Alien Shareholders Regulations 1921

Legislation au C1921L00039 Regulations Not in force Legislative Instrument

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STATUTORY RULES

1921. No. 39.

REGULATIONS UNDER THE WAR PRECAUTIONS ACT REPEAL ACT 1920.

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 War Precautions Act Repeal Act 1920, to come into operation forthwith.

Dated this sixteenth day of February, 1921.

FORSTER,

Governor-General.

By His, Excellency’s Command,

E. J. RUSSELL,

For the Treasurer.

_____

Alien Shareholders Regulations.

Short title.

1. These Regulations may be cited as the Alien Shareholders Regulations 1921.

Definitions.

2. In these Regulations, unless the contrary intention appears—

“Alien” means any person who is not a British subject, and includes the wife of an alien.

“British subject” means a person who is a natural-born British subject, or a person to whom a certificate of naturalization has been granted, or a person who has become a subject of His Majesty by reason of any annexation of territory.

“Company” means any company incorporated in the Commonwealth.

“The Act” means the War Precautions Act Repeal Act 1920.

Contracts giving interests to certain companies in mining or metallurgical businesses require consent of Treasurer.

3. From and after the date of these Regulations no application, contract or agreement for the purchase or acquisition, in any contingency, of any mine or interest in a mine or of any mining or metallurgical business shall be made, entered into, or renewed by, or on behalf of, any company in which more than one-third of the shares are held by, or on behalf of, aliens, unless the consent in writing of the Treasurer has first been obtained.

Discretion of Treasurer in dealing with applications by certain companies.

4. (1) The Treasurer may, in his absolute discretion, grant to any company in which more than one-third of the shares are held by, or on behalf of, aliens, consent in writing to acquire any mine or interest in a mine or to carry on any mining or metallurgical business.

(2) The Treasurer may attach to any consent such conditions as he thinks fit.

(3) Any person who fails to comply with any of the conditions attached to the consent of the Treasurer shall be guilty of an offence against these Regulations.

Contracts giving aliens shares in companies requires Treasurer’s consent.

5. From and after the date of these Regulations, no application, contract, or agreement for the purchase or acquisition, in any contingency, of any share in any company, shall be made, entered into, or renewed by, or on behalf of, any alien unless the consent in writing of the Treasurer has first been obtained.


Discretion of Treasurer in dealing with applications by aliens.

6. (1) The Treasurer may, in his absolute discretion, grant to any alien, consent in writing to acquire any share in any company.

(2) The Treasurer may attach to any consent such conditions as he thinks fit.

(3) Any person who fails to comply with any of the conditions attached to the consent of the Treasurer, shall be guilty of an offence against these Regulations.

Company to refuse transfer of share to aliens until Treasurer’s consent obtained.

7. The secretary or other proper officer of a company shall refuse to register the transfer or allotment to an alien of a share in any company unless the consent in writing of the Treasurer has first been obtained, and any person who registers a transfer or allotment in contravention of this regulation shall be guilty of an offence against these Regulations.

Applicants for shares to companies to make declarations.

8. (1) Every person applying to he registered as the proprietor of any share in any company shall, if so required by the secretary or other proper officer of the company, make a declaration in a form approved in writing by the Treasurer, or in one of the undermentioned forms, and any person who makes in any such declaration any statement which is untrue in any particular shall be guilty of an offence against these Regulations.

I,     , of    , in the State of   , do solemnly and sincerely declare:—

1. That I am acquiring the shares in     consecutive numbers                 to                                           on my own behalf.

2. That I am not an alien.

(Signature)

Declared at    this    day    of                                           192

Before me

(Note.—This declaration must be made before a Police, Stipendiary, or Special Magistrate, a Justice of the Peace, a Commissioner for Affidavits, a Commissioner for Declarations, or the secretary or other proper officer of the company, and may be indorsed on or incorporated with the instrument of transfer.

I,     , of    , in the State of   , do solemnly and sincerely declare:—

1. That I am acquiring the shares in    consecutive numbers   to                             on behalf of                                          , who is not an alien, and who is at the present time residing in

(Signature)

Declared at    this      day of                192

Before me

 

(Note.—This declaration must be made before a Police, Stipendiary, or Special Magistrate, a Justice of the Peace, a Commissioner for Affidavits, a Commissioner for Declarations, or the secretary or other proper officer of the company and may be indorsed on or incorporated with the instrument of transfer.

(2) Where the secretary or other proper officer of the company has, in pursuance of the last preceding sub-regulation, required a person to make a declaration in one of the forms set out in that sub-regulation or in a form approved by the Treasurer, the secretary, or other proper officer of the company may refuse to register the person as the proprietor of the share in question until the declaration is lodged.


Contracts made in contravention of regulations void.

9. (1) Any contract or agreement entered into or made or renewed, or application granted in contravention of any of these Regulations shall be void and of no effect:

Provided that where the Treasurer in writing declares that he is satisfied that the contravention was due to inadvertence and gives his consent to the contract, agreement, or application, this regulation shall not apply.

Consent of Treasurer— How obtained.

10. A request for the consent of the Treasurer under section 8 of the Act or of any of the provisions of these Regulations shall be made in writing to the Treasurer, and shall be accompanied by a statutory declaration giving such particulars as the Treasurer requires.

Consent of Treasurer may be revoked.

11. Any consent granted by the Treasurer under section 8 of the Act or under any of these Regulations may be revoked by the Treasurer as from a date specified by him, and shall from that date cease to have effect; and any letter, certificate, or other document containing a notification of the granting of such consent shall on demand in writing be delivered up to the Treasurer.

Penalty for making untrue statement.

12. Any person who makes to the Treasurer, or to any officer having duties connected with applications under these Regulations, any statement whether verbal or in writing which is untrue in any particular, shall be guilty of an offence against these Regulations.

Penalty for contravention of regulations.

13. Any person who contravenes or fails to comply with any provision of these Regulations shall be guilty of an offence against these Regulations.

Penalty: One hundred pounds, or imprisonment for six months, or both.

 

 

 

 

_____________________

Printed and Published for the Government of the Commonwealth of Australia by Albert J. Mullett, Government Printer for the State of Victoria.

Overview

The Alien Shareholders Regulations 1921 were introduced under the War Precautions Act Repeal Act 1920 by the Governor-General in Council, providing for the regulation of foreign interests in Australian companies. This legislation was enacted in response to the post-World War I environment, aiming to safeguard Australian mining and metallurgical industries from undue foreign influence. The policy objective was to ensure that companies with significant alien shareholder interests required explicit consent from the Treasurer for certain transactions, thereby maintaining national security and economic control. The Regulations mandated that any contract or agreement for the acquisition of shares or interests in mining or metallurgical businesses by companies with more than one-third alien shareholders, or by aliens themselves, needed written approval from the Treasurer. Failure to comply with these regulations resulted in void contracts and potential penalties. The Treasurer had the discretion to impose conditions on the consent granted, reflecting the government's intent to closely monitor and regulate foreign participation in critical sectors.

Scope and Application

The Alien Shareholders Regulations 1921 apply to any company incorporated in the Commonwealth and to any person, including an alien, who wishes to purchase, acquire, or hold shares in such a company. Specifically, the regulations govern transactions involving the purchase or acquisition of mining or metallurgical businesses, as well as shares in any company, by entities where more than one-third of the shares are held by or on behalf of aliens, or by aliens themselves. These regulations extend throughout the Commonwealth of Australia and are subject to the War Precautions Act Repeal Act 1920. The Treasurer has absolute discretion in granting consent for these transactions and can attach conditions to such consents. The regulations stipulate that any contracts or agreements made in contravention of these provisions are void unless the Treasurer declares satisfaction with the contravention being due to inadvertence and consents to the contract. Additionally, any person making an untrue statement or contravening these regulations is guilty of an offence, with penalties including fines and imprisonment.

Key Provisions

The Alien Shareholders Regulations 1921, made under the War Precautions Act Repeal Act 1920, impose specific controls on the acquisition of shares and interests in mining or metallurgical businesses by companies with a significant number of alien shareholders, as well as by aliens themselves. Section 3 of the Regulations stipulates that any company in which more than one-third of the shares are held by aliens or on their behalf requires written consent from the Treasurer before purchasing, acquiring, or renewing any interest in a mine or a mining or metallurgical business. Similarly, Section 5 mandates that any application, contract, or agreement for the purchase or acquisition of shares in any company by an alien must also receive the Treasurer's written consent. The Treasurer holds absolute discretion over granting or withholding consent under these Regulations, as outlined in Sections 4 and 6. This discretion extends to attaching conditions to the consent, and any failure to comply with these conditions results in an offence against the Regulations. Furthermore, Section 7 requires company officers to refuse the registration of share transfers to aliens unless the Treasurer's consent is obtained in writing, and any contravention of this requirement is also an offence. The Regulations impose several obligations on the parties involved. Companies are mandated to refuse the transfer or allotment of shares to aliens until the Treasurer’s consent is obtained, as stipulated in Section 7. Applicants for shares in companies must make a declaration regarding the acquisition of shares, either in a form approved by the Treasurer or in one of the prescribed forms, and any untruthful statement in these declarations constitutes an offence, as per Section 8. Moreover, any contract or agreement made in contravention of these Regulations is void, unless the Treasurer declares the contravention was due to inadvertence and consents to the contract, as per Section 9. The Regulations also establish consequences and penalties for breaches. Section 13 specifies that any contravention or failure to comply with the Regulations constitutes an offence, with penalties including a fine of one hundred pounds, imprisonment for six months, or both. Additionally, Section 12 imposes penalties for making any untrue statement, whether verbal or written, to the Treasurer or any relevant officer, making such conduct an offence under the Regulations. The Treasurer also has the authority to revoke any granted consent, rendering it ineffective from a specified date, as outlined in Section 11.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.