Australian Capital Territory Numbered Acts

TERRITORY OWNED CORPORATIONS AMENDMENT ACT 2004 (NO. 53 OF 2004) - SECT 16

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16A     Obligation to tell shareholders about significant events

    (1)     This section applies if the directors of a Territory owned corporation or subsidiary become aware of any significant event that affects, or seems likely to affect—

        (a)     the value of the corporation or subsidiary; or

        (b)     a significant part of the assets of the corporation or subsidiary; or

        (c)     the performance of the corporation or subsidiary as a whole; or

        (d)     the carrying out of a significant activity of the corporation or subsidiary.

Examples of significant events

1     new ventures

2     significant changes to existing activities

Example of significant activities

activities involving significant risk or likely to attract adverse publicity

Note     An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).

    (2)     The directors of the corporation or subsidiary must, as soon as practicable after becoming aware of the event, tell the voting shareholders about the event.

    (3)     For this section, an event is significant for the Territory owned corporation or subsidiary if—

        (a)     it is significant when interpreted in accordance with the accounting standards relating to materiality ordinarily used in Australia at the time the decision about whether it is significant is made; or

        (b)     a document published by the corporation or subsidiary identifies it as significant (however described); or

        (c)     a memorandum of understanding between the corporation or subsidiary and the voting shareholders identifies it as significant (however described); or

        (c)     it is declared under the regulations to be significant.

    (4)     In this section:

"event "includes an activity.