EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO. 13
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 HongkongBank of Australia Limited.
As required by the Act an instrument has been gazetted which separately but not cumulatively fixes a percentage of 80 under sub-section 10(4) for Hongkong Australia Holdings Pty Limited and The Hongkong and Shanghai Banking Corporation in relation to their interests in HongkongBank of Australia Limited. In addition, an instrument has been gazetted which fixes a percentage of 20 under sub-section 10(4) for Victorian Economic Development Corporation in relation to its interest in HongkongBank of Australia Limited.
Under section 9 of the Act the associates (ie all officers, partners, subsidiaries etc) of the above corporations are deemed to have the same interest in HongkongBank of Australia Limited as the above mentioned companies. Hongkong Australia Holdings Pty Limited and The Hongkong and Shanghai Banking Corporation have made an application to the Treasurer for a ‘class’ instrument fixing a percentage of 80 in respect of their officers, pursuant to sub-section 10(5A) of the Act. Hence, an instrument has been gazetted which declares that for the purposes of the Act the percentage of 80 is also applicable to the persons who are from time to time relevant officers of Hongkong Australia Holdings Pty Ltd and The Hongkong and Shanghai Banking Corporation.
In addition, Victorian Economic Development Corporation made an application to the Treasurer for a ‘class’ instrument fixing a percentage of 20 in respect of its officers pursuant to Sub-section 10(5A) of the Act. Hence, an instrument has been gazetted which declares for the purposes of the Act that a percentage 20 is applicable to the persons who are from time to time relevant officers of Victorian Economic Development Corporation.
Under the Act, however, it is not possible to make such a ‘class’ instrument for the interests of the associates of those corporations 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, pursuant to sub-section 10(4), 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 HongkongBank 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 HongkongBank of Australia Limited.
• Hongkong Australia Holdings Pty Limited
• The Hongkong and Shanghai Banking Corporation
• Victorian Economic Development Corporation