99Powers to facilitate recapitalisation

99 Powers to facilitate recapitalisation

(1) A statutory manager of a body corporate may do one or more of the following acts on terms determined by the statutory manager, at the direction of or with the written consent of the Reserve Bank:

(a) increase the body corporate’s level of share capital to a level specified in the determination;

(b) issue one or more classes of shares, or one or more specified classes of rights to acquire shares, in the body corporate, being a class or classes specified in the determination;

(c) issue capital instruments;

(d) acquire, cancel or sell:

(i) shares in the body corporate; or

(ii) rights to acquire shares in the body corporate;

(e) reduce the body corporate’s share capital;

(f) vary or cancel rights or restrictions attached to shares in a class of shares in the body corporate.

Notice to members

(2) As soon as practicable after the statutory manager does an act under subsection (1), the statutory manager must give a written notice:

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

(b) that:

(i) identifies the act; and

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

(3) A contravention of subsection (2) does not affect the validity of anything done under subsection (1).

This section does not permit transfers of shares or business

(4) This section does not permit the statutory manager to effect a transfer of all or part of the shares in the body corporate, or a total or partial transfer of the business of the body corporate, other than in accordance with Division 5 (compulsory transfers).

Exercise of powers despite other laws etc.

(5) A statutory manager may do an act under subsection (1) despite all of the following:

(a) this Act (other than subsection 200(3)) or any legislative instrument made under this Act;

(b) the Corporations Act 2001 or any legislative instrument made under that Act;

(c) the body corporate’s constitution;

(d) any arrangement to which the body corporate is party;

(e) any listing rules of a financial market in whose official list the body corporate is included.