THE DRY STUFF (WHAT IS FINANCIAL ASSISTANCE?)
The Financial Assistance regime is set at section 2J.3 of the Corporations Act 2001 (Cth) (‘Act’). Financial Assistance is the process whereby a company financially assists a person to acquire shares in the company, or its holding company.
The Act sets the regime for managing Financial Assistance when it is identified as a live issue in a transaction.
While there are:
However, being an administrative process, which involves compliance with ASIC timing requirements, the Whitewash procedure can impose significant strain on transaction deadlines.
Having a proactive legal team is essential in managing Financial Assistance timing issues when they, invariably, present.