Section 837B — Corporations Act 2001: Compulsory transfer of business of body corporate

Total or partial transfer of business of CS facility licensee (1) The Reserve Bank may, in writing, make a determination that there is to be a total or partial transfer of business of a CS facility licensee from the licensee (the target body) to another body corporate (the receiving body) if: (a) the Reserve Bank reasonably believes that the transfer is appropriate to manage or respond to a condition in section 831A being satisfied in relation to the licensee; and (b) the Minister consents to the transfer in writing; and (c) the Reserve Bank is satisfied that the board of the receiving body consents to the transfer. Note: An expert report on fair value may be required before taking action: see section 849CB. Total or partial transfer of business of related body corporate (2) The Reserve Bank may, in writing, make a determination that there is to be a total or partial transfer of business from a body corporate (the target body) to another body corporate (the receiving body) if: (a) the Reserve Bank has made, or intends to make, a determination under subsection (1) that there is to be a total or partial transfer of business from a CS facility licensee to another body corporate; and (b) the Reserve Bank reasonably believes that the transfer to the receiving body is appropriate to manage or respond to a condition in section 831A being satisfied in relation to the licensee; and (c) the target body is, or before the transfer of business from the licensee referred to in paragraph (a) of this subsection was, a related body corporate of the licensee; and (d) the target body is incorporated in Australia; and (e) the Minister consents to the transfer in writing; and (f) the Reserve Bank is satisfied that the board of the receiving body consents to the transfer. Note: An expert report on fair value may be required before taking action: see section 849CB. Determination (3) A determination made under subsection (1) or (2) must include: (a) particulars of the transfer, including: (i) the names of the target body and the receiving body; and (ii) whether it will be a total or a partial transfer; and (iii) if it will be a partial transfer—an indication of the part of the target body’s business that is to be transferred; and (b) a statement of the reasons why the determination has been made. (4) A determination made under subsection (1) or (2) is not a legislative instrument. Notice (5) The Reserve Bank must give a copy of a determination made under subsection (1) or (2) to the target body and the receiving body.