COMMONWEALTH INSCRIBED STOCK.
No. 5 of 1933.
An Act to amend the Commonwealth Inscribed Stock Act 1911-1932.
[Assented to 30th May, 1933.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1.—(1.) This Act may be cited as the Commonwealth Inscribed Stock Act 1933.
(2.) The Commonwealth Inscribed Stock Act 1911-1932* is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Commonwealth Inscribed Stock Act 1911-1933.
2.—(1.) Section eight of the Principal Act is repealed and the following section inserted in its stead:—
Redemption of stock.
“8. Stock shall be redeemable at par on or after a date to be fixed in the order creating the stock and as specified in the order, or shall be redeemable by instalments of such amounts, and payable on such dates, as are specified in that order, or may be made interminable, reserving to the Treasurer the right, on or after a date fixed by the Governor-General in the order creating the stock, to redeem the stock at par upon such notice given in such time and manner as is prescribed.”.
(2.) Where at any time prior to the commencement of this section the Governor-General has specified, in an order creating any stock, that such stock shall be redeemable on a specified date or by instalments of specified amounts payable on specified dates, such order shall be deemed to be as valid and effectual as if this section had been in force when the order was made.
Transfer by Instrument.
3. Section twenty-four of the Principal Act is amended by omitting the word “deed” and inserting in its stead the word “instrument”.
Execution of transfer.
4. Section twenty-five of the Principal Act is amended by omitting the word “deed” and inserting in its stead the word “instrument”.
Registration of transfer.
5. Section twenty six of the Principal Act is amended by omitting the word “deed” and inserting in its stead the word “instrument”.
Commencement.
6. The amendments effected by sections three, four and five of this Act shall be deemed to have commenced on the date of commencement of the Principal Act.
Overview
The Commonwealth Inscribed Stock Act 1933 was enacted by the Commonwealth Parliament to amend the Commonwealth Inscribed Stock Act 1911-1932. This Act addresses the need to update the framework governing the issuance and redemption of Commonwealth inscribed stock, ensuring it aligns with current financial practices and regulatory standards. The policy objective of the Act is to provide a more flexible and precise mechanism for the redemption of stock, reserving to the Treasurer the right to redeem stock at par upon notice, and to modernise terminology within the existing legislative framework to reflect contemporary usage. The Act was assented to on 30th May, 1933, and the amended Principal Act is subsequently referred to as the Commonwealth Inscribed Stock Act 1911-1933.
Scope and Application
The Commonwealth Inscribed Stock Act 1933 applies to all inscribed stock created under the Commonwealth Inscribed Stock Act 1911-1932, which is referred to as the Principal Act, and amended by this Act. The Act pertains to the terms of redemption of stock, the instruments used for transfer of stock, and the execution and registration of such transfers. The Act applies to any orders creating stock that were specified prior to the commencement of this Act. The Act is a Commonwealth Act, thus its jurisdiction extends nationally across Australia. The Act makes specific amendments to the Principal Act, such as replacing the term "deed" with "instrument" in the context of stock transfers. The amendments concerning transfer instruments are deemed to have commenced on the date of the Principal Act's commencement. There are no stated exclusions, exemptions, or thresholds within the text of the Act itself, and it does not explicitly mention the extension or restriction of its application through subordinate instruments.
Key Provisions
The Commonwealth Inscribed Stock Act 1933 introduces significant amendments to the Commonwealth Inscribed Stock Act 1911-1932, which is referred to as the Principal Act in this new legislation. The main operative sections of the 1933 Act focus on the redemption of stock and the transfer of stock through instruments. Section 8 of the Principal Act is repealed and replaced with a new section detailing the redemption of stock, which can be at par on a specified date, in instalments, or made interminable with the Treasurer having the right to redeem at par on or after a specified date (section 8(1)). This change ensures that any prior orders specifying redemption dates or instalments remain valid and effective (section 8(2)).
The Act imposes obligations on parties dealing with Commonwealth inscribed stock. Firstly, it mandates that transfers of stock are to be executed through instruments rather than deeds, as specified in sections 3, 4, and 5. These sections amend sections 24, 25, and 26 of the Principal Act, respectively, by replacing the term "deed" with "instrument" (sections 3, 4, and 5). This change ensures that the transfer process is formalised through the use of instruments, which must be executed, and then registered to be legally effective.
In terms of enforcement and compliance, the Act does not explicitly detail specific offences, penalties, or civil/criminal consequences for breaches of its provisions. However, given the nature of financial legislation, non-compliance with the requirements for the execution and registration of transfers could potentially lead to legal challenges or disputes. Such issues would likely be resolved through civil litigation, with the court potentially awarding damages or specific performance, depending on the nature of the breach and the resultant harm. The absence of explicit penalties in the Act means that the consequences of non-compliance would be determined in the context of the specific legal proceedings arising from the breach.