119Compulsory transfer of business of body corporate

119 Compulsory transfer of business of body corporate

Total or partial transfer of business of designated entity

(1) The Reserve Bank may, in writing, make a determination that there is to be a total or partial transfer of business of a designated entity from the 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.

Total or partial transfer of business of related body corporate

(2) The Reserve Bank may, in writing, make a determination that there is to be a total or partial transfer of business from 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 total or partial transfer of business from 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 designated 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 business from the entity 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 total or a partial transfer; and

(iii) if it will be a partial transfer—an indication of the part of the target body’s business that is 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

(5) The Reserve Bank must give a copy of a determination made under subsection (1) or (2) to the target body and the receiving body.