National Security (Economic Organization) Regulations (Amendment) (Cth)

STATUTORY RULES.

1942. No. 110.

REGULATIONS UNDER THE NATIONAL SECURITY ACT 1939-1940.*

I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the National Security Act 1939-1940.

Dated this ninth day of March, 1942.

GOWRIE

Governor-General.

By His Excellency’s Command,

J. B. CHIFLEY

for and on behalf of the Minister of State for Defence Co-ordination.

 

Amendments of the National Security (Economic Organization)

Regulations. 

1. Parts II., III. and IV. of the National Security (Economic Organization) Regulations are repealed and the following Parts inserted in their stead:—

“Part II.—Limitation of Profits.

Sufficient profits to pay tax to be set aside.

“5.—(1.) Except in the case of unavoidable expenditure or under process of law, a person deriving profits from the carrying on of a business shall not part with such assets as will preclude his paying to the Commissioner of Taxation so much of the profits of the business as exceeds four per centum of the capital employed in the business.

“(2.) This regulation shall not come into operation until a date (not earlier than the first day of July, 1942) fixed in that behalf by resolution of both Houses of the Parliament or by an Act of the Parliament.

 

* Notified in the Commonwealth Gazette on 9th March, 1942.

  Statutory Rules 1942. No. 76, as amended by Statutory Rules 1942, No. 81.

1719.—Price 5d.

 

“Part III.—Prohibition of Transfer of Certain Property.

Certain land transactions forbidden.

“6.—(1.) Except as provided by this Part, a person shall not, without the consent in writing of the Treasurer—

(a) sell any land;

(b) grant an option for the purchase of any land;

(c) grant any lease of land (other than a lease of land to be used by the lessee where the term of the lease does not exceed three years and is to commence not more than three months after the date of the lease);

(d) transfer or assign any lease of land (other than a lease of land to be used by the transferee or assignee where the unexpired portion of the term of the lease does not exceed three years); or

(e) otherwise dispose of any land, except by way of gift, by will or in exercise of a power of appointment under a will.

“(2.) Nothing in this regulation shall prevent—

(a) the sale of land (other than country land)—

(i) where the land has been owned by the seller for not less than twelve months immediately preceding the date of the sale or the sale is by the personal representative of a deceased person, by any trustee of the estate of a deceased person, by a trustee in bankruptcy, by the liquidator of a company in liquidation or by a mortgagee or sub-mortgagee in exercise of a power of sale; and

(ii) where the sale is at a price which does not exceed by more than ten per centum the amount which an independent approved valuer certifies would have been a fair and reasonable price for the land as at the tenth day of February, 1942; or

(b) the sale of any country land at a price which does not exceed by more than ten per centum an amount which would have been a fair and reasonable price for the land as at the tenth day of February, 1942.

“(3.) In the case of any such sale, the seller shall furnish to the Treasurer, within seven days after the date of the sale, or within such further time as the Treasurer allows, such information relating to the land and the sale thereof as the Treasurer requires, and, in the case of land other than country land, the certificate given by the approved valuer under sub-paragraph (ii) of paragraph (a) of the last preceding sub-regulation.

“(4.) Nothing in this regulation shall prevent any transaction by way of renewal or extension of a lease which was in existence prior to the twentieth day of February, 1942.

“(5.) In this regulation—

‘approved valuer’ means the Valuer-General of any State or a person who has had not less than ten years’ continuous experience as a valuer immediately prior to the date of commencement of this regulation and is a member of one of the following bodies:—

(a) Commonwealth Institute of Valuers;

(b) Real Estate Institute of New South Wales;

 

(c) Stock and Station Agents Association of New South Wales;

(d) The Real Estate and Stock Institute of Victoria;

(e) Real Estate Institute of Queensland;

(f) Real Estate Institute of South Australia;

(g) Auctioneers, Land and Estate Agents Association of Western Australia;

(h) Real Estate Institute of Tasmania;

‘country land’ means land used for not less than twelve months immediately preceding the date of the sale for agricultural, pastoral, horticultural, viticultural, apicultural, dairy farming, poultry farming or other like purposes.

Certain sharetransactionsforbidden.

“7.—(1.) Except as provided by this Part, a person shall not, without the consent in wanting of the Treasurer—

(a) sell any shares, stock or debentures of a company;

(b) grant an option for the purchase of any such shares, stock or debentures; or

(c) otherwise dispose of any such shares, stock or debentures, except by way of gift, by will or in the exercise of a power of appointment under a will.

“(2.) Nothing in the last preceding sub-regulation shall prevent—

(a) the sale by any person of any shares, stock or debentures which have been registered in the name of that person for not less than five months; or

(b) the sale of any shares, stock or debentures by the personal representative of a deceased person, by any trustee of the estate of a deceased person, by a trustee in bankruptcy, by the liquidator of a company in liquidation or by a mortgagee or sub-mortgagee in exercise of a power of sale.

“(3.) A person who buys any shares, stock or debentures of a company which are officially listed by a recognized Stock Exchange in Australia except through a member of such an Exchange, shall furnish to the Treasurer, within seven days after the date of the purchase, or within such further period as the Treasurer allows, a statutory declaration specifying the price paid for the shares, stock or debentures.

“(4.) A member of a recognized Stock Exchange who sells any shares, stock or debentures of a company otherwise than at an official meeting of that Stock Exchange, shall furnish particulars thereof to the Stock Exchange and the Stock Exchange shall record the particulars so furnished.

“(5.) A person who sells any shares, stock or debentures of a company shall tender a transfer thereof to the buyer within twenty-one days after the date of the sale, or within such further time as the Treasurer allows, and the buyer shall forthwith after the tender make payment therefor in full.

“(6.) A person shall not borrow or lend any money for the purpose of enabling the borrower to pay for any shares, stock or debentures of a company purchased, or to be purchased, by him.

 

“(7.) The Treasurer may, after consultation with the Committee of the Associated Stock Exchanges of Australia, by order, determine the maximum and minimum prices at which any shares, stock or debentures of a company may be sold.

“(8.) Where the Treasurer makes any such order, a person shall not buy or sell any shares, stock or debentures of a company to which the order relates at a price above the maximum price or below the minimum price fixed in respect thereof.

“(9.) For the purposes of this regulation (other than sub-regulation (4.) thereof) where a member of a recognized Stock Exchange sells or buys any shares, stock or debentures of a company on behalf of another person, that member shall not be deemed to have sold or bought those shares, but the person on whose behalf they were sold or bought shall be deemed to have sold or bought them, as the case may be.

Certain transactions not affected.

“8. Nothing in this Part shall prevent—

(a) any transaction to give effect to a contract or agreement entered into prior to the twentieth day of February, 1942;

(b) the exercise of any option given before that date;

(c) any transaction—

(i) by way of mortgage or sub-mortgage;

(ii) by way of discharge of a mortgage or sub mortgage;

(iii) by way of transfer or assignment of a mortgage to a guarantor who, in pursuance of the terms of his guarantee, has repaid the whole or part of the moneys due under the mortgage;

(d) any property, or any interest in any property, from vesting in the personal representative of a deceased person, in any trustee of the estate of a deceased person, in a trustee in bankruptcy or in the liquidator of a company in liquidation; or

(e) the execution of any deed of assignment under Part XI. of the Bankruptcy Act 1924-1933 or of any deed of arrangement under Part XII. of that Act.

Exemptions and consents.

“9.—(1.) The Treasurer may, either unconditionally or subject to such conditions as he specifies in the order, by order published in the Gazette, exempt from the application of the whole or any of the provisions of this Part any person or class of persons or any transaction or class of transactions.

“(2.) Where application is made for the consent of the Treasurer under this Part, the Treasurer may, in his absolute discretion, grant the consent, either unconditionally or subject to such conditions as he thinks fit, or refuse to grant the consent.

“(3.) Where any consent or exemption is granted subject to conditions, a person shall comply with all such conditions as are applicable to him.

Validation of transactions.

“10.—(1.) Where any transaction is entered into in contravention of this Part or of Part VI of these Regulations, or where any condition to which the transaction is subject is not complied with, the transaction

 

shall not thereby be invalidated, and the rights, powers and remedies of any person thereunder shall be the same as if these Regulations had not been made.

“(2.) Nothing in this regulation shall affect the liability of any person to any penalty in respect of any contravention of these Regulations.

Members of StockExchangesto bring breaches of Regulations to notice of Treasurer.

“10a. Where any member of a Stock Exchange suspects, or has reason to believe, that any person has been guilty of a contravention of this Part, he shall forthwith notify the Treasurer accordingly.

Registrar of Titles, &c., may require evidence that transactions are not in contravention of Regulations.

“10b.—(1.) The Registrar of Titles or other proper officer of any State or Territory of the Commonwealth may, upon submission to him for registration of any instrument relating to a transaction in connexion with any land, require such evidence as he deems necessary that the transaction to which the instrument relates is not in contravention of any provisions of these Regulations and may refuse to register the instrument until such evidence is submitted to him.

“(2.) Upon submission to a company of a transfer of any shares, stock or debentures of the company which have not been registered in the name of the transferor for at least five months, the company shall, unless it is satisfied that the transaction to which the transfer relates is not in contravention of any of the provisions of these Regulations, report the facts to the Treasurer and shall not register the transfer until the company has received from the Treasurer a statement in writing that the Treasurer has no objection to the registration of the transfer.

“Part IV.—Interest Rates.

Fixing of interest rates.

“11.—(1.) Subject to any direction of the Treasurer, the Commonwealth Bank may, by order published in the Gazette, fix maximum rates of interest in respect of—

(a) any money lent, advanced or deposited;

(b) any credit given, either directly or in consequence of any purchase by instalments, or by hire-purchase or letting agreement, or by the issue of cash orders, whether the interest is payable as such or is added to the purchase price or otherwise; or

(c) any other form of debt whatsoever,

whether security is given or not.

“(2.) Any such order may be in respect of all such rates of interest, or in respect of the rate or rates of interest payable in respect of any such transaction or classes of transactions as are specified in the order, and the rate or rates so fixed may vary as between any such transaction or classes of transactions, but no such order shall be made in respect of any transaction, other than—

(a) a loan by a bank, or by a declared pastoral company within the meaning of the National Security (Capital Issues) Regulations, by way of overdraft repayable on demand, or on demand to be made after the expiration of a period not exceeding twenty-eight days from the date of the loan; or

(b) a deposit (not being a fixed deposit) with a bank,

entered into before the date of the order.

1719.—2

 

Interest not to exceedmaximum fixed.

“12.—(1.) A person shall not, without the consent in writing of the Commonwealth Bank, in respect of any period after the date on which any order under the last preceding regulation is published in the Gazette, pay or charge interest at a rate higher than the rate applicable under the order.

“(2.) Any sum charged as interest in contravention of this regulation shall be a debt due by the person to whom it was paid to the person by whom it was paid and may be recovered in any court of competent jurisdiction.

“(3.) The remedy for enforcing any covenant or agreement to pay interest shall be limited to enforcing payment at a rate not exceeding the maximum rate applicable under this Part.

“(4.) A person shall not, without the consent in writing of the Commonwealth Bank, in respect of any loan, advance, deposit or debt in respect of which a maximum rate of interest is applicable under this Part—

(a) repay or pay, or receive by way of repayment or payment, any amount in excess of the amount of the loan, advance, deposit or debt; or

(b) make any payment the effect of which is that the loan, advance or deposit is given or made at a discount, or the borrower, or person to whom the advance is made or with whom the deposit is made, does not receive the benefit of the full amount borrowed, advanced or deposited.

“(5.) Nothing in the last preceding sub-regulation shall prevent the payment or receipt of any amount representing capitalized interest, or rates, taxes, insurance, repairs or other outgoings paid or incurred by a lender for the enforcement, protection or preservation of his security, or any costs, charges or expenses paid or incurred by a lender under or in relation to his security.

Part not to apply to interest paid byCommonwealth.

“13. Nothing in this Part shall apply to any interest payable by the Commonwealth.”

2. Regulation 21 of the National Security (Economic Organization) Regulations is repealed and the following regulation inserted in its stead:—

Contracts to evadeRegulations.

“21. A person shall not—

(a) enter into any contract or agreement purporting to do whether presently or at some future time or upon the happening of any contingency, anything forbidden by Part III. of these Regulations; or

(b) enter into any transaction, or make any contract or arrangement, whether orally or in writing, for the purpose of or which has the effect of, in any way, whether directly or indirectly, defeating, evading or avoiding, or preventing the operation of Part III. or Part IV. of these Regulations in any respect.”.

Commencement.

3. These Regulations shall come into operation on a date to be fixed by the Treasurer by notice published in the Gazette.

 

By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra.