Document ID: chunk:federal_register_of_legislation:C2025C00134:section:131eb
Version: federal_register_of_legislation:C2025C00134
Segment Type: section
Provision Reference: s 131EB
Character Range: 759022–761081

131EB  Direction to relinquish control
 (1) The Regulator may give a person a direction to relinquish control of an RSE licensee if:
 (a) the Regulator has reason to believe that:
 (i) the person has a controlling stake in the RSE licensee; or
 (ii) the person has practical control of the RSE licensee; and
 (b) the Regulator has reason to believe that because of:
 (i) the person's controlling stake, or practical control, of the RSE licensee; or
 (ii) the way in which control has been, is or is likely to be exercised;
  the RSE licensee has been, is or is likely to be unable to satisfy one or more of the trustee's obligations contained in a covenant set out in sections 52 to 53, or prescribed under section 54A.
 (2) The Regulator may give a person a direction to relinquish control of an RSE licensee if:
 (a) the Regulator has reason to believe that the person has a controlling stake in the RSE licensee; and
 (b) the person does not have approval under section 29HD to hold a controlling stake in the RSE licensee.
 (3) The Regulator may give a person a direction to relinquish control of an RSE licensee if:
 (a) the Regulator has reason to believe that that the person has a controlling stake in the RSE licensee; and
 (b) the person has approval under section 29HD to hold a controlling stake in the RSE licensee; and
 (c) information given to the Regulator in relation to the application for approval was false or misleading in a material particular.
 (4) To avoid doubt, a direction under subsection (1) or (3) to a person to relinquish a controlling stake in an RSE licensee may be given even if the person has approval to hold a controlling stake in the RSE licensee.
 (5) The direction must be given in writing.
 (6) The Regulator must give the person:
 (a) a copy of the direction; and
 (b) a statement of the Regulator's reasons for giving the direction.
 (7) The Regulator may revoke a direction to relinquish control of an RSE licensee.
 (8) The revocation must be in writing and a copy of the revocation must be given to the person.