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Film Licensed Investment Company Bill 1998

Part 3 Offences concerning ownership restrictions

   

39   Meaning of terms used in this Part

                   Schedule 1 sets out definitions of expressions used in this Part.

40   Acquisitions of shares

                   If:

                     (a)  a person, or 2 or more persons under an arrangement, acquire shares in a company; and

                     (b)  the acquisition has the result, in relation to a FLIC, that:

                              (i)  an unacceptable foreign ownership situation comes into existence in relation to the FLIC; or

                             (ii)  if an unacceptable foreign ownership situation already exists in relation to the FLIC because there is a group of foreign persons who hold, in total, a particular type of stake in the FLIC of 33% or more—there is an increase in the total of any type of stake held by any group of foreign persons in the FLIC; or

                            (iii)  an unacceptable individual ownership situation comes into existence in relation to the FLIC; or

                            (iv)  if an unacceptable individual ownership situation already exists in relation to the FLIC because there is one or more individuals who hold a particular type of stake in the FLIC of more than 33%—there is an increase in the type of stake held by any of those persons in the FLIC; and

                     (c)  the person or persons mentioned in paragraph (a) were reckless as to whether the acquisition would have that result;

the person or persons mentioned in paragraph (a) are guilty of an offence.

Penalty:  400 penalty units.

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

41   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 restriction on ownership levels set out in section 27; 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 FLIC;

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

             (2)  A person is guilty of an offence if the person contravenes a direction under subsection (1).

Penalty:  400 penalty units.

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