118Compulsory transfer of shares in body corporate

118 Compulsory transfer of shares in body corporate

Transfer of all or part of the shares in a designated entity

(1) The Reserve Bank may, in writing, make a determination that there is to be a transfer of all or part of the shares in a designated entity (the target body) to another body corporate (the receiving body) if:

(a) the Reserve Bank reasonably believes that the transfer is appropriate to manage or respond to a condition in section 90 being satisfied in relation to the designated entity; and

(b) the Minister consents to the transfer in writing; and

(c) the Reserve Bank is satisfied that the board of the receiving body consents to the transfer.

Transfer of all or part of the shares in a related body corporate

(2) The Reserve Bank may, in writing, make a determination that there is to be a transfer of all or part of the shares in a body corporate (the target body) to another body corporate (the receiving body) if:

(a) the Reserve Bank has made, or intends to make, a determination under subsection (1) that there is to be a transfer of shares in a designated entity to another body corporate; and

(b) the Reserve Bank reasonably believes that the transfer to the receiving body is appropriate to manage or respond to a condition in section 90 being satisfied in relation to the designated entity; and

(c) the Reserve Bank reasonably believes that the transfer is necessary to ensure the ability of the entity to continue to provide one or more cash distribution services that are critical to the availability of cash in Australia; and

(d) the target body is, or before the transfer of shares from the designated entity referred to in paragraph (a) of this subsection was, a related body corporate of the designated entity; and

(e) the target body is incorporated in Australia; and

(f) the Minister consents to the transfer in writing; and

(g) the Reserve Bank is satisfied that the board of the receiving body consents to the transfer.

Determination

(3) A determination made under subsection (1) or (2) must include:

(a) particulars of the transfer, including:

(i) the names of the target body and the receiving body; and

(ii) whether it will be a transfer of all or part of the shares; and

(iii) if it will be a transfer of part of the shares—an indication of the shares that are to be transferred; and

(b) a statement of the reasons why the determination has been made.

(4) A determination made under subsection (1) or (2) is not a legislative instrument.

Notice