Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A PDF may make an investment by subscribing for or buying:
(a) ordinary shares in a company (in this Division called the investee company ); or
(b) some other kind of shares in a company (in this Division also called the investee company ) that the Board approves the PDF investing in.
(2) Unless the Board otherwise approves, the shares must not be pre - owned shares.
(3) The Board may give an approval for the purposes of subsection (2) only if it is satisfied:
(a) that it is in the investee company's best interests for the person who holds the shares to which the investment relates to cease to hold shares in the investee company; and
(b) that that person proposes to dispose of all shares in the investee company that the person holds; and
(c) that the value of the investee company will be increased by the PDF acquiring the shares to which the investment relates; and
(d) that either:
(i) the PDF already holds other shares in the investee company, some or all of which are not pre - owned shares; or
(ii) the PDF will, in connection with acquiring the shares, acquire other shares in the investee company, some or all of which are not pre - owned shares.
(4) A reference in this Part to all amounts paid on shares held by a PDF is, in so far as the shares are pre - owned shares, a reference to:
(a) the amount that the PDF paid for the shares; and
(b) the amounts (if any) paid on the shares since the PDF acquired them.
(5) In this section:
"pre-owned shares" means shares that were issued or allotted to a person other than the PDF, but does not include any such shares that:
(a) were issued:
(i) to an underwriter or sub - underwriter of the share issue; or
(ii) to a person for the purpose of being offered for sale; and
(b) were still held by the underwriter, sub - underwriter or person immediately before being acquired by the PDF.