Banking Act 1959
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) " .
(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
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
(ii) a person who is an associate of the ADI under Division 2 of Part 1.2 of the Corporations Act 2001 ;
(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) " .
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