Trustee Companies (Amendment) Act 1989 (NSW)

TRUSTEE COMPANIES (AMENDMENT) ACT 1989 No. 42

NEW SOUTH WALES

TABLE OF PROVISIONS

1.     Short title

2. Commencement

3. Amendment of Trustee Companies Act 1964 No. 6

4.      Transitional provision

SCHEDULE 1—AMENDMENTS

TRUSTEE COMPANIES (AMENDMENT) ACT 1989 No. 42

NEW SOUTH WALES

Act No. 42, 1989

An Act to amend the Trustee Companies Act 1964 to replace restrictions relating to the share capital of certain trustee companies with a requirement to insure or provide a guarantee against certain liabilities; and for other purposes. [Assented to 11 May 1989]

Trustee Companies (Amendment) 1989

The Legislature of New South Wales enacts

Short title

1.     This Act may be cited as the Trustee Companies (Amendment) Act

1989.

Commencement

2. (1) This Act commences on a day or days to be appointed by proclamation.

(2) A day shall not be appointed for the commencement of Schedule 1

(7) unless the provision to be inserted by Schedule I (7) has been approved by the Ministerial Council for Companies and Securities in accordance with the agreement made on 22 December 1978 between the Commonwealth and the States (a copy of which is set out in Schedule I to the National Companies and Securities Commission (State Provisions) Act 1981).

Amendment of Trustee Companies Act 1964 No. 6

3. The Trustee Companies Act 1964 is amended as set out in Schedule

I.

Transitional provision

4. (1) The Treasurer shall, as soon as practicable after the commencement of Schedule 1(1), transfer any debentures or inscribed stock purchased before that commencement in the name of the Treasurer under section 10 of the Trustee Companies Act 1964 to the trustee company for which the debentures are or inscribed slock is held in trust.

(2) Any interest and income accruing in respect of any debentures or inscribed slock on or after that commencement and before its transfer under this section shall be paid, on or before that transfer, by the Treasurer to the trustee company for which the debentures are or inscribed stock is held in trust.

SCHEDULE I—AMENDMENTS

(Sec. 3)

(1) Section 10—

Omit the section, insert instead;

Assets of trustee company liable for proper administration of estates

10. All the capital both paid and unpaid and all other assets of any trustee company shall be liable for the proper administration of ail estates of which the trustee company acts as executor or administrator.

Act No. 42

Trustee Companies (Amendment) 1989

SCHEDULE 1—AMENDMENTS—

(2) Section 1 5b (Maintenance etc. of minor or incapable person)—

After section )5b (5), insert:

(6) The powers conferred on a trustee company by this section may be exercised by the trustee eompany in respect of money held by the trustee company to which a minor or incapable person is entitled even though the trustee company held the money before the commencement of this section.

(3) Section 15c (General powers of trustee company)—

After “ this Act” where firstly occurring, insert	‘(whether before
or after the commencement of this section)” ,

(4) Section 25—

Omit the section, insert instead:

Court may order winding-up

25. If it is proved that three-fourths or more—

(a)	of the amount of capital authorised by this Act to be called up by a trustee company (other than a trustee company referred to in paragraph (b)); or
(b)	in the case of the Permanent Trustee Company Limited, the Perpetual Trustee Company Limited or Perpetual Trustees Australia Limited, of the amount of capital called up by the trustee company,

has been lost by that trustee company, the Court may, on the application of any member or creditor of the trustee company or cestui que trust, make an order for the winding-up of the trustee company,

(5) Section 36 (Provisions continued in force)—

Section 36 (3)—

Omit the subsection.

(6) Section 36a—

After section 36, insert:

Indemnities

36a. (1) The Permanent Trustee Company Limited, the Perpetual Trustee Company Limited and Perpetual Trustees Australia Limited—

(a) shall arrange with an approved insurer, and keep in force at all times, an approved policy of indemnity insurance for an amount that is not less than the amount prescribed in respect of the trustee company concerned; or

Trustee Companies (Amendment) 1989

SCHEDULE 1—AMENDMENTS—

(b) shall instead, with the approval of the Attorney General, lodge with the Attorney General an approved bank guarantee as an indemnity to secure the payment of an amount that is not less than the amount prescribed in respect of the trustee company concerned.

(2) A trustee company referred to in subsection (1) shall, at the request of the Attorney General, produce evidence of any insurance required to be arranged and kept in force by the trustee company under this section.

(3) In this section. ‘approved” means approved by the

Attorney General.

(7) Section 36b—

Before section 37, insert:

Unpaid capital of Permanent Trustee Company Limited

36b, Nothing in section 114 (2) of the Companies (New South Wales) Code prevents the Permanent Trustee Company Limited from varying, by special resolution, the portion of its unpaid share capital that is not capable of being called up.

(8) Second Schedule—

(a) Omit the matter relating to the Permanent Trustee Company Limited, insert instead:

PERMANENT TRUSTEE COMPANY LIMITED

The issued capital of the company shall not be at any time reduced to less than $12,000,000.

(b) Omit the matter relating to the Perpetual Trustee Company Limited, insert instead:

PERPETUAL TRUSTEE COMPANY LIMITED

The issued capital of the company shall not be at any time reduced to less than $8,000,000.

(c) Omit “THE UNION-FIDELITY TRUSTEE COMPANY OF AUSTRALIA LIMITED” , insert instead “TRUST COMPANY OF AUSTRALIA LIMITED” .

Act No. 42

Trustee Companies (Amendment) 1989

SCHEDULE 1—AMENDMENTS—

(d) Omit the matter relating to Perpetual Trustees Australia Limited, insert instead;

PERPETUAL TRUSTEES AUSTRALIA LIMITED

The issued capita) of the company shall not be at any time

reduced to less than $24,000,000.

(e) Omit “NATIONAL TRUSTEES EXECUTORS AND AGENCY COMPANY OF AUSTRALASIA LIMITED”, insert instead “NATIONAL MUTUAL TRUSTEES LIMITED” .

[Minister's second reading speech made in—

Legislative Asseinhiy on 12 April 1989

Legislative Council on 3 May 1989]