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Financial Sector (Shareholdings) Bill 1998

Part 3 Anti-avoidance

   

31   Anti-avoidance

             (1)  If:

                     (a)  one or more persons enter into, begin to carry out or carry out a scheme; and

                     (b)  it would be concluded that the person, or any of the persons, who entered into, began to carry out or carried out the scheme or any part of the scheme did so for the sole or dominant purpose of avoiding the application of any provision of Part 2 in relation to any person or persons (whether or not mentioned in paragraph (a)); and

                     (c)  as a result of the scheme or a part of the scheme, a person (the stakeholder ) increases the stakeholder’s stake in a financial sector company;

the Treasurer may give the stakeholder a written direction to cease holding that stake within a specified time.

Offence

             (2)  A person is guilty of an offence if:

                     (a)  the person is subject to a direction under subsection (1); and

                     (b)  the person intentionally contravenes the direction.

Penalty:  400 penalty units.

Note:          Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Definitions

             (3)  In this section:

increase , in relation to a stake in a company, includes an increase from a starting point of nil.

stake , in relation to a company, has the same meaning as in Schedule 1.