Banking Act 1959

Part II - Provisions relating to the carrying on of banking business  

Division 2 - Protection of depositors  

Subdivision AA - Recapitalisation directions by APRA  

SECTION 13F   Additional contents of a recapitalisation direction  

(1)  
A recapitalisation direction may direct the ADI to issue:


(a) shares, or rights to acquire shares, in the ADI; or


(b) other capital instruments of a kind specified in the direction.

(1A)  


If the recapitalisation direction is a direction to a NOHC/NOHC subsidiary under subsection 13E(1B) , the direction may direct the NOHC/NOHC subsidiary to do any of the following:


(a) issue:


(i) shares, or rights to acquire shares, in the NOHC/NOHC subsidiary; or

(ii) other capital instruments in the NOHC/NOHC subsidiary of a kind specified in the direction;


(b) acquire:


(i) shares, or rights to acquire shares, in the ADI mentioned in subsection 13E(1A) ; or

(ii) other capital instruments in the ADI mentioned in subsection 13E(1A) of a kind specified in the direction;


(c) acquire:


(i) shares, or rights to acquire shares, in a specified body corporate covered by subsection (1B); or

(ii) other capital instruments in a specified body corporate covered by subsection (1B), of a kind specified in the direction.

(1B)  


This subsection covers a body corporate if:


(a) the body corporate is a subsidiary of the NOHC/NOHC subsidiary; and


(b) the ADI is a subsidiary of the body corporate.

(1C)  


Without limiting the generality of subsections (1), (1A) and (2), but subject to subsection (3), a direction referred to in those subsections may:


(a) deal with some only of the matters referred to in those subsections; or


(b) deal with a particular class or particular classes of those matters; or


(c) make different provision with respect to different matters or different classes of matters.

(2)  


A direction for the purposes of paragraph (1)(a) or subparagraph (1A)(a)(i), (1A)(b)(i) or (1A)(c)(i) may specify that the shares or rights must:


(a) be of a kind specified in the direction; or


(b) have the characteristics specified in the direction.

(3)  


A direction for the purposes of paragraph (1)(b) or subparagraph (1A)(a)(ii), (1A)(b)(ii) or (1A)(c)(ii):


(a) must not specify a kind of capital instrument unless that kind of capital instrument is specified in the regulations; and


(b) may specify that the capital instruments must have the characteristics specified in the direction.




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