Document ID: chunk:federal_register_of_legislation:C2020C00315:section:8
Version: federal_register_of_legislation:C2020C00315
Segment Type: section
Provision Reference: s 8
Character Range: 8399–9579

8  Simplified outline of this Part

      If a person holds a stake in a financial sector company that exceeds the allowed percentage, the Federal Court may make orders to ensure that the situation ceases to exist.
      A person commits an offence if, by acquiring shares in a company (alone or under an arrangement with others), the person causes or worsens such a situation.
      A person's stake is the percentage of voting power in the company controlled by the person and the person's associates.
      The allowed percentage is 20% or a higher percentage approved by the Treasurer for the person either:
             (a) on national interest grounds; or
             (b) on the basis that the person is a fit and proper person and the company concerned is new or recently established, with assets below a certain threshold amount.
      A person who holds a stake of no more than 20% of a financial sector company may be declared by the Treasurer to have practical control of the company. The person must then take steps to end that control.
      The regulations may require records to be kept, and information to be given, for purposes relating to these restrictions.