Commonwealth Consolidated Acts

BANKING ACT 1959 - SECT 13F

  (1)   A recapitalisation direction may direct the ADI to issue:

  (a)   shares, or rights to acquire shares, in the ADI; or

  (b)   other capital instruments of a kind specified in the direction.

  (1A)   If the recapitalisation direction is a direction to a NOHC/NOHC subsidiary under subsection   13E(1B), the direction may direct the NOHC/NOHC subsidiary to do any of the following:

  (a)   issue:

  (i)   shares, or rights to acquire shares, in the NOHC/NOHC subsidiary; or

  (ii)   other capital instruments in the NOHC/NOHC subsidiary of a kind specified in the direction;

  (b)   acquire:

  (i)   shares, or rights to acquire shares, in the ADI mentioned in subsection   13E(1A); or

  (ii)   other capital instruments in the ADI mentioned in subsection   13E(1A) of a kind specified in the direction;

  (c)   acquire:

  (i)   shares, or rights to acquire shares, in a specified body corporate covered by subsection   (1B); or

  (ii)   other capital instruments in a specified body corporate covered by subsection   (1B), of a kind specified in the direction.

  (1B)   This subsection covers a body corporate if:

  (a)   the body corporate is a subsidiary of the NOHC/NOHC subsidiary; and

  (b)   the ADI is a subsidiary of the body corporate.

  (1C)   Without limiting the generality of subsections   (1), (1A) and (2), but subject to subsection   (3), a direction referred to in those subsections may:

  (a)   deal with some only of the matters referred to in those subsections; or

  (b)   deal with a particular class or particular classes of those matters; or

  (c)   make different provision with respect to different matters or different classes of matters.

  (2)   A direction for the purposes of paragraph   (1)(a) or subparagraph   (1A)(a)(i), (1A)(b)(i) or (1A)(c)(i) may specify that the shares or rights must:

  (a)   be of a kind specified in the direction; or

  (b)   have the characteristics specified in the direction.

  (3)   A direction for the purposes of paragraph   (1)(b) or subparagraph   (1A)(a)(ii), (1A)(b)(ii) or (1A)(c)(ii):

  (a)   must not specify a kind of capital instrument unless that kind of capital instrument is specified in the regulations; and

  (b)   may specify that the capital instruments must have the characteristics specified in the direction.