PM Transcripts

FOR PRESS: PM. No. 96, 1968
OVERSEAS TAK( EOVERS OF AUSTRALIAN
COMPANIES
joint Press S3tatement by the Prime Minister and the-
Treasurer
The Government has given consideration to some of the
problems raised as a consequence of attempts by overseas interests to take over
control of Australian companies by market purchases of shaz ( perhaps
in the name of nominees), " first-come first-served" offers for the purchase
of shares, and other such measures designed to avoid the need for
discussion with the company concerned.
The general view strongly held by the Government is that
the shareholders of an Australian company should have the right to amend
the company's Articles of Association for the purpose of ensuring that
control of the company, exercised through the voting power of the shareholders,
remains in Australian hands.
Under the present listing requirements of the Australian
Associated Stock Exchanges, a company is not admitted to the Stock Exchange
lists unless the company's Articles provide for equal voting rights for all
shares of the one class.
The Prime Minister and the Treasurer today discussed tole
matter with Mr C. T. Looker, President of the Australian Associated
Stock Exchanges and informed him of the Government's views. Mr Looker
has undertaken to discuss with members of the Australian Associated Stock
Exchanges an amendment of the provision mentioned.
The provision in question relates only to the voting rights
attaching to a company's shares. The Gvrmn's concern is with control
of Australian companies and with the ability of shareholders of Australian
companies to decide for themselves whether their Articles should contain
provisions restricting the voting rights of shares acquired by overseas
residents. The proposal discussed with Mr Looker will not, if adopted by
the Australian Associated Stock Exchanges, operate to impose restrictions
on overseas ownership of shares in Australian companies or in any way,
inhibit the free transferability of such shares.
CANBERRA December 1968