A wider range of transactions involving foreign investors will
require notification (or earlier notification) to the Foreign
Investment Review Board, under a Bill now before Parliament.
Importantly, the Bill is retrospective to 12 February 2009, the
date on which the Government announced its intention to change the
law. This means that transactions since that date may now need to
be notified to FIRB.
Background
Since 1975, acquisitions of shares in Australian companies by
foreign investors have been subject to the Foreign Acquisitions And
Takeovers Act. Where the value of the company exceeds a prescribed
monetary threshold, acquisitions resulting in the holding of
"substantial interests" by a foreign person of 15% or
more (or by 2 or more foreign persons of 40% or more) must be
notified to FIRB. FIRB then advises the Commonwealth Treasurer
whether the acquisition should be prohibited on the grounds that it
would be contrary to the national interest.
