11. MARYAN STREET (Labour) Link to this
to the Minister of Commerce
Has she received any reports of deals being structured as schemes of arrangement and amalgamations in order to avoid the Takeovers Code; if so, what steps is she taking to address this issue?
Hon LIANNE DALZIEL (Minister of Commerce) Link to this
The outgoing chair, John King, and the new chair, David Jones, have renewed the Takeovers Panel’s calls for these issues to be addressed. When the earlier call was made public last year an amendment to the Securities Legislation Bill was proposed on the basis that we should not wait for another piece of legislation. Then the Government proposed an out-of-scope amendment to the Business Law Reform Bill to address an aspect of its concerns. The first was proposed by the National Party, and the second was opposed by the National Party. I have now referred the matter back to the Takeovers Panel. I am confident it will report a solution that will be acceptable to everyone.
Why has the matter been referred back to the Takeovers Panel when it has already reported once on this matter?
Hon LIANNE DALZIEL Link to this
Since the time of the Takeovers Panel’s report, the Government has announced a new regulatory impact analysis framework to take effect from 1 April 2007. I have asked the Takeovers Panel to include a regulatory impact statement with its report. This is the first time that this measure has been adopted. This will strengthen the process and is consistent with this Government’s approach to ensuring quality regulation. The Takeovers Panel has welcomed the reference and has issued a statement today saying it will commence the work immediately and, in so doing, will consult further with the commercial community.
Simon PowerWhat does the Minister say to current minority shareholders who, while she orders another review, potentially have to bear the consequences of a loophole that Pansy Wong suggested should be closed in the first place, through an amendment during the Committee stage of the Securities Legislation Bill, 7 months ago?
Hon LIANNE DALZIEL Link to this
I would ask them why the National Party had not supported the amendment to the Business Law Reform Bill.