EXPLANATORY STATEMENT
STATUTORY RULES 1990 NO. 345
ISSUED BY THE AUTHORITY OF THE TREASURER
BANKS (SHAREHOLDINGS) ACT 1972
BANKS (SHAREHOLDINGS) REGULATIONS (AMENDMENT)
Section 10 of the Banks (Shareholdings) Act 1972 (the Act) generally limits the nominal amount of the voting shares of a bank in which a person (including a corporation) may have an interest to 10 per cent, or 15 per cent with the approval of the Treasurer, of the total nominal amount of the voting shares of the bank. Under subsection 10(4) of the Act the Governor-General may, after application made to the Treasurer by a person, fix a higher percentage for that person by an instrument published in the Gazette. Subsection 10(3) provides that where such percentage is applicable to a person, that person may not hold a greater nominal amount of shares than the percentage so fixed.
As required by the Act, an instrument has been gazetted which fixes a percentage of 75% under subsection 10(4) for Standard Chartered Holdings Limited (Standard Chartered Holdings) in relation to its interests in Standard Chartered Bank Australia Limited (SCBAL).
Under section 9 of the Act the associates (including all officers, partners, subsidiaries and related companies) of Standard Chartered Holdings would also be deemed to have the same interest in SCBAL as Standard Chartered Holdings. In the case of officers of Standard Chartered Holdings, an instrument has been gazetted pursuant to subsection 10(5A) of the Act, to fix a percentage of 75% in relation to interests in SCBAL by those persons who are from time to time relevant officers of Standard Chartered Holdings.
Under the Act, it is not possible to make a ‘class’ instrument for the interests of the associates of Standard Chartered Holdings other than its relevant officers. These other associates represent a large and ever-changing group of persons and corporations. Rather than make an instrument pursuant to subsection 10(4) for every person within the meaning of section 9, it is convenient to prescribe these interests - that is, to have them disregarded for the purposes of section 10 of the Act - by regulation, as provided for by section 17 and paragraph 8(9)(d).
Paragraph 8(9)(d) of the Act provides that a prescribed interest in a share of such a person or class of persons as is prescribed shall be disregarded. The Banks (Shareholdings) Regulations (the Regulations) currently prescribe a class of persons in relation to their interests in the banks listed in the Schedule to the Regulations, where those interests are deemed to be held by virtue of an associate relationship. The effect of the proposed amendments to the Regulations is to disregard for the purposes of the Act interests in SCBAL arising from associate relationships with Standard Chartered Holdings.
The detail of the Regulation is as follows:
The Schedule of the Banks (Shareholdings) Regulations is amended by adding the following corporation in relation to Standard Chartered Bank Australia Limited:
Standard Chartered Holdings Limited, being the company formed or incorporated under that name in the United Kingdom