Document ID: chunk:federal_register_of_legislation:C2024A00087:clause:1_837a:p1
Version: federal_register_of_legislation:C2024A00087
Segment Type: clause
Provision Reference: sch 1 cl 837A (pt 1/2)
Character Range: 63413–65963

837A  Compulsory transfer of shares in body corporate

Transfer of all or part of the shares in a CS facility licensee
 (1) The Reserve Bank may, in writing, make a determination that there is to be a transfer of all or part of the shares in a CS facility licensee (the target body) to another body corporate (the receiving body) if:
 (a) the Reserve Bank reasonably believes that the transfer is appropriate to manage or respond to a condition in section 831A being satisfied in relation to the licensee; and
 (b) the Minister consents to the transfer in writing; and
 (c) the Reserve Bank is satisfied that the board of the receiving body consents to the transfer.
Note: An expert report on fair value may be required before taking action: see section 849CB.

Transfer of all or part of the shares in a related body corporate
 (2) The Reserve Bank may, in writing, make a determination that there is to be a transfer of all or part of the shares in a body corporate (the target body) to another body corporate (the receiving body) if:
 (a) the Reserve Bank has made, or intends to make, a determination under subsection (1) that there is to be a transfer of shares in a CS facility licensee to another body corporate; and
 (b) the Reserve Bank reasonably believes that the transfer to the receiving body is appropriate to manage or respond to a condition in section 831A being satisfied in relation to the licensee; and
 (c) the target body is, or before the transfer of shares from the licensee referred to in paragraph (a) of this subsection was, a related body corporate of the licensee; and
 (d) the target body is incorporated in Australia; and
 (e) the Minister consents to the transfer in writing; and
 (f) the Reserve Bank is satisfied that the board of the receiving body consents to the transfer.
Note: An expert report on fair value may be required before taking action: see section 849CB.

Determination
 (3) A determination made under subsection (1) or (2) must include:
 (a) particulars of the transfer, including:
 (i) the names of the target body and the receiving body; and
 (ii) whether it will be a transfer of all or part of the shares; and
 (iii) if it will be a transfer of part of the shares—an indication of the shares that are to be transferred; and
 (b) a statement of the reasons why the determination has been made.
 (4) A determination made under subsection (1) or (2) is not a legislative instrument.

Notice
 (5) The Reserve Bank must give a copy of a determination made under subsection (1) or (2) to the target body