Document ID: chunk:federal_register_of_legislation:C2025C00185:section:823n
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 823N
Character Range: 3204332–3206286

823N  Recapitalisation directions—determination of the fair value of shares or rights by an expert

Determining the fair value of shares
 (1) In determining the fair value for each share in a CS facility licensee for the purposes of paragraph 823M(2)(a), the expert must:
 (a) first, assess the value of the licensee as a whole in accordance with the assumptions (if any) notified to the expert under subsection (3) of this section for the valuation of the licensee; and
 (b) second, allocate that value among the classes of shares in the licensee that:
 (i) have been issued; or
 (ii) the Reserve Bank proposes to direct be issued (taking into account the relative financial risk, and voting and distribution rights, of the classes); and
 (c) third, allocate the value of each class pro rata among the shares in that class that:
 (i) have been issued; or
 (ii) the Reserve Bank proposes to direct be issued (without allowing a premium or applying a discount for particular shares in that class).

Determining the fair value of rights
 (2) In determining the fair value for each right to acquire shares in a CS facility licensee for the purposes of paragraph 823M(2)(a), the expert must act in accordance with the assumptions (if any) notified to the expert under subsection (3) of this section for the valuation of that right.

Ministerial or Reserve Bank assumptions
 (3) The Minister or the Reserve Bank may give written notice of the following to the expert:
 (a) assumptions for the valuation of the CS facility licensee;
 (b) assumptions for the valuation of rights to acquire shares in the CS facility licensee.
 (4) An entity who gave assumptions under subsection (3) may, by further written notice given to the expert, revoke, but not vary, those assumptions.
 (5) Ministerial assumptions prevail over Reserve Bank assumptions to the extent of any inconsistency.
 (6) A notice given under subsection (3) or (4) is not a legislative instrument.