Document ID: chunk:federal_register_of_legislation:C2025C00185:section:640
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 640
Character Range: 2530444–2531671

640  Expert's report to accompany target's statement if bidder connected with target
 (1) If:
 (a) the bidder's voting power in the target is 30% or more; or
 (b) for a bidder who is, or includes, an individual—the bidder is a director of the target; or
 (c) for a bidder who is, or includes, a body corporate—a director of the bidder is a director of the target;
a target's statement given in accordance with section 638 must include, or be accompanied by, a report by an expert that states whether, in the expert's opinion, the takeover offers are fair and reasonable and gives the reasons for forming that opinion.
Note: Subsections 648A(2) and (3) provide for the independence of the expert and disclosure of any association between the target and the expert or the bidder and the expert. A contravention of one of those subsections results in the target's statement not complying with this subsection.
 (2) In determining whether the bidder's voting power in the target is 30% or more, calculate the bidder's voting power at the time the bidder's statement is sent to the target.
 (3) An offence based on subsection (1) is an offence of strict liability.
Note: For strict liability, see section 6.1 of the Criminal Code.