16Orders requiring transfer of shares in liable entities

#### 16 Orders requiring transfer of shares in liable entities 16 Orders requiring transfer of shares in liable entities > > (1) The Minister may, by order served on a relevant company, instruct the company and its directors and other officers to take such steps as are necessary under the Corporations Act and any other relevant law (whether written or unwritten) to transfer any or all of the shares that it holds in a liable entity to the person or persons specified in the order during the day or within the period specified in the order. > > > (2) A relevant company on which an order made under subsection (1) is served must comply with the order. > > > > Maximum penalty—1,000 penalty units. > > > > Note— > > > > If a relevant company contravenes this subsection, section 67 operates to make each person who is a director of the company or who is concerned in the management of the company liable for the offence if the person knowingly authorised or permitted the contravention. > > > (3) If a relevant company holds shares to which an order under subsection (1) applies on trust or for the benefit of another person, any beneficial interest of the other person in the shares is extinguished on the transfer of the shares to the specified person or persons. > > > (4) Nothing in subsection (3) prevents the Minister from requiring any shares in a liable entity to be transferred to the SPF trustee to be held in trust for the purposes of the SPF. > > > (5) No compensation is payable for any of the following— > > > > > (a) the loss of any legal or beneficial interest in shares resulting from the transfer of the shares in compliance with an order under subsection (1) (including the extinguishment of a person’s beneficial interest in shares by operation of subsection (3)), > > > > > (b) any costs or other expenses incurred by a person in complying with an order under subsection (1). > > > (6) It is taken to be a provision of the constitution of each relevant company that, if the relevant company and its directors and other officers fail to comply with an order served on it under subsection (1) by the end of the day or period specified in the order— > > > > > (a) the shares in the liable entity are, by the operation of this subsection, taken to be transferred to the person or persons specified in the order at the end of that day or period, and > > > > > (b) the order is taken, for all purposes, to constitute a proper instrument of transfer for those shares, and > > > > > (c) the provisions of paragraphs (a) and (b) have effect despite any other provisions of the constitution of the company. > > **s 16:** Am 2006 No 108, Sch 1 \[9\].