Document ID: chunk:federal_register_of_legislation:C2004C01070:clause:1_609:p1
Version: federal_register_of_legislation:C2004C01070
Segment Type: clause
Provision Reference: sch 1 cl 609 (pt 1/2)
Character Range: 165330–168090

609  Situations not giving rise to relevant interests

Money lending and financial accommodation

 (1) A person does not have a relevant interest in securities merely because of a mortgage, charge or other security taken for the purpose of a transaction entered into by the person if:
 (a) the mortgage, charge or security is taken or acquired in the ordinary course of the person's business of providing financial services and on ordinary commercial terms; and
 (b) the person whose property is subject to the mortgage, charge or security is not an associate of the person.

Note: Sections 11 to 17 define associate.

Nominees and other trustees

 (2) A person who would otherwise have a relevant interest in securities as a bare trustee does not have a relevant interest in the securities if a beneficiary under the trust has a relevant interest in the securities because of a presently enforceable and unconditional right of the kind referred to in subsection 608(8).

Note: This subsection will often apply to a person who holds securities as a nominee.

Holding of securities by securities dealer

 (3) A securities dealer does not have a relevant interest in securities merely because they hold securities on behalf of someone else in the ordinary course of their securities business.

Shares covered by buy‑backs

 (4) A person does not have a relevant interest in a company's shares if the relevant interest would arise merely because the company has entered into an agreement to buy back the shares.

Proxies

 (5) A person does not have a relevant interest in securities merely because the person has been appointed to vote as a proxy or representative at a meeting of members, or of a class of members, of the company, body or managed investment scheme if:
 (a) the appointment is for one meeting only; and
 (b) neither the person nor any associate gives valuable consideration for the appointment.

Exchange traded options and futures contracts

 (6) A person does not have a relevant interest in securities merely because of:
 (a) an exchange traded option over the securities; or
 (b) a right to acquire the securities given by a futures contract.
This subsection stops applying to the relevant interest when the obligation to make or take delivery of the securities arises.

Note: Without this subsection, subsection 608(8) would create a relevant interest from the option or contract.

Conditional agreements

 (7) A person does not have a relevant interest in securities merely because of an agreement if the agreement:
 (a) is conditional on:
 (i) a resolution under item 7 in the table in section 611 being passed; or
 (ii) ASIC exempting the acquisition under the agreement from the provisions of this Chapter under section 655A; and