The mechanism for such transfer will be via Umbrella Charitable Trusts that are managed by banks, insurance companies and trustee companies. The Umbrella Charitable Trust can only make gifts to charitable entities as recognised by the ATO as having gift deductible status.
Any such transfer will be subject to limits in order to maintain the principles underlying escrow. As a requirement of any transfers under the new rule, details of the arrangement will need to be fully disclosed to the market by the usual mechanisms.
Announcing the new initiative, Mr John McMurtrie, Executive General Manager, Companies & Investors, said: "Since July 1999, for new companies that have listed on ASX we estimate over $2.5 billion of shares at current market values are held in escrow. Therefore, we believe that the amended rule has the potential to provide significant community benefit without having an impact on the principles of the escrow."
