Document ID: chunk:federal_register_of_legislation:C2025C00185:section:823m
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 823M
Character Range: 3202495–3204332

823M  Recapitalisation directions—Reserve Bank must obtain expert's report on the fair value of shares etc.
 (1) Before giving a recapitalisation direction directing a CS facility licensee to issue one or more specified classes of:
 (a) shares in the licensee; or
 (b) rights to acquire shares in the licensee;
the Reserve Bank must:
 (c) obtain a report on the fair value of those shares, or those rights, from an expert who is not an associate of the licensee; and
 (d) consider the report.
Note: The report may not always be required: see subsection (4).
 (2) The report must set out:
 (a) the amount that is, in the expert's opinion, the fair value for each of those shares or rights; and
 (b) the reasons for forming the opinion; and
 (c) any relationship between the expert and:
 (i) the licensee; or
 (ii) a person who is an associate of the licensee;
  including any circumstances in which the expert gives the licensee or person advice, or acts on behalf of the licensee or person, in the proper performance of the functions attaching to the expert's professional capacity or business relationship with the licensee or person; and
 (d) any financial or other interest of the expert that could reasonably be regarded as being capable of affecting the expert's ability to give an unbiased opinion in relation to the matter being reported on.
 (3) The Reserve Bank may publish details of, or relating to the report.
 (4) Despite subsection (1), the Reserve Bank need not obtain the report if it is satisfied that doing so would detrimentally affect:
 (a) participants, or proposed participants, in the CS facility; or
 (b) the continuity of one or more clearing and settlement facility services that are critical to the functioning of the financial system in Australia; or
 (c) the stability of the financial system in Australia.