CORPORATIONS ACT 2001

CHAPTER 6 - TAKEOVERS  

PART 6.4 - FORMULATING THE TAKEOVER OFFER  

Division 2 - Consideration for the offer  

SECTION 623   COLLATERAL BENEFITS NOT ALLOWED  

623(1)   [ Benefits during offer period]  

A bidder, or an associate, must not, during the offer period for a takeover bid, give, offer to give or agree to give a benefit to a person if:


(a) the benefit is likely to induce the person or an associate to:


(i) accept an offer under the bid; or

(ii) dispose of securities in the bid class; and


(b) the benefit is not offered to all holders of securities in the bid class under the bid.

623(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 .

623(2)   [ Receipt of benefit]  

For the purpose of this section, a person does not receive a benefit that is not offered under a takeover bid merely because the person sells bid class securities on-market and the takeover bid is an off-market bid or a conditional bid.

623(3)   [ Limits on prohibition]  

This section does not prohibit:


(a) the variation of a takeover offer as provided by sections 649A to 650D; or


(b) an acquisition of securities through an on-market transaction; or


(c) simultaneous takeover bids for different classes of securities in the target.


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