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What happens after you notify us of a merger, acquisition or amalgamation

Reviewing your circumstances

When you notify us that you’re planning or have been involved in a merger, acquisition, amalgamation or similar change of control, we review your circumstances and consider:

  • the amount of information you provided to clearly explain the arrangements
  • any concerns we may have about the performance of your organisation and the others involved
  • whether there’s any change to your organisation’s objectives (as stated in the governing document) and how this aligns with the funded program services you’re contracted to deliver
  • whether we consider the change of control poses any risk to delivery of the funded services.

In addition, if you requested to transfer your contract, we consider:

  • whether the substitute party is already contracted by us
  • whether engaging the substitute party will cause any conflict of interest
  • any concerns we may have about the capacity and/or capability of the substitute party
  • whether the organisation objectives of the substitute party (as stated in their governing document) align with the funded program services.

If we require additional information to make our decision, we’ll contact you or any relevant party involved in the change of control. This means we may contact the substitute party if you requested to transfer your contract to them.

Notifying you of our decision

We’ll let you know if and how your contract is affected, in writing, within 4 weeks of receiving a completed Notice from you.

This timeframe is an estimate, subject to variation, and is dependent on the specific nature of the change of control. We’ll notify you if we require more time to consider your circumstances.

You may appeal our decision, in writing, in which case you must explain the grounds of your appeal. However, we reserve the right to make the final decision, and whether to accept or reject your appeal.

Reasons we may terminate your contract

We may choose to terminate your contract if we reasonably believe the change of control materially affects your ability to perform your obligations agreed in the contract. We may also terminate your contract without providing any particular reason.

Determining whether to novate your contract

If you requested to transfer your contract, we’ll let you know if we consent to it.

A request to transfer your contract doesn’t automatically guarantee we’ll consent to the request. We may choose or be required to go to the sector and procure the contracted services from a new organisation through a formal tender process.

If we consent to a contract with the substitute party, it may be subject to certain additional or varied terms and conditions. If so, they’ll be explained with our decision.

If we determine that the substitute party is ineligible for a contract with us, we’ll give you the reasons.

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Last updated: 26 Nov 2019