Corporations
Amendment Regulations 2009 (No. 5)1
Select Legislative Instrument 2009 No. 103
I, QUENTIN
BRYCE, Governor‑General of the Commonwealth of Australia, acting with the
advice of the Federal Executive Council, make the following Regulations under
the Corporations Act 2001.
Dated 4 June 2009
QUENTIN BRYCE
Governor‑General
By Her Excellency’s Command
NICK SHERRY
1 Name
of Regulations
These Regulations are the Corporations Amendment Regulations 2009 (No. 5).
2 Commencement
These Regulations commence on the day after they
are registered.
3 Amendment of Corporations
Regulations 2001
Schedule 1 amends the Corporations Regulations
2001.
Schedule 1 Amendment
(regulation 3)
[1] After regulation 7.9.97
insert
7.9.97A Information in offer
document if payment is to be made in instalments
(1) For paragraph
1019I (2) (f) of the Act, the following information is specified for
an offer document if payment for the financial products mentioned in the
document is to be made in instalments:
(a) the amount of each instalment;
(b) when each instalment will be paid;
(c) how many instalments will be paid;
(d) how each instalment will be paid;
(e) the following text, replacing X with the
total present value of the instalments and Y with the total current value of the
financial products:
‘Money loses value over time. In this case, the
value of the total instalment payments being offered to you is approximately
the same as being paid a single amount of $X today. $X represents the ‘present
day value’ of the instalment payments. Commonwealth legislation sets out a
method for calculating the present value of the offer, using the rate of
interest of 1.1% per month. You can assess this offer by comparing the present
day value of the instalment payments ($X) with the total market price of your
shares or other financial products ($Y).
‘In general, if the present day value of the
instalment payments being offered is less than the market price of your shares
or other financial products, then this offer may not be fair to you.’
(2) For this regulation, the total present value
of a series of instalment payments is the amount:
where:
n is the number of instalment payments to be
made.
Rp
is the amount of instalment payment number p, where each instalment payment
is assigned a number from l to n.
tp
is the number of whole months between the date of offer and the date that the
instalment number p is due.
(3) For this regulation, the total current value
of a financial product is the market value for the product on the date of offer
as mentioned in paragraph 1019I (2) (b) of the Act or the fair estimate
of the value of the product on the date of offer as mentioned in paragraph 1019I (2) (c)
of the Act, as applicable.
(4) For this regulation, all money amounts must be
represented in Australian currency.