Category: Financial / Legal / Administrative / Political

The power to take private property for public use by a state, municipality, or private person or corporation authorized to exercise functions of public character, following the payment of just compensation to the owner of that property. On 13 March 2000, Part 6A.2 of the Corporations Law was introduced as part of the Corporate Law Economic Reform Program (CLERP) to enable a person with a full beneficial interest in at least 90% of any class of securities in a company to compulsorily acquire the outstanding securities in that class. That power must be exercised within six months of becoming a 90% holder. Previously, compulsorily acquisitions could only take place following a takeover bid and the legislation provided only for the compulsory acquisition of shares A recent example of compulsory acquisition is such as when BG undertook the compulsory acquisition of the remaining shares in Queensland Gas Company which it does not already own. As at the end of trading on 4 December 2008, BG AUS had increased its stake in QGC to 96.62% of the issued share capital by way of the recommended on-market offer announced on 28 October 2008, it was able to move to compulsory acquisition of the outstanding QGC shares it does not own by lodging a compulsory acquisition notice

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