EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO 376
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 15 per cent with the approval of the Treasurer, of the total nominal amount of the voting shares of the bank. Under sub-section 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. Sub-section 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.
The Governor-General of the Commonwealth of Australia on the recommendation of the Treasurer has granted a banking authority to Mitsubishi Bank of Australia Limited.
As required by the Act an instrument has been gazetted fixing a percentage of 77.5 under sub-section 10(4) for The Mitsubishi Bank, Ltd in relation to its interest in Mitsubishi Bank of Australia Limited. The Treasurer has, under sub-section 10(2) of the Act, exempted The City Mutual Life Assurance Society Limited in relation to its interest in Mitsubishi Bank of Australia Limited from compliance with sub-section 10(1) so as to allow it to hold a 12.5 per cent interest in the bank.
Under section 9 of the Act the associates (ie all officers, partners, subsidiaries etc) of the above shareholders would also be deemed to have the same interests in Mitsubishi Bank of Australia Limited as those companies. The companies made an application to the Treasurer for ‘class’ instruments fixing the same percentages as for themselves in respect of their officers, pursuant to sub-sections 10(5A) and 10(2B) of the Act. Hence, an instrument has been gazetted which declares that for the purposes of the Act the percentage of 77.5 is also applicable to the persons who are from time to time relevant officers of The Mitsubishi Bank, Ltd. The Treasurer has exempted under sub-section 10(2B) of the Act those persons who are from time to time relevant officers of The City Mutual Life Assurance Society Limited from compliance with sub-section 10(1) of the Act.
Under the Act, however, it is not possible to make such a ‘class’ instrument or exemption for the interests of the associates of those shareholders other than for the relevant officers. These ‘other associates’, as defined in section 9, would represent an extremely large and ever changing list of persons/corporations and rather than make an instrument or exemption, pursuant to sub-sections 10(4) and 10(2), for every person within the meaning of section 9 it is convenient to prescribe these interests 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 that is an interest of such person, or of the persons included in such 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 banks listed in the schedule to the Regulations deemed to be held by sub-section 9(2) of the Act and thus their interests are disregarded for the purposes of the Act. The effect of the amendments to the Regulations is to do the same in the case of Mitsubishi Bank of Australia Limited.
For each of the sixteen successful applicants announced by the Treasurer on 27 February 1985 which proceeds to the obtaining of a banking authority, a similar addition will be made to the Schedule to the Regulations.
Detail of the regulation is as follows:
The Schedule to the Banks (Shareholdings) Regulations is amended by adding the following corporations to the Schedule in relation to Mitsubishi Bank of Australia Limited.
• The City Mutual Life Assurance Society Limited
• The Mitsubishi Bank, Ltd.