163Expert report for acquisition or disposal of assets

163 Expert report for acquisition or disposal of assets

(1) This section applies if:

(a) a statutory manager of a body corporate proposes to:

(i) take action under subsection 99(1) (recapitalisation actions); or

(ii) otherwise take action on behalf of the body corporate to dispose of a business of the body corporate; or

(iii) otherwise take action on behalf of the body corporate to acquire or dispose of an asset (excluding an action to be taken in the ordinary course of the body corporate’s business); or

(b) the Reserve Bank proposes to make:

(i) a determination under section 118 that there is to be a transfer of shares in the body corporate; or

(ii) a determination under section 119 that there is to be a transfer of business of the body corporate; or

(c) the Reserve Bank proposes to direct a body corporate under subsection 91(1):

(i) to recapitalise; or

(ii) to take other action to dispose of a business of the body corporate; or

(iii) to take other action to acquire or dispose of an asset (excluding an action to be taken in the ordinary course of the body corporate’s business);

or to vary a direction under subsection 92(1) such that, following the variation, the direction will include a direction of the kind mentioned in subparagraph (i), (ii) or (iii) of this paragraph.

Note: For example, a report may be required for some actions taken under section 96.

Expert report

(2) Before determining terms for an action referred to in subsection (1), the statutory manager or Reserve Bank (as the case may be) must obtain, and consider, a report from an expert (within the meaning of the Corporations Act 2001) on:

(a) if the action is an action referred to in paragraph (1)(a) or (c)—the fair value of the business or asset concerned; or

(b) if the action is an action referred to in paragraph (1)(b)—the fair value of the business, part of the business or shares to be transferred.

(3) The expert must not be an associate (within the meaning of the Corporations Act 2001) of:

(a) the body corporate; or

(b) if the action is to be taken by a statutory manager (other than the Reserve Bank)—the statutory manager.

Publication

(4) The Reserve Bank may publish on its website details of, or relating to, the report.

Exemption from obtaining expert report

(5) Despite subsection (2), the Reserve Bank need not obtain the report if the Reserve Bank reasonably believes that obtaining the report is likely to pose a threat to the continuity of one or more cash distribution services that are critical to the availability of cash in Australia.