In a statement released by ASIC, the regulator said the asset management firm pleaded guilty to the Melbourne Magistrates’ Court on 16 December 2014 and was fined $40,000.
“The company pleaded guilty to breaching takeover provisions and failing to alert the market it had acquired a substantial stake in AG Financial Limited, over five months in 2013,” ASIC said.
ASIC commissioner Cathie Amour said investors are entitled to know the identity of major shareholders of publicly traded companies.
“ASIC expects businesses to comply with important takeover laws that promote market integrity and provide significant safeguards when the control of a listed company changes,” Ms Amour said.
The regulator pointed out that Avestra was charged with three counts of the unlawful acquiring of relevant interests in voting shares (section 606 of the Corporations Act) and three counts of failing to lodge substantial shareholder notices (section 671B of the Corporations Act).
“Section 606 sets out that a person must not acquire a relevant interest in issued voting shares in a company if to do so would take that person’s voting power from 20 per cent or below to more than 20 per cent, or from a starting point that is above 20 per cent and below 90 per cent,” ASIC said.
“The law also sets out a shareholder in a publicly traded company must notify the market if its holding reaches five per cent, and it must give details of any arrangements with third parties that affect control of the shares,” it said.
“The shareholder is also required to update the market every time there is a one per cent change in the holding,” ASIC said.
