ASIC Class Order [CO 03/67]

Overview

The Australian Securities and Investments CommissionCorporations Act 2001 was enacted in 2001 to consolidate and reform Australian corporate law, aiming to create a more cohesive and accessible legal framework. The Act was introduced to address the fragmented and outdated nature of previous corporate legislation by streamlining and modernising it. This was achieved by the Australian Parliament, with the policy objective being to enhance transparency, accountability, and investor protection in the corporate sector. The legislative instrument F2006B01086, dated 7 February 2003, is an example of how the Act continues to evolve to meet current needs, as demonstrated by the amendment to Class Order [CO 98/98]. This amendment was made to reflect the transition from the previous Corporations Law to the Corporations Act 2001, ensuring consistency and clarity in legal references and interpretations.

Scope and Application

The legislative instrument F2006B01086, issued under subsection 341(1) of the Corporations Act 2001, pertains to the amendment of Class Order [CO 98/98]. This Act applies to entities within the framework of the Corporations Act 2001, specifically targeting those previously defined as "recognised companies" under the former Corporations Law. The amendment ensures consistency in terminology following the transition from the Corporations Law to the Corporations Act 2001, thereby affecting the legal definitions and references within the Class Order. The changes are intended to harmonise the language used in the legislative text and maintain the integrity of legal references post-enactment of the new Act. The variations do not extend to altering the substantive legal principles or the scope of the Class Order itself but are purely corrective to reflect the legislative nomenclature shift. The geographic and jurisdictional reach of this legislative instrument is within the Commonwealth of Australia, applying uniformly across all states and territories. There are no stated exclusions or exemptions under this particular variation, and it does not introduce any new thresholds. The instrument operates within the existing framework of the Corporations Act 2001 and does not extend or restrict application through subordinate instruments beyond the specified textual amendments. The changes are designed to ensure the legal documents accurately reflect the current legislative environment without altering the operational scope of the Class Order.

Key Provisions

The legislative instrument F2006B01086, which varies Class Order [CO 98/98] under the Corporations Act 2001, brings about several modifications to the original order to reflect the transition from the Corporations Law to the Corporations Act 2001. Specifically, under subsection 341(1) of the Corporations Act 2001, the Australian Securities and Investments Commission (ASIC) modifies Class Order [CO 98/98] by making textual changes to update references from "Corporations Law" to "Corporations Act 2001". This includes omitting the term "Law" from the heading and replacing it with "Act 2001", changing references within the first paragraph from "Corporations Law" to "Corporations Act 2001", and substituting the word "Law" with "Act" in the appropriate places. Additionally, the definition of "entity" under the "Interpretation" section is updated by removing the phrase "a recognised company". The Act imposes several obligations on entities governed by Class Order [CO 98/98], primarily requiring them to ensure their documentation and references align with the current legislative framework. This involves updating any internal documents, communications, and legal references to reflect the transition from the Corporations Law to the Corporations Act 2001. Entities must also ensure that any existing agreements, contracts, or filings that reference the old law are amended to comply with the updated terminology and provisions of the Corporations Act 2001. Failure to make these updates could result in non-compliance with the regulatory requirements and potentially lead to legal challenges or penalties. The legislative instrument does not explicitly outline specific offences, penalties, or consequences for non-compliance with the updated Class Order [CO 98/98]. However, non-compliance with the Corporations Act 2001 can generally lead to various civil or criminal penalties depending on the nature and severity of the breach. For instance, entities that fail to adhere to the requirements of the Act may face enforcement actions by ASIC, including fines, legal proceedings, or other regulatory sanctions. In more severe cases, individuals responsible for the non-compliance could face personal penalties, such as fines or imprisonment, depending on the specific provisions of the Act violated and the discretion of the court.