Document ID: chunk:federal_register_of_legislation:C2025C00185:section:657a:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 657A (pt 1/2)
Character Range: 2590041–2592773

657A  Declaration of unacceptable circumstances
 (1) The Takeovers Panel may declare circumstances in relation to the affairs of a company to be unacceptable circumstances. Without limiting this, the Takeovers Panel may declare circumstances to be unacceptable circumstances whether or not the circumstances constitute a contravention of a provision of this Act.
Note: Sections 659B and 659C deal with court proceedings during and after a takeover bid.
 (2) The Takeovers Panel may only declare circumstances to be unacceptable circumstances if it appears to the Takeovers Panel that the circumstances:
 (a) are unacceptable having regard to the effect that the Takeovers Panel is satisfied the circumstances have had, are having, will have or are likely to have on:
 (i) the control, or potential control, of the company or another company; or
 (ii) the acquisition, or proposed acquisition, by a person of a substantial interest in the company or another company; or
 (b) are otherwise unacceptable (whether in relation to the effect that the Takeovers Panel is satisfied the circumstances have had, are having, will have or are likely to have in relation to the company or another company or in relation to securities of the company or another company) having regard to the purposes of this Chapter set out in section 602; or
 (c) are unacceptable because they:
 (i) constituted, constitute, will constitute or are likely to constitute a contravention of a provision of this Chapter or of Chapter 6A, 6B or 6C; or
 (ii) gave or give rise to, or will or are likely to give rise to, a contravention of a provision of this Chapter or of Chapter 6A, 6B or 6C.
The Takeovers Panel may only make a declaration under this subsection, or only decline to make a declaration under this subsection, if it considers that doing so is not against the public interest after taking into account any policy considerations that the Takeovers Panel considers relevant.
 (3) In exercising its powers under this section, the Takeovers Panel:
 (a) must have regard to:
 (i) the purposes of this Chapter set out in section 602; and
 (ii) the other provisions of this Chapter; and
 (iii) the rules made under section 658C; and
 (iv) the matters specified in regulations made for the purposes of paragraph 195(3)(c) of the ASIC Act; and
 (b) may have regard to any other matters it considers relevant.
In having regard to the purpose set out in paragraph 602(c) in relation to an acquisition, or proposed acquisition, of a substantial interest in a company, body or scheme, the Takeovers Panel must take into account the actions of the directors of the company or body or the responsible entity for a scheme (including actions that caused the acquisition