Section 640 — Corporations Act 2001: Expert’s report to accompany target’s statement if bidder connected with target

(1) If: (a) the bidder’s voting power in the target is 30% or more; or (b) for a bidder who is, or includes, an individual—the bidder is a director of the target; or (c) for a bidder who is, or includes, a body corporate—a director of the bidder is a director of the target; a target’s statement given in accordance with section 638 must include, or be accompanied by, a report by an expert that states whether, in the expert’s opinion, the takeover offers are fair and reasonable and gives the reasons for forming that opinion. Note: Subsections 648A(2) and (3) provide for the independence of the expert and disclosure of any association between the target and the expert or the bidder and the expert. A contravention of one of those subsections results in the target’s statement not complying with this subsection. (2) In determining whether the bidder’s voting power in the target is 30% or more, calculate the bidder’s voting power at the time the bidder’s statement is sent to the target. (3) An offence based on subsection (1) is an offence of strict liability. Note: For strict liability, see section 6.1 of the Criminal Code.