Document ID: chunk:federal_register_of_legislation:C2020C00315:section:24
Version: federal_register_of_legislation:C2020C00315
Segment Type: section
Provision Reference: s 24
Character Range: 36652–38045

24  Requirement to relinquish practical control or reduce stake
 (1) If a person has practical control of a financial sector company, the person must take such steps as are necessary to ensure that:
 (a) the directors of the company are not accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the person (either alone or together with associates); and
 (b) the person (either alone or together with associates) is not in a position to exercise control over the company; and
 (c) either:
 (i) the person does not hold a stake in the company; or
 (ii) if the person holds a stake in the company—that stake is not more than 20%.
Note: Practical control has the meaning given by section 23.
 (2) The person must take those steps:
 (a) within 90 days after receiving the copy of the most recent declaration under section 23 relating to the practical control of the company; or
 (b) if the Treasurer, by written notice given to the person, allows a longer period for compliance—before the end of that longer period.
 (3) A person commits an offence if:
 (a) the person is subject to a requirement under this section; and
 (b) the person intentionally or recklessly contravenes the requirement.
Penalty: 400 penalty units.
Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.