Treasury Legislation Amendment (Repeal Day) Act 2015 (2 of 2015)

Schedule 3   Amendment of the Financial Sector (Shareholdings) Act 1998

Financial Sector (Shareholdings) Act 1998

1   Section 8

Repeal the section, substitute:

8 Simplified outline of this Part

If a person holds a stake in a financial sector company that exceeds the allowed percentage, the Federal Court may make orders to ensure that the situation ceases to exist.

A person commits an offence if, by acquiring shares in a company (alone or under an arrangement with others), the person causes or worsens such a situation.

A person’s stake is the percentage of voting power in the company controlled by the person and the person’s associates.

The allowed percentage is 15% or a higher percentage approved by the Treasurer for the person on national interest grounds.

A person who holds a stake of no more than 15% of a financial sector company may be declared by the Treasurer to have practical control of the company. The person must then take steps to end that control.

The regulations may require records to be kept, and information to be given, for purposes relating to these restrictions.