ASIC Class Order [CO 00/0345]

Overview

The Australian Securities and Investments Commission Corporations Law — Subsection 669(1) Exemption Instrument 2000, issued under subsection 669(1) of the Corporations Law, was enacted to address a specific gap in regulatory requirements concerning notices to companies with a single member or wholly-owned subsidiaries. This legislative instrument, dated 1 March 2000, was introduced by the Australian Securities and Investments Commission (ASIC) to streamline and rationalise certain notification obligations that could be burdensome for small entities, thereby reducing regulatory compliance costs without compromising the overall integrity of corporate governance. The policy objective, as stated in the text, is to provide relief to entities that would otherwise be subject to unnecessary administrative requirements due to their simple ownership structure.

Scope and Application

The legislative instrument F2007B00067 pertains to an exemption provided by the Australian Securities and Investments Commission (ASIC) under subsection 669(1) of the Corporations Law. This exemption applies to all persons who would otherwise be required to give a notice to a company that is either a sole-member entity or a wholly-owned subsidiary, as stipulated in subsections 665D(3) and 665D(4) of the Corporations Law. The exemption is intended to alleviate the burden on certain small or subsidiary companies by excusing them from specific notification obligations that might otherwise apply. This legislative instrument operates within the Commonwealth jurisdiction, impacting entities across Australia that are subject to the Corporations Law. It is important to note that this exemption does not extend to any other provisions of the Corporations Law, and any other requirements or obligations remain in full effect. The scope of this exemption is clearly defined and does not include any alterations to the broader regulatory framework surrounding corporate notifications and disclosures.

Key Provisions

The key operative sections of the legislative instrument F2007B00067 pertain to subsections 669(1), 665D(3), and 665D(4) of the Corporations Law. Subsection 669(1) serves as the basis for the exemption, allowing the Australian Securities and Investments Commission (ASIC) to exempt certain persons from the requirements of subsections 665D(3) and 665D(4). Specifically, the exemption applies to any situation where those subsections would otherwise require an individual to give notice to a company that has only one member or is a wholly-owned subsidiary. This means that for single-member or wholly-owned subsidiary companies, the typical notification requirements under subsections 665D(3) and 665D(4) do not apply. The obligations imposed by this Act primarily focus on ensuring that the notice requirements under subsections 665D(3) and 665D(4) are waived for companies that meet the specified criteria. For instance, if a company is a single-member entity or a wholly-owned subsidiary, the person who would normally be obligated to provide a notice to that company is relieved from doing so. This exemption is designed to simplify compliance for certain types of companies and reduce the administrative burden on individuals who might otherwise be required to provide these notices. In terms of potential breaches and their consequences, the legislative instrument itself does not explicitly outline offences, penalties, or consequences for non-compliance with the exemption provisions. However, it is important to note that the overarching Corporations Law does provide for a range of penalties for non-compliance with its provisions. These can include both civil and criminal penalties, depending on the nature and severity of the breach. For instance, civil penalties can include fines and other monetary penalties, while criminal penalties might include imprisonment, particularly in cases of serious or repeated breaches. The exact penalties would be determined based on the specific circumstances of any non-compliance with the broader Corporations Law, rather than the exemption itself.