21Grant of licence

21 Grant of licence

(1) Subject to subsections (2) and (2A), the Board may grant or refuse to grant a licence to an applicant and where the Board grants a licence it shall specify in the licence the amount of approved capital of the licensee for the purposes of this Act. (1A) For the purposes of subsection (1), the approved capital of the licensee is an amount equal to or exceeding the amount of the applicant’s paid‑up share capital on the day on which the licence is granted. (2) The Board shall not grant a licence to an applicant under section 20 if: (a) the amount of the paid‑up share capital of the applicant is less than $200,000 or such other amount, if any, as is prescribed; (b) an order under Part II of the Foreign Acquisitions and Takeovers Act 1975 is in force in relation to the applicant and has not been complied with; or (c) the applicant is not an Australian company. (2A) Where an applicant’s paid‑up share capital is less than the relevant amount, then, even if the applicant’s authorised share capital is not less than that amount, the Board shall not grant a licence to the applicant unless the applicant provides the Board with a declaration under subsection (2B). (2B) A declaration shall be signed by the secretary of the applicant and shall state that undertakings in writing by persons to subscribe, if the applicant is granted the licence, to shares in the applicant such that the applicant’s paid‑up share capital will not be less than the relevant amount have been made and will be made available for inspection by the Board at a place determined by the Board. (3) Where the Board is of the opinion that, by reason of the amount of approved capital of licensees specified in relation to a financial year by the Minister under section 18, fewer licences may be granted than there are satisfactory applicants, the Board shall grant the licences to those applicants that it considers are likely if licensed to assist most effectively the formation and development of prescribed business entities. (4) A licence granted under this section expires, if not sooner revoked, on: (a) in the case of a licence granted in December in any year—31 December in the next following year; or (b) in any other case—31 December next following the date on which the licence was granted. (4A) A licence granted under this section that is in force on the date of commencement of this subsection expires, if not sooner revoked, on 31 December 1986. (5) The Board may: (a) impose conditions when granting a licence under this section or, by notice in writing served on the licensee, at any time when the licence is in force; and (b) at any time when the licence is in force, by notice in writing served on the licensee, vary or revoke any of the conditions of the licence or impose further conditions. (6) In this section, relevant amount means the amount of $5,000,000 or, where the regulations prescribe another amount for the purpose of this section, that other amount.