Acquisition of subsidiaries
14 Acquisition of subsidiaries
A territory-owned corporation or a subsidiary must not enter into a specified transaction if, as a result of the transaction, a company would or could become a partially owned subsidiary of the territory‑owned corporation or subsidiary.
In this section:
partially owned subsidiary means a company that—
is a subsidiary, within the meaning of the Corporations Act, of a territory-owned corporation or subsidiary; and
not all of the issued share capital of which is held by or on behalf of the corporation or subsidiary.
specified transaction means—
the participation, whether direct or indirect, in the formation of a company; or
the acquisition of shares in a company; or
an agreement to underwrite the issue of shares in a company or proposed company; or
the lending of money on the security of shares in a company.
This Act’s bill:Explanatory statement
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