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 13H   APRA must obtain expert ' s report on the fair value of shares etc.  

(1)  
APRA must comply with this section before giving a recapitalisation direction that directs an ADI to issue shares, or rights to acquire shares, in the ADI, unless APRA is satisfied that compliance with this section would detrimentally affect:


(a) the depositors with the ADI; or


(b) the stability of the financial system in Australia.

(1A)  


If the recapitalisation direction is a direction to a NOHC/NOHC subsidiary under subsection 13E(1B) , treat the reference in paragraph (1)(a) to " the depositors with the ADI " as being a reference to " the depositors with the ADI mentioned in subsection 13E(1A) " .

(2)  
APRA must:


(a) obtain a report on the fair value of the shares, or rights to acquire shares, in the ADI from an expert who is not an associate of the company under Division 2 of Part 1.2 of the Corporations Act 2001 ; and


(b) consider the report.

(3)  
The report must set out:


(a) the amount that is, in the expert ' s opinion, the fair value for each of those shares or rights; and


(b) the reasons for forming the opinion; and


(c) any relationship between the expert and:


(i) the ADI; or

(ii) a person who is an associate of the ADI under Division 2 of Part 1.2 of the Corporations Act 2001 ;
including any circumstances in which the expert gives the ADI or person advice, or acts on behalf of the ADI or person, in the proper performance of the functions attaching to the expert ' s professional capacity or business relationship with the ADI or person; and


(d) any financial or other interest of the expert that could reasonably be regarded as being capable of affecting the expert ' s ability to give an unbiased opinion in relation to the matter being reported on.

(4)  


If the recapitalisation direction is a direction to a NOHC/NOHC subsidiary under subsection 13E(1B) , treat the references in paragraph (3)(c) to " the ADI " as being a reference to " the NOHC/NOHC subsidiary mentioned in subsection 13E(1B) " .

 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.