EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO 64
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 incorporated in Australia in which a person (including a corporation) may have an interest to 10 per cent, or with the approval of the Treasurer 15 per cent, 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 instrument published in the Gazette. Subsection 10(3) provides that where a percentage is applicable in relation to a person, that person may not have a greater nominal amount of shares than the percentage so fixed.
In order to permit the sale of the interests in Mitsubishi Bank of Australia Limited held by the Capita Financial Group (previously known as City Mutual Life Assurance Society Limited) and by Howard Smith Limited to The Mitsubishi Bank Limited, the Governor-General on the recommendation of the Treasurer has, pursuant to subsection 10(5) of the Act, varied the instrument which had previously been gazetted under subsection 10(4) so that the instrument as varied fixes a percentage of 100 for The Mitsubishi Bank Limited in relation to its interest in Mitsubishi Bank of Australia Limited.
Also, in view of the fact that Capita Financial Group will no longer have an interest in Mitsubishi Bank of Australia, it is not necessary for the Regulations to contain any reference to City Mutual Life Assurance Society Limited in relation to Mitsubishi Bank of Australia. The current amendment has deleted that reference from the schedule to the Regulations.