabilities; or

(b) if paragraph (a) does not apply in relation to the lease—the Minister is satisfied the lease is a lease for a significant development.

(2) Before acting under subsection (1) , the Minister must give the lessee at least 14 days notice of the Minister’s intention to make the note.

(3) The lessee of a relevant lease—

(a) must notify the Minister in the approved form as soon as practicable after there is a relevant change to the lessee; and

(b) must ensure that the notice to the Minister is accompanied by enough information about the relevant change to allow the Minister to decide whether an independent assessment of the financial and managerial capabilities of the lessee should be performed.

(4) The Minister may cause an independent assessment of the financial and managerial capabilities of a lessee of a relevant lease to be performed if—

(a) the lessee notifies the Minister under subsection (3) ; or

(b) the Minister is satisfied on reasonable grounds that the lessee should have notified the Minister under subsection (3) but has not done so.

(5) To remove any doubt, it is declared that, for section 234 (d) , the lessee of a lease contravenes a provision of this Act in relation to the lease, and the lease may accordingly be forfeited under chapter 5 , part 4 , if—

(a) the lease is a relevant lease; and

(b) the lessee contravenes subsection (3) .

(6) Further, a lease may be forfeited under chapter 5 , part 4 as if the lessee had contravened a provision of this Act in relation to the lease if all of the following circumstances apply—

(a) the lease is a relevant lease;

(b) an independent assessment of the financial and managerial capabilities of the lessee of the lease is performed under subsection (4) ;

(c) as a result of the assessment, the Minister is satisfied on reasonable grounds that—

(i) there has been a relevant change to the lessee; and

(ii) the relevant change can reasonably be expected to detrimentally affect the capacity of the lessee of the lease to meet the lessee’s obligations under the lease.

(7) If an independent assessment of the financial and managerial capabilities of a lessee of a relevant lease is performed under subsection (4) —

(a) the Minister may give to the person performing the assessment any information given to the Minister under subsection (3) (b) by the lessee; and

(b) the lessee must pay the costs of the assessment; and

(c) the cost is not refundable.

(8) If the Minister makes a note under this section against a lease—

(a) notice of the decision and the reasons for the decision must be given to the lessee; and

(b) the lessee may appeal against the decision.

(9) The Minister may remove a note made under this section against a lease if, having regard to the significant development to which the lease relates, the Minister considers its removal is appropriate in all the circumstances.

Example—

The Minister might remove a note if the Minister considers development required to be undertaken under the lease is complete or substantially complete.

(10) In this section—

"relevant change" , to a lessee of a relevant lease, means a change of substance in the financial and managerial capabilities of the lessee.

Examples of relevant changes to a lessee—

1 There is a change in the control of the lessee because of a share transaction involving the lessee or a holding company of the lessee, and the persons now directing the operations of the lessee do not have knowledge or experience in the lessee’s operations that relate to the relevant lease.

2 Receivers are appointed for the lessee.

"relevant lease" means a lease noted in the register under subsection (1) .