Document ID: chunk:federal_register_of_legislation:F2024C00456:body:0:p2
Version: federal_register_of_legislation:F2024C00456
Segment Type: other
Provision Reference: 
Character Range: 2830–5459

after subsection 16(1) insert:

                  "(1A) An issuer of a warrant and a holder of the warrant are not associates of each other merely because of the terms of the warrant.
           For the purposes of this subsection, warrant and holder have the respective meanings given by subsection 609(6F).".
(2) Chapters 6 and 6C of the Act apply to all persons as if section 609 were modified or varied by as follows:
(a) omit subsection (6) (including the heading but excluding the note), substitute:

"Market traded options, derivatives and warrants
(6) A person does not have a relevant interest in securities merely because of:
(a) a market traded option over the securities; or
(b) a right to acquire the securities by a derivative; or
(c) a right under a call warrant:
(i) to acquire the securities; or
(ii) to require the securities to be held in trust.
           This subsection stops applying to the relevant interest when the obligation to make or take delivery of the securities arises.
Issuers of call warrants
(6A) An issuer of a call warrant does not have a relevant interest in securities to which the warrant relates merely because the securities are held in trust under the terms of the warrant, provided the issuer has no power to control the voting or disposal of the securities (other than to enforce the terms of the trust or to retain ownership of the securities if the warrant expires unexercised or the holder of the warrant defaults) unless and until the warrant expires.
(6B) If an issuer of a call warrant has a relevant interest in securities because subsection (6A) ceases to apply, the issuer is taken to acquire a relevant interest in the securities at that time, by a transaction in relation to the securities.
Issuers of put warrants
(6C) An issuer of a put warrant does not have a relevant interest in securities to which the warrant relates merely because:
(a) the holder of the warrant has an option, under the terms of the warrant, to require the issuer to acquire the securities; or
(b) under the warrant or a trust securing the obligations of the issuer or the holder under the warrant, the issuer can exercise power to control the voting or disposal of the security, provided the power can only be exercised where:
(i) the option under the warrant is exercised; or
(ii) the option under the warrant expires unexercised; or
(iii) the issuer enforces the terms of the trust; or
(iv) the holder defaults under the warrant.
(6D) If an issuer of a put warrant has a relevant interest in securities because subsection (6C) ceases to apply, the issuer is taken to acquire a relevant interest