Commonwealth legislation

ASIC Class Order [CO 04/631]

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Collection

legislative instrument

Plain English Summary

4/10 complexity

This Class Order narrows who counts as an “associate” under Australian takeover law by excluding standard securities lending, repo and similar arrangements from automatically creating association where one party can sell or control shares held under that agreement.

It protects investment banks, fund managers and institutional investors from accidentally triggering takeover obligations and disclosure requirements in routine market transactions.

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Current sections

Direct links to the current provisions in ASIC Class Order [CO 04/631].

ASIC Class Order [CO 04/631]

Australian Securities and Investments Commission

Corporations Act 2001 – Paragraphs 655A(1)(b), 669(1)(b) and 673(1)(b) – Declaration

Under paragraphs 655A(1)(b), 669(1)(b) and 673(1)(b) of the Corporations Act 2001 (the Act), the Australian Securities and Investments Commission declares that Chapters 6, 6A and 6C of the Act apply to all persons as if section 12 of the Act were modified or varied by:

inserting at the beginning of each of paragraphs 12(2)(b) and (c) “subject to subsection 12(2A),”; and
inserting after subsection 12(2):

“(2A) For the purposes of paragraphs 12(2)(b) and (c), the second person is not an associate of the primary person in relation to a designated body merely because:

(a) they have entered or propose to enter into a relevant agreement; and

(b) one of them has or will have a right under that relevant agreement (whether the right is enforceable presently or in the future and whether or not on the fulfilment of a condition) to dispose of securities in the designated body or control the exercise of a power to dispose of the securities.”.

Dated this 9th day of June 2004

Signed by Brendan Byrne

as a delegate of the Australian Securities and Investments Commission

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

1 ASIC Class Order [CO 04/631]