Commonwealth Consolidated Acts

TELSTRA CORPORATION ACT 1991 - SECT 8BH

    If:

  (a)   a person, or 2 or more persons under an arrangement, acquire shares in a company; and

  (b)   the acquisition has the result, in relation to a Telstra successor company, that:

  (i)   an unacceptable foreign - ownership situation comes into existence in relation to the Telstra successor company; or

  (ii)   if an unacceptable foreign - ownership situation already exists in relation to the Telstra successor company because there is a group of foreign persons who hold, in total, a particular type of stake in the Telstra successor company of more than 35%--there is an increase in the total of any type of stake held by any group of foreign persons in the Telstra successor company; or

  (iii)   if an unacceptable foreign - ownership situation already exists in relation to the Telstra successor company because there is or are one or more foreign persons each of whom holds a particular type of stake in the Telstra successor company of more than 5%--there is an increase in any type of stake held by any of those foreign persons; and

  (c)   the person or persons mentioned in paragraph   (a) knew, or were reckless as to whether, the acquisition would have that result;

the person or persons mentioned in paragraph   (a) commit an offence punishable on conviction by a fine not exceeding 400 penalty units.

Note:   A person's stake is calculated on the assumption that the only shares in a Telstra successor company are shares held by persons other than the Commonwealth--see clause   12 of the Schedule.