Document ID: chunk:federal_register_of_legislation:F2023C00839:body:0:p8
Version: federal_register_of_legislation:F2023C00839
Segment Type: other
Provision Reference: 
Character Range: 17717–20376

AQUA products as defined in the operating rules of ASX Limited that are able to be traded on the financial market operated by ASX Limited;
be based on the value of scheme property attributable to interests in that class at the time of issue less any liabilities that under the constitution may be met from that property attributable to interests in that class divided by the number of interests on issue in that class; or
(b) if it applies when the interests in the scheme:
(i) are in a class of interests that is  traded on a financial market; and
(ii) are not in a class of interests that are AQUA products as defined in the operating rules of ASX Limited that are able to be traded on the financial market operated by ASX Limited;
                  be based on the market price of the interests in that class on the market at or around the time of issue.
Note:  A reference to interests in a particular class includes a reference to all interests in the scheme if there are no separate classes of interest: subsection 57(2).
(3) A discretion in the constitution of the kind referred to in subsection (1) must not be exercised on the basis that it will result in a particular amount being set as the amount of the consideration to acquire an interest in the scheme.
(4) If a constitution includes a provision covered by subsection (1), the responsible entity must comply with subsections (5) to (11).

           Exercise of discretion must be reasonable

(5) The responsible entity must act reasonably in exercising a discretion covered by subsection (1).
Note:  The responsible entity is also subject to its general duties under section 601FC including the duty to act in the best interests of the members of the scheme.
(6) Without limiting subsection (5), the manner in which a discretion is exercised must as far as practicable be:
(a) if the discretion relates to working out the value of scheme property—consistent with ordinary commercial practice for valuing property of the relevant kind; and
(b) if the discretion relates to working out the market price of interests in the scheme which are quoted on a financial market—consistent with ordinary commercial practice for working out the market price of interests of the same kind in relation to an issue of the interests.

           Documentation of exercise of discretion

(7) The responsible entity must prepare one or more documents that:
(a) set out:
(i) a description of the formula or method that the responsible entity may apply in working out the  amount of the consideration to acquire interests in the scheme including each discretion covered by subsection (1) relevant to the formula or