8AYAMinister for Finance may direct Telstra not to dilute the Commonwealth’s equity in Telstra etc.

8AYA Minister for Finance may direct Telstra not to dilute the Commonwealth’s equity in Telstra etc.

Equity‑dilution conduct (1) For the purposes of this section, equity‑dilution conduct is conduct that: (a) will result, or is likely to result, in a dilution of the Commonwealth’s equity in Telstra; and (b) is not carried out under a Telstra sale scheme. (2) In determining whether conduct is equity‑dilution conduct, regard must be had to the economic and commercial substance of the conduct. (3) Subsection (2) does not, by implication, limit subsection (1). Security‑issue conduct (4) For the purposes of this section, security‑issue conduct is conduct that consists of the issue of a security or a financial product. Notification of proposal to engage in equity‑dilution conduct or security‑issue conduct (5) Before engaging in particular equity‑dilution conduct or security‑issue conduct, Telstra must give the Minister for Finance a written notice: (a) setting out details of Telstra’s proposal to engage in that conduct; and (b) giving Telstra’s reasons for that proposal. (6) A notice under subsection (5) must be given to the Minister for Finance not later than: (a) 30 days before engaging in the equity‑dilution conduct or security‑issue conduct; or (b) if the Minister for Finance allows a shorter period—the beginning of that shorter period. Direction not to engage in equity‑dilution conduct or security‑issue conduct (7) The Minister for Finance may, by written notice given to Telstra, direct Telstra not to engage in specified equity‑dilution conduct or specified security‑issue conduct.

Note: For specification by class, see subsection 46(3) of the Acts Interpretation Act 1901.

(8) Telstra must comply with a direction under subsection (7). Sanction (9) A breach of this section is not an offence. However, a breach of this section is a ground for obtaining an injunction under Division 1 of Part 2B. Future Fund and Communications Fund (10) For the purposes of this section, if a share in Telstra is an investment of the Future Fund or the Communications Fund, the share is taken to be held by a person other than the Commonwealth. Direction (11) A direction under subsection (7) is not a legislative instrument for the purposes of the Legislative Instruments Act 2003. Definitions (12) In this section:

financial product has the same meaning as in Chapter 7 of the Corporations Act 2001.

security has the same meaning as in Chapter 7 of the Corporations Act 2001.

the Commonwealth includes a category A hybrid‑security issuer company.