NO.095

Amendment to Takeovers Law

The Treasurer today released the draft Corporations Amendment (Takeovers) Bill 2006 for public exposure.

The Bill will amend provisions in Chapter 6 of the Corporations Act 2001 which relate to takeovers and the powers of the Takeovers Panel.

Two recent decisions relating to the Takeovers Panel interpreted the limits of the jurisdiction of the Takeovers Panel, as set out in the current legislation. As a result of those cases, concerns were raised that it may be open to read the Panel’s powers and jurisdiction in a way that is too narrowly formulated to enable the Panel to perform effectively the role envisaged for it by Parliament.

The Bill is designed to ensure that the market for control of companies and their shares continues to operate effectively and efficiently and that the Panel continues to contribute to that outcome. When enacted, the Bill will ensure the Panel can continue to act in an effective, efficient and expeditious manner as the primary forum for resolving disputes during takeover bid periods, relying on the specialist expertise of its members, so that the outcome of any takeover bid can be resolved by the target shareholders on the basis of its commercial merits.

The Treasurer encouraged all with an interest in this issue to respond to the provisions of the draft Bill.

Written comments on the draft Bill should be received by 5 October 2006 and may be submitted by mail, fax or email to:

Corporations Amendment (Takeovers) Bill 2006
Corporations and Financial Services Division

The Treasury

Langton Crescent

PARKES ACT 2600

Fax: 02 6263 2770
corporationstakeoversbill@treasury.gov.au

The draft Corporations Amendment (Takeovers) Bill 2006 and explanatory material is to be found at www.treasury.gov.au.

CANBERRA

7 September 2006

Contact: Renae Stoikos

02 6277 7340