Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 640

  (1)   If:

  (a)   the bidder's voting power in the target is 30% or more; or

  (b)   for a bidder who is, or includes, an individual--the bidder is a director of the target; or

  (c)   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.

Note:   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.

  (2)   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.

  (3)   An offence based on subsection   (1) is an offence of strict liability.

Note:   For strict liability , see section   6.1 of the Criminal Code .