ASIC Class Order [CO 01/1087]

Administered by Department of the Treasury

Legislation au F2006B01645 Not in force Legislative Instrument

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Australian Securities and Investments Commission

Corporations Act 2001  –  Subsection 341(1)  –  Variation

 

 

Pursuant to subsection 341(1) of the Corporations Act 2001 the Australian Securities

and Investments Commission hereby varies ASIC Class Order [98/1418] by:

 

1.  replacing the word "Law" where it appears in the heading with the words "Act 2001";

 

2.  replacing the words "Corporations Law ("the Law")" where appearing in the first line with the words "Corporations Act 2001 (the "Act")";

 

3.  replacing the word "Law" with the word "Act" in each of the following places:

 

     (a)   in the first paragraph;

 

     (b)   in paragraph (h)(i);

 

     (c)   where first appearing in paragraph (o);

 

     (d)   in the heading immediately above paragraph (p);

 

     (e)   in each of paragraphs (p)(i), (ii) and (iii); and

 

     (f)   in paragraph (u)(ii);

 

4.   in paragraph (c), replacing the words "borrowing corporation" with the words

      "borrower in relation to debentures";

 

5.   in paragraph (f)(ii), replacing "s.319(4)" with the words "s.319(4) of the

      Corporations Law (as taken to be included in the Act by s.1408(2) of the Act)";

 

6.   in subparagraph (i)(vi), inserting the words "Holding Entity and those" after the

      words "consolidation of the";

 

7.   in paragraph (o), replacing the words "section 302 of the Law" with the words

      "section 302 of the Corporations Law";

 

8.   in paragraphs (p)(i) and (ii), inserting the words "of the Corporations Law" after the word "Act" and inserting the words "of the Corporations Law" after the words "Parts 3.6 and 3.7";

 

9.   in paragraph (p)(iii), inserting the words "or the Corporations Law" after the word "Act" and inserting the words "of the Corporations Law" after the words "Part 4.1";

 

10.   in paragraph (q)(ii) inserting the word ", Singapore" after the words "New

        Zealand";

 

11.   deleting the words "of the terms" in paragraph (s);

 

12.   in the Schedule, deleting the words :

 

     "The following information for the current year with comparative information for the preceding year (comparatives only required in relation to the financial years ending on or after 1 July 1999):",

 

and substituting the following:

 

     "The following information for the Relevant Financial Year with comparative information for the immediately preceding financial year:

 

(i)                 A Statement of Financial Performance setting out the information specified by subparagraphs 4.1(e) to (k) of accounting standard AASB 1018 "Statement of Financial Performance" and, in the case of consolidated financial statements, the information specified in paragraph 34 of accounting standard AASB 1024 "Consolidated Accounts";

 

(ii)                  Opening and closing retained profits/accumulated losses, dividends provided for or paid, and transfers to and from reserves; and

 

(iii)                A Statement of Financial Position complying with paragraphs 4.1, 4.2, 7.1, 7.3 and 7.4 of accounting standard AASB 1040 "Statement of Financial Position", except that if the entities concerned are, or comprise, a "financial institution" as defined by paragraph 10.1 of accounting standard AASB 1032 "Specific Disclosures by Financial Institutions" ("AASB 1032"), the information specified by paragraphs 5.1 and 5.2 of AASB 1032 may be provided instead of that specified by AASB 1040.

 

However, instead of the information specified above, the following information may be given for a Relevant Financial Year ending between 30 June 2001 and 30 September 2001 (both inclusive) with comparative information for the immediately preceding financial year:";

 

13.   renumbering existing paragraphs (i) and (ii) in the Schedule as paragraphs (iv) and

       (v) respectively;

 

14.   replacing the definition of "borrowing corporation" in the "Interpretation" section

        with the following definition:

 

"borrower in relation to debentures" means a body that is or will be liable to repay money under a debenture, but does not include a body that only has debentures on issue that  were issued or allotted:

 

(i) by excluded issues to which paragraph 66(2)(d) of the Corporations Law applied as that Law stood prior to 13 March 2000; or

 

(ii) pursuant to offers which did not need disclosure to investors under Part 6D.2 of the Act because of s.708(1) of the Act."; and

 

15.   in paragraph (b)(i) of the definition of "Exempt Entity" in the "Interpretation"

        section, deleting the words:

 

        "satisfied all of the requirements of s.319(4), or would have satisfied all of the

         requirements of s.319(4) of the Law",

 

         and substituting the words :

 

         "satisfied all of the requirements of s.319(4) of the Corporations Law (as taken to

         be included in the Act by s.1408(2) of the Act), or would have satisfied all of

         those requirements".

 

 

Dated the 4th day of October 2001

 

 

 

 

 

Signed by Brendan Byrne

as a delegate of the Australian Securities and Investments Commission

Overview

The Corporations Act 2001 was enacted to streamline and modernise Australian corporate law, consolidating various statutes into a single comprehensive piece of legislation. The Act was introduced by the Australian Parliament to address gaps and inefficiencies in the previous Corporations Law, aiming to create a more coherent and accessible legal framework for corporations operating in Australia. The policy objective of the Act is to enhance the transparency, efficiency, and competitiveness of the Australian corporate sector while protecting investors and the public interest. In exercising its regulatory authority, the Australian Securities and Investments Commission (ASIC) has the power to make variations to class orders under the Act, as evidenced by the legislative instrument F2006B01645, which amends ASIC Class Order [98/1418] to align with the updated terminology and provisions of the Corporations Act 2001.

Scope and Application

The Australian Securities and Investments Commission Corporations Act 2001 applies to various entities, including corporations, limited partnerships, and other bodies corporate as defined under the Act. The Act regulates the conduct and transactions of these entities, ensuring compliance with corporate governance, disclosure, and accountability requirements. The legislation has a nationwide reach, governing entities within the Commonwealth of Australia and its territories. The Act includes specific exclusions and exemptions, such as for small proprietary companies and certain non-profit organisations, which may be subject to modified or reduced compliance obligations. Additionally, the scope and application of the Act can be extended or restricted through subordinate instruments, such as regulations or class orders, which provide further detail and guidance on specific aspects of the legislation. These instruments allow for adjustments to the Act’s provisions to reflect changing circumstances or regulatory needs, ensuring the Act remains effective and relevant in governing corporate activities across Australia.

Key Provisions

The Australian Securities and Investments Commission (ASIC) has varied the ASIC Class Order [98/1418] under subsection 341(1) of the Corporations Act 2001 (the "Act"). The changes include replacing references to "Law" with "Act" throughout the order (sections 1 to 3), updating specific references to sections and paragraphs within the Act (sections 4 to 7), and modifying definitions and specific terms (sections 8 to 10). Additionally, the order has been updated to reflect changes in accounting standards and requirements, particularly in relation to financial statements and the definition of "borrower in relation to debentures" (sections 11 to 15). Entities governed by this order are required to make the specified textual changes and ensure that their compliance with financial reporting standards is updated to reflect the latest requirements. This includes aligning their financial statements with the latest accounting standards (AASB 1018, AASB 1024, AASB 1040, and AASB 1032), as well as ensuring that their definitions and references within their documents are consistent with the Act. Additionally, the order mandates that certain information be disclosed in financial statements, including comparative information for the immediately preceding financial year and specific details as required by relevant accounting standards. Failure to comply with the varied order may result in regulatory action against the entities involved. Although the specific penalties for non-compliance are not detailed in the legislative instrument, breaches of the Corporations Act 2001 can generally lead to significant civil and criminal penalties. Civil penalties can include fines of up to $210,000 for individuals and up to $1,050,000 for corporations, depending on the severity and circumstances of the breach. Criminal penalties may include imprisonment terms that vary based on the offence and can be significant for both individuals and corporations. These penalties underscore the importance of adhering to the updated requirements and maintaining compliance with the Act and the varied order. In summary, the varied ASIC Class Order [98/1418] updates references and requirements to align with the Corporations Act 2001. It imposes obligations on entities to update their documentation and financial reporting in line with the latest standards and definitions. Non-compliance with these requirements can result in substantial civil and criminal penalties, emphasizing the need for precise adherence to the order.

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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.