Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Act 2025 (72 of 2025)

Schedule 1   Disclosure of information about ownership of listed entities

Part 4   Freezing orders

Corporations Act 2001

61   At the end of Part 6C.3

Add:

Division 2 - Freezing orders

673A Orders in relation to disclosable securities in Chapter 6C bodies

(1) If, in ASIC's opinion, a person has contravened Part 6C.1 or 6C.2 in relation to a Chapter 6C body, ASIC may make one or more of the following:

(a) an order restraining a specified person from disposing of any interest in specified disclosable securities in the Chapter 6C body;

(b) an order restraining a specified person from acquiring any interest in specified disclosable securities in the Chapter 6C body;

(c) an order restraining the exercise of voting or other rights attached to specified disclosable securities in the Chapter 6C body;

(d) an order directing the holder of disclosable securities in respect of which an order under this section is in force to give written notice of that order to any person whom the holder knows to be entitled to exercise a right to vote attached to the disclosable securities;

(e) an order directing the Chapter 6C body not to pay, except in the course of winding up, a sum due from the Chapter 6C body in respect of specified disclosable securities in the Chapter 6C body;

(f) an order directing the body not to register the transfer or transmission of specified disclosable securities in the Chapter 6C body;

(g) an order directing the Chapter 6C body not to issue to a person who holds disclosable securities in the Chapter 6C body disclosable securities the Chapter 6C body proposed to issue to the person:

(i) because the person holds disclosable securities in the Chapter 6C body; or

(ii) under an offer or invitation made or issued to the person because the person holds disclosable securities in the Chapter 6C body;

(h) an order requiring a specified person to dispose of specified derivatives, or to dispose of specified derivatives in a specified manner;

(i) an order restraining the exercise of specified rights under, or compliance with specified provisions of, a derivative.

(2) ASIC may make an order under subsection (1) for any of the following purposes:

(a) if ASIC is satisfied that the rights or interests of any person, or group of persons, have been or are being affected, or will be or are likely to be affected, by the contravention - protecting those rights or interests;

(b) preventing a person who is or has been involved in the contravention from benefiting from the non-compliance;

(c) encouraging a person who is or has been involved in the contravention to rectify the contravention;

(d) protecting ASIC's ability:

(i) to inquire about the contravention; or

(ii) to obtain remedies from a Court or the Takeovers Panel in relation to the contravention.

(3) Subsection (4) applies if ASIC believes that an order ASIC is considering making under subsection (1) would be likely to prejudice the rights or interests of a person who was not and is not involved in the contravention.

(4) Before making the order, ASIC must have regard to:

(a) that prejudice; and

(b) any association, agreement or other relationship the person mentioned in subsection (3) has with any person who was or is involved in the contravention.

(5) To avoid doubt, subsections (3) and (4):

(a) do not limit the matters to which ASIC may have regard in making an order under subsection (1); and

(b) do not require ASIC to come to an opinion as to whether an order would have the effect referred to in subsection (3).

673B Interim orders

(1) If:

(a) in ASIC's opinion, a person has contravened Part 6C.1 or 6C.2 in relation to a Chapter 6C body; and

(b) ASIC is considering making an order under section 673A in relation to the contravention;

ASIC may make, as an interim order, any of the orders mentioned in paragraphs 673A(1)(a) to (i) in relation to the contravention.

(2) An order made under subsection (1) of this section lasts for 21 days after the day on which it is made unless revoked before then.

Note: Subsections 673A(2) to (5) and section 673D do not apply to making an order under subsection (1) of this section.

673C Varying, suspending and revoking orders

Varying orders

(1) ASIC's power under this Division to make an order includes a power exercisable in the like manner and subject to the like conditions to vary any such order.

(2) Subsection 33(3A) of the Acts Interpretation Act 1901 applies for the purposes of subsection (1) of this section in the same way as it applies for the purposes of subsection 33(3) of that Act.

Suspending and revoking orders

(3) ASIC may make an order suspending or revoking an order in force under this Division.

(4) To avoid doubt, if:

(a) ASIC makes an order under this Division because a person fails to comply with a requirement to give information; and

(b) after the order is made, the person gives the information;

ASIC is not required to revoke the order if ASIC believes that the information that is given is different from the information the person would have given if the person had given the information by the time required.

673D Hearings and submissions

Before making:

(a) an order under section 673A; or

(b) an order under subsection 673C(3) suspending or revoking an order in force under section 673A;

ASIC:

(c) may hold a hearing; and

(d) whether or not ASIC holds a hearing - must give a reasonable opportunity to any interested persons to make oral or written submissions to ASIC on whether the order should be made.

673E Manner of making orders under this Division

(1) An order under this Division must be made by notifiable instrument.

(2) If ASIC makes an order (the principal order ) under section 673A or 673B (other than an order varying an order made under that section), ASIC must give a copy of:

(a) the principal order; and

(b) any order made under this Division varying, suspending or revoking the principal order;

to the person to whom the principal order is directed.

673F Orders must be complied with

(1) A person must comply with an order in force under this Division.

Note: Failure to comply with this subsection is an offence: see subsection 1311(1).

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

673G Rights of operators of financial markets and clearing settlement facilities

An order made under this Division does not prejudice or affect a right of an operator of a financial market or clearing and settlement facility:

(a) to cause or enter into a transaction that causes a derivative to be closed out; or

(b) to cause to be registered in a person's name, or to register in a person's name, a derivative that was previously registered in another person's name.

673H Disregard certain exceptions from Part 6C.1

For the purposes of this Division, disregard section 671BC and subsection 671BG(9).

Note: Section 671BC and subsection 671BG(9) exempt a person from giving information or details if the person does not know the information or details despite having taken reasonable steps.