---
title: "Check the compulsory acquisition thresholds after a bid"
url: "https://ailawframework.com/practice/mergers-and-acquisitions-private-equity/check-the-compulsory-acquisition-thresholds-after-a-bid"
type: "task"
site: "AI Law Framework"
id: "A2-TM20261022-12"
practice_area: "Mergers & Acquisitions / Private Equity"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Check the compulsory acquisition thresholds after a bid

> Using figures the lawyer supplies, record whether the bidder and associates are at least at 90 per cent by number of the bid class, and whether they have acquired at least 75 per cent by number of the securities the…

Canonical page: https://ailawframework.com/practice/mergers-and-acquisitions-private-equity/check-the-compulsory-acquisition-thresholds-after-a-bid  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Mergers & Acquisitions / Private Equity](https://ailawframework.com/practice/mergers-and-acquisitions-private-equity.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Using figures the lawyer supplies, record whether the bidder and associates are at least at 90 per cent by number of the bid class, and whether they have acquired at least 75 per cent by number of the securities the bidder offered to acquire. Record whether the lawyer has marked the bid as an off-market bid for all the securities in the bid class, or as a market bid. Do not calculate relevant interests from the register and do not draft a notice. |
| What the lawyer must review | The lawyer decides whether section 661A(1) is met, whether any interest should be disregarded under section 608(3), and whether to ask the Court to allow an acquisition if the threshold is not met. The lawyer reads section 661B before any notice is sent. |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

**Source-by-source verification**

Trace relied-on content to independent sources and check for relevant material the output has missed.

- What the AI does: Using figures the lawyer supplies, record whether the bidder and associates are at least at 90 per cent by number of the bid class, and whether they have acquired at least 75 per cent by number of the securities the bidder offered to acquire. Record whether the lawyer has marked the bid as an off-market bid for all the securities in the bid class, or as a market bid. Do not calculate relevant interests from the register and do not draft a notice.
- What the lawyer does: The lawyer decides whether section 661A(1) is met, whether any interest should be disregarded under section 608(3), and whether to ask the Court to allow an acquisition if the threshold is not met. The lawyer reads section 661B before any notice is sent.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. Both figures are required during, or at the end of, the offer period: at least 90 per cent by number of the bid class, and at least 75 per cent by number of the securities the bidder offered to acquire, whether or not the acquisition was under the bid.
2. The bid must be an off-market bid to acquire all the securities in the bid class, or a market bid. The power continues even if the 90 per cent later fails because further securities are issued.
3. Disregard a relevant interest the bidder has merely because of section 608(3). That section was not opened. The lawyer confirms it before an interest is left out.
4. Subsection (3) says the Court may allow compulsory acquisition even if the threshold is not reached. It does not state the test. Do not invent one.
5. If the power is used, the bidder must acquire all bid-class securities issued or granted before the end of the offer period in which the bidder does not have a relevant interest. Elections about later securities depend on the notice under section 661B, which was not opened.

## Notes

- These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.

## Sources

- [Corporations Act 2001 s 661A, compulsory acquisition after a bid](https://classic.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s661a.html) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/mergers-and-acquisitions-private-equity/check-the-compulsory-acquisition-thresholds-after-a-bid/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*