Document ID: chunk:federal_register_of_legislation:C2004A03309:body:0:p14
Version: federal_register_of_legislation:C2004A03309
Segment Type: other
Provision Reference: 
Character Range: 31830–34488

disadvantages, of the provisions proposed to be renewed for the directors, and the members, respectively, of the company during the period during which the provisions have been in effect; and
(g) discusses both the potential advantages, and the potential disadvantages, of the proposed provisions, or of the provisions proposed to be renewed, as the case may be, for the directors, and the members, respectively, of the company.
"(5) Where a company contravenes sub-section (4), the company and any officer of the company who is in default are each guilty of an offence.
"(6) The penalty for an offence arising under sub-section (5) is a fine not exceeding $5,000 or imprisonment for a period not exceeding 1 year, or both.
"(7) Where, on a particular day, a company purports to—
(a) alter its constituent documents by inserting take-over approval provisions; or
(b) renew take-over approval provisions of the company,
then—
(c) the holders of not less in the aggregate than 10% of the issued shares included in a class of shares in the company may, within 21 days after that day, apply to the Court to have the purported alteration or renewal set aside; and
(d) unless and until an application made under paragraph (c) is finally determined by the making of an order setting aside the purported alteration or renewal, the company shall be deemed for all purposes (other than the purposes of such an application)—

(i) to have validly altered its constituent documents by inserting the provisions referred to in paragraph (a); or
(ii) to have validly renewed the provisions referred to in paragraph (b),
as the case may be.
"(8) An application under paragraph (7) (c) may be made, on behalf of the shareholders entitled to make the application, by such one or more of their number as they appoint in writing.
"(9) On an application under paragraph (7) (c), the Court may, if it is satisfied that it is appropriate in all the circumstances to do so, make an order setting aside the purported alteration or renewal, but otherwise shall dismiss the application.
"(10) A company shall, within 14 days after the Court makes in relation to the company an order of the kind referred to in sub-section (9), lodge an office copy of the order with the Commission.
"(11) Where a company contravenes sub-section (10), the company and any officer of the company who is in default are each guilty of an offence.
"(12) The penalty for an offence arising under sub-section (11) is a fine not exceeding $2,500 or imprisonment for a period not exceeding 6 months, or both.".
10. Before section 40 of the Principal Act the following section is inserted:

Persons selling shares