Document ID: chunk:federal_register_of_legislation:C2004A01524:section:1976:p2
Version: federal_register_of_legislation:C2004A01524
Segment Type: section
Provision Reference: s 1976 (pt 2/4)
Character Range: 2429–5191

Principal Act is repealed and the following sec­tion substituted: —

Compulsory notification of transactions.
"26. (1) In this section, 'person to whom this section applies' means—
(a) a natural person not ordinarily resident in Australia;
    (b) a corporation in which a natural person not ordinarily resident in Australia or a foreign corporation holds a substantial interest; or
    (c) a corporation in which 2 or more persons, each of whom is either a natural person not ordinarily resident in Australia or a foreign corporation, hold an aggregate substantial interest.
"(2) Where a person to whom this section applies—
    (a) enters into an agreement by virtue of which he acquires a substantial shareholding in an Australian corporation and did not, before entering into the agreement, furnish to the Treasurer a notice stating his intention to enter into that agreement; or
    (b) having furnished a notice to the Treasurer stating his intention to enter into an agreement by virtue of which he is to acquire a substantial shareholding in an Australian corporation, enters into that agreement before—
        (i) the expiration of 40 days after the date on which the notice was received by the Treasurer; or
        (ii) the date on which notice in writing is issued by or on be­half of the Treasurer stating that the Commonwealth Government does not object to his entering into that agreement,
whichever first occurs,
the person is guilty of an offence and is punishable on conviction by a fine not exceeding $50,000.
"(3) Where—
(a) a person enters into an agreement of a kind mentioned in sub-section (2); and
    (b) the provisions of the agreement that relate to the acquisition of the interests in the shares concerned do not become binding until the fulfilment of a condition or conditions set out in the agreement,
the person shall not be taken, for the purposes of that sub-section, to have entered into the agreement until the time when those provisions be­come binding.
"(4) Without affecting the operation of section 25, this section does not apply in relation to a shareholder of a corporation subscribing for shares in the corporation if—
    (a) the shares were subscribed for in pursuance of a resolution by the corporation or the directors of the corporation agreeing to make available a number of shares specified in, or ascertained in accordance with, the resolution for allotment to persons who were registered as the holders of shares in the corporation on a date specified in the resolution; and
    (b) the number of shares for which the shareholder so subscribed bears to the total number of shares made available for allotment in pursuance of the resolution as nearly as practicable the same proportion as the number of issued