Document ID: chunk:federal_register_of_legislation:C2004A05097:clause:1_8aj
Version: federal_register_of_legislation:C2004A05097
Segment Type: clause
Provision Reference: sch 1 cl 8AJ
Character Range: 22290–24400

8AJ  Telstra sale scheme

 (1) The object of this section is to define the expressions Telstra sale scheme, sale-scheme trustee and sale-scheme trust deed.

 (2) For the purposes of this Act, a Telstra sale scheme is a scheme the object of which is to achieve the transfer, or progressive transfer, of a part of the Commonwealth's equity in Telstra to other persons.

 (3) A Telstra sale scheme must be consistent with sections 8AB and 8AC.

 (4) A Telstra sale scheme may involve any or all of the following:
 (a) the transfer by the Commonwealth of any of its shares in Telstra;
 (b) the transfer by the Commonwealth of interests in its shares in Telstra to a company (the sale-scheme trustee) in the company's capacity as the trustee of a trust established by a trust deed (the sale-scheme trust deed);
 (c) an investor in Telstra initially acquiring a particular interest in shares in Telstra and subsequently acquiring the remaining interests in those shares;
 (d) the payment by Telstra of a dividend;
 (e) the reduction of Telstra's share capital;
 (f) the cancellation of a particular parcel of shares in Telstra held by the Commonwealth;
 (g) Telstra buying back shares in itself;
 (h) the issue of securities in Telstra;
 (i) the redemption of redeemable preference shares in Telstra held by the Commonwealth;
 (j) the alteration of Telstra's constitution.

 (5) In determining whether a scheme is a Telstra sale scheme, regard must be had to the economic and commercial substance of the scheme.

 (6) Subsections (4) and (5) do not, by implication, limit subsection (2).

 (7) In this section:

interest in a share has the same meaning as it has for the purposes of Part 2A.

scheme means:
 (a) any agreement, arrangement, understanding, promise or undertaking, whether express or implied; and
 (b) any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.

securities includes:
 (a) shares; and
 (b) debentures (within the meaning of the Corporations Law).

transfer, in relation to an interest in a share, includes the creation of the interest.