Corporate Law Economic Reform Program Act 1999 (156 of 1999)

Schedule 7   Miscellaneous amendments of other Acts

Australian Securities and Investments Commission Act 1989

12   Section 123

Repeal the section, substitute:

123 Members to disclose certain interests to Minister

(1) A member must, in accordance with this section, disclose to the Minister:

(a) any direct or indirect pecuniary interest that the member has or acquires in:

(i) a body corporate carrying on business in Australia; or

(ii) a business in Australia; and

(b) any direct or indirect pecuniary interest that the member has or acquires in interests (including securities, futures contracts or other financial products) regulated by the Commission; and

(c) any agreement, understanding or expectation that the member will:

(i) resume a previous business relationship (whether or not that relationship existed immediately before the member’s appointment); or

(ii) enter into a new business relationship;

when the member ceases to be a member; and

(d) any severance arrangement or ongoing financial arrangement that takes account of an agreement, understanding or expectation that must be disclosed under paragraph (c).

(2) For the purpose of paragraph (1)(b), interests are regulated by the Commission if the Commission has a function or power in relation to any aspect of the acquisition, holding, disposal or provision of the interests, or of interests of that kind.

(3) In disclosing an indirect pecuniary interest in securities, futures contracts or other financial products, the member must identify the particular securities, futures contracts or products.

(4) Paragraphs (1)(c) and (d) apply to agreements or understandings entered into, or expectations arising, before or after the member’s appointment.

(5) Paragraph (1)(c) does not require a member to disclose an expectation to enter into a new business relationship unless the member can identify the other party, or one or more other parties, to the relationship. Disclosure is required whether or not the field of business or legal nature of the relationship has been determined.

(6) A disclosure under this section must be made in writing.