The Australian Takeovers Panel Two Years On
2 May 2002
History of the Panel
- 1969 Eggleston Committee 2nd Interim Report
- 1981 CASA - NCSC section 60 power
-
1991 Corporations Law
- Panel power to declare unacceptable conduct or acquisition
-
2000 CLERP
- section 659B Dispute resolution role
Volume
- NCSC - 11 s60 declarations 1981-1990
- ASC - 4 applications to the Panel 1991-2000
-
Post Clerp
- 2000 - 22
- 2001 - 30
- 2002 - 5
- Comparison with court volume?
Philosophy of the Panel
-
What?
- "the main forum for resolving disputes about a takeover until the bid period has ended" (s 659AA)
- Commercial resolution of disputes
- Finding out what's wrong and fixing it
-
Getting a takeover back on track
- in real time
Philosophy of the Panel
-
Why?
- Flexibility, speed & certainty
- Avoid tactical litigation and legalism
- Reduce costs
And
- Raise standards of documentation & behaviour generally
- Ensure clarity and equality of information as between shareholders and in the marketplace
- Encourage equal treatment of shareholders
-
How?
- Primary body dealing with takeover matters during a bid (s659B)
- Court proceedings can only be initiated by ASIC or Government during a bid (s659B)
- Court can stay its proceedings during a takeover bid (s659B(2))
- Only money damages awarded after Panel declines application (s659C)
- Review ASIC decisions (s656A)
Philosophy of the Panel
The Panel can make
- a declaration of unacceptable circumstances (s657A)
- a wide range of orders (s657D & s657E)
- rules to clarify or supplement Chapter 6 (s658C)
- procedural rules for its proceedings (s195 ASIC Act)
- decisions on ASIC modifications
Powers of the Panel
Unacceptable Circumstances (s657A)
-
The circumstances must
- relate to the "affairs of the company"
-
be unacceptable
-
having regard to their effect on
- the control, or potential control, of that company or another company or
- an acquisition of a substantial interest in that company or another company; or
- because they constitute or give rise to a contravention of Chapter 6, 6A, 6B or 6C
-
having regard to their effect on
-
Focus is first upon circumstances not first on conduct
- Panel will look to the effects of the circumstances and may later look at the intention or conduct of the person who caused the circumstances to arise
- Focus is not primarily on legality
- Focus on Eggleston Principles
- Panel must consider the public interest
Unacceptable Circumstances (s657A)
Who can apply?
- Previously only ASIC 4
-
Now, any interested person
- Bidder 24
- Rival Bidder 11
- Target 16
- Shareholders 3
- ASIC 3
- Other 1
Current Members Jan 2002 (45)
Executive
- Director
- Counsel
- Legal Secondees
- Office Manager
- Support, Policy, Liaison, Preparation
- Not delegates
- Lvl 47, 80 Collins St, Melbourne 3000
Panel Matters 2000 - (22)
- Infratil/AIF Nos. 1&2
- Email/Smorgon Nos 1-3
- IAMA/Futuris
- Pinnacle No 1
- Brickworks/GPG Nos 1&2
- QCT/Metcoal
- Advance/Mirvac
- St Barbara/Taipan
- Ashton/De Beers
- Taipan 1 - 6
- Pinnacle 2
- Realestate.com.au
- Taipan 7
Panel Matters 2001 - (30)
- Pinnacle 03
- Taipan 8
- Taipan 9
- Taipan 10
- Vincorp
- Pinnacle 04
- Namakwa 01
- Pinnacle 05
- Namakwa 02
- Taipan11
- Pinnacle 06
- Pinnacle 07
- Alpha
- Namakwa 03 & 04
- Pinnacle 08
- ALG
- Bigshop 01, 02, 03
- Pinnacle 09 & 09(b)
- Pinnacle 10 & 11
- Normandy 1 - 6
- Broncos 01 & 2
Panel Matters 2002 - (6)
- Broncos 03
- Normandy 07
- Focus Technologies
- Broncos 04
- Pasminco
- Precious Metals Australia
- Ballarat Goldfields
Analysis - Type of Applications
-
Review of ASIC Decisions 6
- Affirmed 3 - Overturned 2 - Current 1
- Unacceptable Circumstances 41
-
Review of Panel Decisions 9
- Affirmed 6 - Varied 3
- ASIC Referral 2
Grounds for Unacceptable Circumstance Applications
- efficient competitive informed market - 24
- identity of acquirer - 1
- reasonable time to consider - 1
- adequate information in documents - 26
- equality of opportunity - 6
- Other - 10
Analysis - Outcomes
- Application
-
Convene three members
- conflicts, availability, experience, etc
- Review - Reg 20 threshold
- Brief - Panel defines the landscape
- Submissions & Rebuttals - Parties
-
Further questions from Panel
- Conference, Supplementary brief
- Decision - Reasons
- Orders
- Post Mortem
Process
-
Published
- 1 Unacceptable Circumstances
- 2 Review of Decisions
- 3 Making Rules
- 4 Remedies and Enforcement
- 5 Restraining Documents
- 6 Break Fees
- Procedural Rules
-
Current Work
- Forecasts
- Costs
- Frustrating Action
Policy
- Conflicts
- Rulings
- Funding Arrangements
-
Web page containing
- policies
- procedures
- decisions
- Post mortems after matters to get feedback
- Panel workshops and discussions to ensure consistency
- Liaison with practitioners
Panel Initiatives
Implications of Panel for Takeovers
-
Eggleston focus
- if strictly legal focus - you just don't get it
- No strategic delay
- More negotiating with bidder/target
- Commercial resolutions
- Will require better disclosure
- No draconian penalties
- Perhaps more schemes of arrangement
Future challenges for the Panel
-
Consistency
- Panel days, three members, post mortems
- Workload
- Constitutional challenge
-
Jurisdictional interrelation with courts
- chipping away
- Power
- Scope
Conclusion
- To be fully effective the Panel must enjoy the support of the whole business community - Senator Chapman 12/5/99
- The Panel will be a test of the goodwill of the business community in Australia in taking some responsibility for its own actions - Mr Joe Hockey MP 3/6/99
- Name Organisation Location
- Mr Simon McKeon, Macquarie Bank Limited Melbourne (President)
- Ms Robyn Ahern Company Director Perth
- Ms Ilana Atlas Westpac Banking Corporation Ltd Sydney
- Ms Eliz. Alexander AM PricewaterhouseCoopers Melbourne
- Justice Bob Austin Supreme Court of NSW Sydney
- Dr Annabelle Bennett SC Sydney Bar Sydney
- Mr Michael Burgess University of South Australia Adelaide
- Mr Tony Burgess Deutsche Bank Melbourne
- Ms Carol Buys AMP Consulting P/L Sydney
- Mr Denis Byrne Denis Byrne & AssociatesP/L Brisbane
- Mr Peter Cameron Credit Suisse First Boston Sydney
- Ms Luise Elsing Australian Stock Exchange Sydney
- Ms Kathleen Farrell Freehills Sydney
- Mr David Gonski Morgan Stanley Dean Witter Sydney
Members
- Ms Teresa Handicott Corrs Chambers Westgarth Brisbane
- Mr Brett Heading McCullough Robertson Brisbane
- Ms Meredith Hellicar Company Director Sydney
- Mr Braddon Jolley Freehills Sydney
- Mr John King NZ Takeovers Panel Auckland
- Dr Tro Kortian University of Sydney Sydney
- Ms Alison Lansley Mallesons Stephen Jaques Melbourne
- Ms Irene Lee Company director Sydney
- Mr Kevin McCann Allens Arthur Robinson Sydney
- Ms Alice McCleary Deloitte Touche Tohmatsu Adelaide
- Ms Marie McDonald Blake Dawson Waldron Melbourne
- Ms Maria Manning Queensland Cotton Brisbane
- Ms Louise McBride Delloitte Touche Tohmatsu Sydney
- Ms Marian Micalizzi Company Director Brisbane
- Mr Simon Mordant Caliburn Partnership P/L Sydney
Members
- Ms Robyn Pak-Poy Minter Ellison Adelaide
- Mr Chris Photakis KPMG Corporate Finance P/L Sydney
- Prof Ian Ramsay The University of Melbourne Melbourne
- Mr Scott Reid JPMorgan Sydney
- Ms Maxine Rich Consultant Sydney
- Ms Fiona Roche Estates Development Co. Perth
- Mr Trevor Rowe Salomon Smith Barney Sydney
- Justice Kim Santow Supreme Court of NSW Sydney
- Mr Jeremy Schultz Finlaysons Adelaide
- Ms Jennifer Seabrook Gresham Partners Perth
- Ms Celia Searle Wickham Chambers Perth
- Mr Leslie Taylor Commonwealth Bank of Aust. Sydney
- Mr Michael Tilley Merrill Lynch International Melbourne
- Mrs Nerolie Withnall Company Director Brisbane
- Ms Karen Wood BHP Billiton Melbourne
- Mr Peter Young ABN-AMRO Sydney