Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) APRA must comply with this section before giving a recapitalisation direction that directs a life company to issue shares, or rights to acquire shares, in the company, unless APRA is satisfied that compliance with the section would detrimentally affect:
(a) the policy owners of the company; or
(b) the stability of the financial system in Australia.
(1A) If the recapitalisation direction is a direction to a NOHC/NOHC subsidiary under subsection 230AB(1B), treat the reference in paragraph (1)(a) to "the policy owners of the company" as being a reference to "the policy owners of the life company mentioned in subsection 230AB(1A)".
(2) APRA must:
(a) obtain a report on the fair value of the shares, or rights to acquire shares, in the company from an expert who is not an associate of the company under Division 2 of Part 1.2 of the Corporations Act 2001 ; and
(b) consider the report.
(3) The report must set out:
(a) the amount that is, in the expert's opinion, the fair value for each of those shares or rights; and
(b) the reasons for forming the opinion; and
(c) any relationship between the expert and:
(i) the company; or
(ii) a person who is an associate of the company under Division 2 of Part 1.2 of the Corporations Act 2001 ;
including any circumstances in which the expert gives the company or person advice, or acts on behalf of the company or person, in the proper performance of the functions attaching to the expert's professional capacity or business relationship with the company or person; and
(d) any financial or other interest of the expert that could reasonably be regarded as being capable of affecting the expert's ability to give an unbiased opinion in relation to the matter being reported on.
(4) If the recapitalisation direction is a direction to a NOHC/NOHC subsidiary under subsection 230AB(1B), treat the references in paragraph (3)(c) to "the company" as being a reference to "the NOHC/NOHC subsidiary mentioned in subsection 230AB(1B)".