Effect of proper ASTC transfer on transferee: rights
7.11.28 Effect of proper ASTC transfer on transferee: rights
If a proper ASTC transfer of a Division 4 financial product that is rights (other than rights that relate to an interest in a managed investment scheme) takes effect at a particular time, the transferee is taken:
to have applied at that time to the issuer in relation to the rights for the issue to the transferee of the Division 4 financial product to which the rights relate; and
to have agreed at that time to accept the Division 4 financial product to which the rights relate subject to the terms and conditions on which the issuer offers them for subscription.
If the Division 4 financial product to which the rights (other than rights that relate to an interest in a managed investment scheme) relate is shares, the transferee is also taken to have agreed, at that time:
to become a member of the issuer; and
to be bound, on being registered as the holder of the shares, by the issuer’s constitution.
If the Division 4 financial product is a right to an interest in a managed investment scheme, the transferee is also taken to have agreed at that time:
to have applied at that time to the responsible entity in relation to the rights for the issue to the transferee of the interest in a managed investment scheme to which the rights relate; and
to have agreed at that time to accept the interest in a managed investment scheme to which the rights relate subject to the terms and conditions on which they are offered by the responsible entity; and
to become a member of the managed investment scheme; and
to be bound by the constitution of the managed investment scheme to the extent that:
the transferee will comply with any requirement imposed on the transferee by the constitution; and
the transferee will not impede compliance by another person with any requirement imposed on the other person by the constitution.
In this regulation:
right means a right, whether existing or future, and whether contingent or not, of a person to have any of the following issued to the person, whether or not on payment of any money or for any other consideration:
a share in a company (including a body to which section 1073C of the Act applies);
a debenture of a company (including a body to which section 1073C of the Act applies);
an interest in a registered scheme mentioned in regulations made under paragraph 1073A(1)(c) of the Act.
This Act’s bill:Explanatory statement
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