51ABZZPPerson must cease to hold shares

51ABZZP Person must cease to hold shares

(1) If:

(a) the Commission makes a determination under paragraph 51ABZE(1)(a) in respect of a notification of an acquisition; and

(b) the acquisition is put into effect to any extent at a time at which, because of subsection 51ABZZM(2) or (3), the acquisition is not stayed; and

(c) an application for review of the determination is made under subsection 100C(1); and

(d) either:

(i) on the review, the Tribunal determines that the acquisition must not be put into effect; or

(ii) the result of the review is that the acquisition is subject to a condition to which it would not have been subject apart from the review, that condition was not complied with and the non‑compliance occurred before the Tribunal makes its determination on the review;

then, within 12 months after the Tribunal makes that determination, the person must cease to hold the shares.

(2) ASIC may extend the period within which the person must cease to hold the shares under subsection (1) if the person applies for the extension before the end of the period.

(3) ASIC must not extend the period more than once.

(4) Any voting rights attached to the shares cannot be exercised while the person continues to hold the shares.

(5) If, at the end of the 12 months (or extended period), the person still holds the shares, the person commits an offence for each day while that situation continues.

Penalty: 20 penalty units.

(6) An offence based on subsection (5) is an offence of strict liability.

Note: For strict liability, see section 6.1 of the Criminal Code.

(7) A contravention of this section does not affect the validity of any transaction.

(8) Furthermore, if voting rights are exercised in contravention of subsection (4), the meeting or the resolution on which the voting rights were exercised will be invalid on that ground only if:

(a) the Court (within the meaning of the Corporations Act 2001) is of the opinion that:

(i) a substantial injustice has been caused or may be caused; and

(ii) the injustice cannot be remedied by any order of the Court; and

(b) the Court declares the meeting or resolution invalid.