Corporations Act 2001

CHAPTER 6 - TAKEOVERS  

PART 6.9 - OTHER ACTIVITIES DURING THE BID PERIOD  

SECTION 654A   BIDDER NOT TO DISPOSE OF SECURITIES DURING THE BID PERIOD  

654A(1)   [ Prohibition on disposal]  

The bidder must not dispose of any securities in the bid class during the bid period.

654A(1A)   [ Strict liability offence]  

An offence based on subsection (1) is an offence of strict liability.

Note: For strict liability , see section 6.1 of the Criminal Code .

654A(2)   [ Exception]  

Subsection (1) does not apply to a disposal of securities by the bidder if:


(a) someone else who is not an associate of the bidder makes an offer, or improves the consideration offered, under a takeover bid for securities in the bid class after the bidder's statement is given to the target; and


(b) the bidder disposes of the securities after the offer is made or the consideration is improved.

Note: A defendant bears an evidential burden in relation to the matters in subsection (2), see subsection 13.3(3) of the Criminal Code .


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