EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO. 166
COMMONWEALTH INSCRIBED STOCK ACT 1911
COMMONWEALTH INSCRIBED STOCK REGULATIONS (AMENDMENT)
Section 58 of the Commonwealth Inscribed Stock Act 1911 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing the fees payable under the Act and all matters and forms required or necessary or convenient to be prescribed for carrying out or for giving effect to the Act or for the conduct of any business at or in connection with any Registry.
Regulation 19 provides the Registrar of Inscribed Stock with a discretion as to whether a signature of a stockholder should be verified against the specimen signature held in the Registry before the document bearing that signature could be accepted.
The amendment is intended to simplify the procedure for identification of stockholders where the signing of documents does not take place before the Registrar and where there is little likelihood of forgery.
Regulation 66 reinstates the Treasurer’s discretionary power to issue replacement securities for those lost, stolen or destroyed bearer bonds. This discretion was removed by an amendment on 1 September 1983 which, in an attempt to lessen the attractiveness of bearer securities, provided only for the replacement of surrendered defaced securities where the identifying numbers are legible. In the light of legislation currently before Parliament providing that the Commonwealth should shortly cease to issue new bearer securities, it is now considered that the amendment made last year is unduly constraining and the discretionary power should be restored, subject to specific terms and conditions.
Overview
The Commonwealth Inscribed Stock Regulations (Amendment) Statutory Rules 1984 No. 166, made under the Commonwealth Inscribed Stock Act 1911, address the need to streamline certain administrative processes related to inscribed stock while also providing mechanisms for the replacement of lost or stolen bearer securities. Enacted by the Parliament, the policy objective of these regulations is to facilitate the efficient management of inscribed stock while ensuring that the security and authenticity of these instruments are maintained. The amendment to Regulation 19 provides a more flexible approach to the verification of stockholder signatures, particularly in scenarios where the signing does not occur in the presence of the Registrar and where the risk of forgery is minimal, thereby simplifying the identification process. Additionally, the reinstatement of the Treasurer’s power to issue replacement bearer securities, as per Regulation 66, acknowledges the practical need for such replacements while ensuring that this power is exercised under specific terms and conditions, in light of the impending cessation of new bearer securities issuance.
Scope and Application
The Commonwealth Inscribed Stock Act 1911 applies to the administration and regulation of inscribed stock within the Commonwealth, encompassing entities and individuals involved in the issuance, transfer, and registration of inscribed stock. The Act allows for the creation of regulations that govern the fees, procedures, and forms necessary for the effective management of inscribed stock and associated transactions. These regulations, including those amending the original provisions, extend to the entire Commonwealth, ensuring a consistent approach across all states and territories. Notably, Regulation 19 grants the Registrar of Inscribed Stock discretion over whether to verify a stockholder’s signature against the specimen signature held in the Registry, a measure intended to streamline procedures where the risk of forgery is minimal. Additionally, Regulation 66 reinstates the Treasurer’s authority to issue replacement securities for lost, stolen, or destroyed bearer bonds, reversing a previous restriction designed to discourage the use of bearer securities. This amendment reflects a pragmatic approach, taking into account the impending cessation of new bearer securities issuance by the Commonwealth.
Key Provisions
The Commonwealth Inscribed Stock Act 1911, as amended by the Commonwealth Inscribed Stock Regulations (Amendment) Statutory Rules 1984 No. 166, includes several key provisions aimed at regulating the administration of inscribed stock. Section 58 of the Act grants the Governor-General the authority to create regulations that prescribe fees, as well as other necessary matters and forms for the effective implementation of the Act and its associated business at or in connection with any Registry. Regulation 19, which falls under this section, provides the Registrar of Inscribed Stock with the discretion to decide whether a stockholder's signature on a document needs to be verified against the specimen signature on file in the Registry before the document can be accepted. This amendment is designed to streamline the process of verifying stockholder identities in instances where the signing does not occur in the presence of the Registrar and where there is minimal risk of forgery.
Under the new regulations, the Act imposes certain obligations on the parties involved. For instance, the Registrar of Inscribed Stock is now empowered to exercise discretion regarding the verification of stockholder signatures. This discretion is intended to simplify the process of identifying stockholders and to reduce unnecessary bureaucratic hurdles. Additionally, Regulation 66 reinstates the Treasurer's discretionary power to issue replacement securities for lost, stolen, or destroyed bearer bonds. This power was previously removed in 1983 to discourage the use of bearer securities, but given the imminent cessation of new bearer securities issuance by the Commonwealth, the need to restore this discretion has become evident. This reinstatement is subject to specific terms and conditions to ensure that the power is exercised appropriately.
The regulations also outline potential consequences for non-compliance. Although the specific penalties are not detailed within the explanatory statement, breaches of the Act or its regulations could lead to civil or criminal penalties. The exact nature and severity of these penalties would depend on the specific breach and the provisions of the Act. For example, if a document is submitted without the necessary verification as required by Regulation 19, it could potentially be rejected, leading to delays or complications in the processing of inscribed stock transactions. Similarly, misuse of the discretion granted under Regulation 66 could result in penalties, as the power to issue replacement securities is tightly regulated and subject to specific conditions. These conditions are presumably designed to prevent abuse and ensure that the replacement of securities is conducted in a manner that is consistent with the objectives of the Act.