The Corporations Legislation Amendment (Simpler Regulatory System) Bill 2007 when passed will make amendments to the takeovers provisions in the Corporations Act.
Removal of telephone monitoring during takeover bids
The provisions of the Corporations Act that require the
recording, storing, destroying, accessing
and copying of the recordings of telephone conversations with retail
shareholders during takeover bids are repealed.
The purpose of the subdivision was
to ensure that security holders did not receive information from the
takeover bidder or target that could be considered misleading.
The existing provisions have not increased
the protection of security holders and impose significant costs on the
The repeal of the telephone monitoring
requirements will take effect on the day of Royal
85 per cent notices
The provisions of the Corporations Act that require the disclosure of an 85 per cent holding are repealed.
The provisions were enacted to provide
holders of securities with an advanced warning that the majority holder
is approaching the 90 per cent limit, at which the majority holder can
compulsorily acquire their securities.
However, it is often the case that
the minority are already aware of the majority holder’s position.
For listed entities, other mechanisms in the Corporations Act will mean
that the information is already publicly disclosed.
The repeal of the 85 per cent notice requirement will take effect on the day of Royal