Expert’s report to accompany target’s statement if bidder connected with target
640 Expert’s report to accompany target’s statement if bidder connected with target
If:
the bidder’s voting power in the target is 30% or more; or
for a bidder who is, or includes, an individual—the bidder is a director of the target; or
for a bidder who is, or includes, a body corporate—a director of the bidder is a director of the target;
a target’s statement given in accordance with section 638 must include, or be accompanied by, a report by an expert that states whether, in the expert’s opinion, the takeover offers are fair and reasonable and gives the reasons for forming that opinion.
Subsections 648A(2) and (3) provide for the independence of the expert and disclosure of any association between the target and the expert or the bidder and the expert. A contravention of one of those subsections results in the target’s statement not complying with this subsection.
In determining whether the bidder’s voting power in the target is 30% or more, calculate the bidder’s voting power at the time the bidder’s statement is sent to the target.
An offence based on subsection (1) is an offence of strict liability.
For strict liability, see section 6.1 of the Criminal Code.
This Act’s bill:Explanatory memorandumSecond reading speech
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