ASIC Corporations (Capital Reductions and Reconstructions—Technical Disclosure Relief) Instrument 2017/242

Administered by Department of the Treasury

Legislation au F2017L00280 In force Legislative Instrument

Legislation content

ASIC Corporations (Capital Reductions and Reconstructions—Technical Disclosure Relief) Instrument 2017/242

made under subsection 1020F(1) of the Corporations Act 2001
 

Compilation No. 1 

Compilation date: 24/09/2025

Includes amendments: F2025L01152

About this compilation

This compilation

This is a compilation of the ASIC Corporations (Capital Reductions and Reconstructions—Technical Disclosure Relief) Instrument 2017/242 that shows the text of the law as amended and in force on 24/09/2025 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments are accessible on the Register (www.legislation.gov.au).

Application, saving and transitional provisions

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

Part 1—Preliminary

1 Name of legislative instrument

3 Authority

4 Definitions

Part 2—Declaration

5 Technical disclosure relief for capital reductions and reconstructions

Endnotes

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Part 1—Preliminary

1 Name of legislative instrument

This is the ASIC Corporations (Capital Reductions and Reconstructions—Technical Disclosure Relief) Instrument 2017/242.

3 Authority

This instrument is made under subsection 1020F(1) of the Corporations Act 2001.

4 Definitions

In this instrument:

Act means the Corporations Act 2001.

capital reduction offer means a Part 2J.1 capital reduction offer or a foreign capital reduction offer.

eligible reconstruction has the same meaning as in the ASIC Corporations (Application Form Requirements) Instrument 2017/241.

foreign capital reduction offer has the same meaning as in the ASIC Corporations (Application Form Requirements) Instrument 2017/241.

offer has a meaning affected by sections 1010C and 1011C of the Act.

Part 2J.1 capital reduction offer has the same meaning as in the ASIC Corporations (Application Form Requirements) Instrument 2017/241.

Part 2—Declaration

5 Technical disclosure relief for capital reductions and reconstructions

Part 7.9 of the Act applies in relation to a financial product that is being offered under an eligible reconstruction or is the subject of a capital reduction offer as if Division 2 of that Part were modified or varied by:

(a)     omitting subsection 1013B(1); and

(b)     after 1015C(5), inserting:

“(6)   For the purpose of subparagraph (1)(a)(ii) and for the avoidance of doubt, where a Statement is in or accompanies a notice of meeting of members of a company, foreign company or registered scheme, each member of the company or scheme is taken to have nominated the address shown in:

(a)     in the case of a company or registered scheme—the register of members maintained by the company or responsible entity of the scheme under Chapter 2C; or

(b)     in the case of a foreign company—the register of members (however described) kept by the company under the law of its place of origin.”.

Note:  ASIC Corporations (Compromises or Arrangements) Instrument 2025/613 provides relief from the obligation to provide a Product Disclosure Statement for offers of financial products made under certain reconstructions not covered by this section.

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.

Endnote 2—Abbreviation key

ad = added or inserted

orig = original

am = amended

p = page(s)

amdt = amendment

para = paragraph(s)/subparagraph(s)

C[x] = Compilation No. x

/sub‑subparagraph(s)

ch = Chapter(s)

pres = present

cl = clause(s)

prev = previous

cont. = continued

(prev…) = previously

def = definition(s)

pt = Part(s)

Dict = Dictionary

r = regulation(s)/Court rule(s)

disallowed = disallowed by Parliament

reloc = relocated

div = Division(s)

renum = renumbered

exp = expires/expired or ceases/ceased to have

rep = repealed

effect

rs = repealed and substituted

gaz = gazette

s = section(s)/subsection(s)

LA = Legislation Act 2003

/rule(s)/subrule(s)/order(s)/suborder(s)

LIA = Legislative Instruments Act 2003

sch = Schedule(s)

(md not incorp) = misdescribed amendment

SLI = Select Legislative Instrument

cannot be given effect

SR = Statutory Rules

mod = modified/modification

sub ch = Sub‑Chapter(s)

No. = Number(s)

sub div = Subdivision(s)

Ord = Ordinance

sub pt = Subpart(s)

 

underlining = whole or part not commenced or to be commenced

 

Endnote 3—Legislation history

Name

Registration

Commencement

Application, saving and transitional provisions

ASIC Corporations (Capital Reductions and Reconstructions—Technical Disclosure Relief) Instrument 2017/242 [F2017L00280]

22/03/2017

23/03/2017

 

ASIC Corporations (Amendment and Repeal) Instrument 2025/617 [F2025L01152]

23/09/2025

24/09/2025

 

 

Endnote 4—Amendment history

Provision affected

How affected

s 2

rep LA s 48D

s 5 (note)

am 2025/617

 

 

 

Overview

The ASIC Corporations (Capital Reductions and Reconstructions—Technical Disclosure Relief) Instrument 2017/242 was enacted to provide relief from certain technical disclosure requirements for capital reductions and reconstructions under the Corporations Act 2001. This legislative instrument was made under the authority of subsection 1020F(1) of the Corporations Act 2001. The primary objective of this instrument is to streamline the disclosure process for financial products offered under eligible reconstructions or capital reduction offers, thereby reducing administrative burdens on companies while ensuring that investors receive the necessary information. The instrument provides relief by modifying the application of Part 7.9 of the Corporations Act 2001, specifically by omitting subsection 1013B(1) and inserting a new provision after 1015C(5). This amendment clarifies the deemed nomination of addresses for members under various company types, facilitating compliance with disclosure obligations. The instrument was developed and enacted by the Australian Securities and Investments Commission (ASIC) and is part of a broader effort to modernise and simplify the regulatory framework governing corporate actions. By providing technical disclosure relief, the instrument aims to encourage corporate restructuring and capital management activities, which are vital for the growth and efficiency of the corporate sector. The relief is particularly aimed at ensuring that the necessary information reaches the intended recipients without unnecessary complexity, thus balancing regulatory requirements with practical business needs.

Scope and Application

The ASIC Corporations (Capital Reductions and Reconstructions—Technical Disclosure Relief) Instrument 2017/242 applies to entities involved in capital reductions or reconstructions of financial products, particularly those meeting the criteria for an "eligible reconstruction" as defined in the ASIC Corporations (Application Form Requirements) Instrument 2017/241. This instrument modifies certain technical disclosure requirements under Part 7.9 of the Corporations Act 2001, specifically for financial products that are the subject of a capital reduction offer or are part of an eligible reconstruction. It operates within the Commonwealth jurisdiction, impacting companies, foreign companies, and registered schemes operating in Australia. This legislation relieves these entities from specific obligations regarding technical disclosures, streamlining certain procedural requirements. However, it does not exempt entities from other regulatory obligations under the Corporations Act 2001 or related legislation. The modifications and application of this instrument can be further detailed through subordinate instruments, which may extend or restrict its scope as needed.

Key Provisions

The ASIC Corporations (Capital Reductions and Reconstructions—Technical Disclosure Relief) Instrument 2017/242, made under subsection 1020F(1) of the Corporations Act 2001, primarily focuses on providing relief for technical disclosures related to capital reductions and reconstructions. Specifically, section 5 of Part 2 of the Instrument modifies the application of Part 7.9 of the Act for financial products offered under eligible reconstructions or subject to capital reduction offers. The modification involves omitting subsection 1013B(1) and inserting a new subparagraph (6) after section 1015C(5), clarifying that members of a company or scheme are deemed to have nominated their addresses as per their respective registers of members (section 5(a) and (b)). The Instrument imposes certain obligations on companies and other entities involved in capital reductions and reconstructions. Companies must ensure that the required technical disclosures are made in accordance with the modified provisions of the Corporations Act 2001. This includes ensuring that the financial product is properly disclosed and that member addresses are accurately recorded in the relevant register. Additionally, companies must ensure compliance with any other applicable disclosure requirements under the Act. Breach of the provisions outlined in this Instrument may result in legal consequences. While the Instrument itself does not explicitly detail penalties for non-compliance, it operates within the broader framework of the Corporations Act 2001, where significant penalties may apply. Under the Act, breaches of disclosure requirements can result in substantial fines for both the company and its officers, as well as potential disqualification from managing corporations. The exact penalties depend on the nature and severity of the breach, with the potential for significant financial and reputational harm.

Legal classification tags

Area of Law
Corporate Law & Governance
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Regulatory Standards
Licensing & Registration
Enforcement Powers

Interactions

Authorises

All Versions

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.