Zed Seselja (ACT, Liberal Party, Assistant Minister for Treasury and Finance) Share this | Hansard source

Once a proprietary company has a successful CSF offer, without a specific exemption the general takeover provisions would apply as the company would have more than 50 shareholders, whether CSF, employee or other. An exemption from the takeover provisions is consistent with a light-touch regulatory approach to the CSF regime. The takeover rules are very complex and would be difficult and costly for proprietary companies to understand and comply with. While there will be no legislative provisions on takeovers, it is common for proprietary companies to have tag rights in their constitutions which allow smaller shareholders to participate in a buyout. Proposed revisions to regulations for the CSF regime will ensure that the existence or not of these rights is disclosed in the CSF offer document. In terms of sale of assets, related party rules would apply.