Overview

The Australian Securities and Investments Commission Corporations Act 2001 is an amendment to the original Corporations Act, enacted in 2001 to streamline and modernise corporate law in Australia. This Act was introduced to address the need for a more comprehensive and integrated legal framework that could effectively regulate corporate activities, protect investors, and enhance market confidence. The Act was enacted by the Australian Parliament and aims to provide a robust and adaptable legislative environment that can respond to evolving business practices and market conditions. This legislative instrument, F2006B01428, represents a variation made under subsection 341(1) of the Corporations Act 2001, specifically amending Class Order [CO 98/105] to align with the updated terminology and references within the Act, ensuring consistency and clarity in the application of corporate law. The changes include updating references from "Corporations Law" to "Corporations Act 2001" and aligning specific accounting standards with the new Act.

Scope and Application

The Australian Securities and Investments Commission (ASIC) exercises its powers under subsection 341(1) of the Corporations Act 2001 to modify Class Order [CO 98/105], ensuring its alignment with the updated legislative framework. This alteration is specific to the references within the Class Order, replacing outdated terminology such as "Corporations Law" and "Law" with "Corporations Act 2001" and "Act" respectively. This revision applies to all entities governed by the Class Order, which includes companies, limited partnerships, and other incorporated entities that must comply with the accounting standards specified in the Act. The changes are designed to enhance clarity and maintain consistency with the current legislative language, thereby ensuring that entities subject to these accounting standards continue to adhere to the statutory requirements. The modifications have a national reach, impacting all jurisdictions within Australia where the Corporations Act 2001 applies. There are no exclusions, exemptions, or thresholds specified in this particular variation, which streamlines the process for entities to remain compliant with the updated legislative references.

Key Provisions

The main operative sections of the legislative instrument, under subsection 341(1) of the Corporations Act 2001, pertain to the amendment of Class Order [CO 98/105]. Specifically, the instrument makes several textual changes to references within the order. The heading of the order is modified by omitting "Law" and substituting it with "Act 2001" (item 1). Additionally, the introductory words of the first paragraph are altered by removing "Corporations Law ("the Law")" and replacing it with "Corporations Act 2001 ("the Act")" (item 2). The same introductory words are further amended by removing the word "Law" twice and substituting it with "Act" (item 3). Lastly, the first paragraph of the Schedule undergoes a significant change by removing all text preceding "insofar" and replacing it with specific references to accounting standards (item 4). The obligations and requirements imposed by this legislative instrument on the entities governed by the amended Class Order are primarily centred on the alignment of references to the Corporations Act 2001 and the specified accounting standards. Entities subject to Class Order [CO 98/105] must ensure that their documentation and references accurately reflect the changes stipulated in the legislative instrument. This includes updating any references to "Corporations Law" to "Corporations Act 2001" and incorporating the new references to specific accounting standards within their financial reporting and disclosures. This update is crucial for maintaining compliance with the legislative requirements and ensuring that financial reporting adheres to the correct legal and accounting frameworks. In terms of offences, penalties, or consequences for breach, the legislative instrument itself does not explicitly outline these. However, under the Corporations Act 2001, non-compliance with Class Orders can result in civil penalties, including fines. The maximum penalties for breaches of Class Orders can be substantial, depending on the nature and severity of the non-compliance. Specifically, section 1317E of the Corporations Act 2001 provides for civil penalty provisions, where a person can be fined up to $210,000 for each contravention if the contravention is of a kind that is not subject to criminal prosecution. Furthermore, in cases of serious or repeated non-compliance, the Australian Securities and Investments Commission (ASIC) may take enforcement actions, which can include seeking injunctions, rectifying the breach, or pursuing further legal remedies. The precise penalties and consequences would be determined based on the specific circumstances of the breach and the discretion of the courts.