104Effect of statutory management on body corporate’s members

104 Effect of statutory management on body corporate’s members

Transfer of shares

(1) A transfer of shares in a body corporate that is made during the statutory management of the body corporate is void except if:

(a) both:

(i) the statutory manager and the Reserve Bank gives written consent to the transfer; and

(ii) that consent is unconditional; or

(b) all of the following subparagraphs apply:

(i) the statutory manager and the Reserve Bank gives written consent to the transfer;

(ii) that consent is subject to one or more specified conditions;

(iii) those conditions have been satisfied; or

(c) the transfer is done to give effect to an action under section 99 (recapitalisation actions) by the statutory manager; or

(d) the transfer is done to give effect to a transfer under Division 5 (compulsory transfers).

Alteration in the status of members

(2) An alteration in the status of members of a body corporate that is made during the statutory management of the body corporate is void except if:

(a) both:

(i) the statutory manager and the Reserve Bank gives written consent to the alteration; and

(ii) that consent is unconditional; or

(b) all of the following subparagraphs apply:

(i) the statutory manager and the Reserve Bank gives written consent to the alteration;

(ii) that consent is subject to one or more specified conditions;

(iii) those conditions have been satisfied; or

(c) the alteration is done to give effect to an action under section 99 (recapitalisation actions) by the statutory manager; or

(d) the alteration is done to give effect to a transfer under Division 5 (compulsory transfers).

(3) As soon as practicable after an alteration in the status of members of a body corporate is made during the statutory management of the body corporate, the statutory manager must give a written notice:

(a) to the persons who were members of the body just before the alteration; and

(b) that:

(i) identifies the alteration; and

(ii) explains the effect of the alteration on the members’ interests.

(4) A contravention of subsection (3) does not affect the validity of the alteration.