WK 10 Takeovers, financial services and markets

-Financial markets need to be regulated

to ensure they are transparent,
equitable and competitive
-Less than 20% is no control, after you
are edging towards control
-Relevant interest is holistic ie including
all associates/subsidiaries

-You can do what you want, until you reach

the 20% mark then you must follow these
criteria
-Fairness aspect involves allowing enough
time for targeted shareholders to consider
information and understand financial
ramifications (not rushed into decision)
-Ie after 20% there are various regulations
you must adhere to before you gain more
shares (these are expensive ie legal fees to
acquiring past this point)

-If the numbers are met, you can force the

remaining shareholders to sell (at highest
possible price)

-Beneficial is under 1 business name, ie not

through associates
-If

you hold at over 90% for 6

months you can make the
other sell
-How companies actually
get control
-s611 how to get through
threshold
-If you have 19%, if you wait 6months you can creep at 3%
-Friendly takeovers is a merger

-Directors fiduciaries duties to

shareholders through their

advice/recommendations (no conflict of
interest) as well as statutory duties ie
care/diligence and 182/183 and
according civil penalties ^also670

-^Regulating share trading

-ASX is run by the ASX ltd (public
company)
-ASIC takes over the policing aspect
-Serious penalties including civil and
criminal proceedings

-Ensuring artificial fluctuations don't alter market price and thus investor confidence
(we only demand and supply to alter)

-^IT creates risk free trading

-Defences: trader argues it is generally available
killed himself)

Rivkin was jailed (then