Compulsory transfer of shares in body corporate
Transfer of all or part of the shares in a CS facility licensee (1) The Reserve Bank may, in writing, make a determination that there is to be a transfer of all or part of the shares in a CS facility licensee (the target body) to another body corporate (the receiving body) if: (a) the Reserve Bank reasonably believes that the transfer is appropriate to manage or respond to a condition in section 831A being satisfied in relation to the licensee; and (b) the Minister consents to the transfer in writing; and (c) the Reserve Bank is satisfied that the board of the receiving body consents to the transfer. Note: An expert report on fair value may be required before taking action: see section 849CB. Transfer of all or part of the shares in a related body corporate (2) The Reserve Bank may, in writing, make a determination that there is to be a transfer of all or part of the shares in a body corporate (the target body) to another body corporate (the receiving body) if: (a) the Reserve Bank has made, or intends to make, a determination under subsection (1) that there is to be a transfer of shares in a CS facility licensee to another body corporate; and (b) the Reserve Bank reasonably believes that the transfer to the receiving body is appropriate to manage or respond to a condition in section 831A being satisfied in relation to the licensee; and (c) the target body is, or before the transfer of shares from the licensee referred to in paragraph (a) of this subsection was, a related body corporate of the licensee; and (d) the target body is incorporated in Australia; and (e) the Minister consents to the transfer in writing; and (f) the Reserve Bank is satisfied that the board of the receiving body consents to the transfer. Note: An expert report on fair value may be required before taking action: see section 849CB. Determination (3) A determination made under subsection (1) or (2) must include: (a) particulars of the transfer, including: (i) the names of the target body and the receiving body; and (ii) whether it will be a transfer of all or part of the shares; and (iii) if it will be a transfer of part of the shares—an indication of the shares that are to be transferred; and (b) a statement of the reasons why the determination has been made. (4) A determination made under subsection (1) or (2) is not a legislative instrument. Notice (5) The Reserve Bank must give a copy of a determination made under subsection (1) or (2) to the target body and the receiving body.
Sourced from the Federal Register of Legislation at 17 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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