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Securities
Practical Law ANZ Glossary w-001-4806 (Approx. 4 pages)
Glossary
Securities
For the purposes of the Corporations Act 2001 (Cth) (CA 2001), securities of a body corporate generally include:
- A share in the body corporate.
- A debenture of the body corporate.
- An interest in a managed investment scheme (MIS).
- A unit of a share, debenture or interest in a managed investment scheme.
The definition of security is modified slightly where it is used in certain Parts and Chapters of the CA 2001, including:
- For the purposes of Part 1.2A (regarding disclosing entities) and Chapter 6 of the CA 2001 (regarding takeovers) and Part 8B.7 (regarding control, financial services and disclosure), a security also generally includes a legal or equitable right in, or option to acquire (by way of issue or transfer), shares, debentures or interests in an MIS (section 92(2A) and section 92(3), CA 2001).
- For the purposes of Chapter 6D (regarding fundraising), section 700 of the CA 2001 provides that a security generally includes:
- a share in a body;
- a debenture of a body;
- a legal or equitable right or interest in a share or debenture of a body; or
- an option to acquire, by way of issue, any of the above.
- For the purposes of Chapter 7 (regarding financial services and markets) except Part 7.11, section 92(5) of the CA 2001 provides that a security generally includes:
- a share in a body; or
- a debenture of a body; or
- a legal or equitable right or interest in a share or debenture of a body; or
- an option to acquire, by way of issue, any of the above; or
- a right (whether existing or future and whether contingent or not) to acquire by way of issue, the following under a rights issue: a security covered by the above; a managed investment product; a foreign passport fund product; or an interest or right covered by section 764A(ba).
- For the purposes of Part 7.11 of the CA 2001 (regarding title and transfer of securities), section 92(6) of the CA 2001 provides that a security generally includes:
- a security as defined in section 92(5) of the CA 2001; or
- a managed investment product; or
- a foreign passport fund product.
Generally speaking, a security does not include a derivative.
For the purposes of the ASX Listing Rules, a security is an equity security or a debt security (ASX Listing Rule 19.12).
If referring to securities in the context of a finance transaction, see security.