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.





This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.