Companies (Fees) Regulations (Amendment)

Overview

The Companies (Fees) Regulations (Amendment) 1989 were enacted to update the fees associated with the lodgment and registration of documents with the National Companies and Securities Commission, as well as for various other activities prescribed under the Companies (Fees) Act 1981. This legislative amendment was introduced to address the need for regular adjustments to the fees in line with inflation, ensuring they remain relevant and reflective of the economic conditions. The regulation was made under the authority of the Attorney-General and follows a resolution of the Ministerial Council for Companies and Securities, which was established under an Agreement between the Commonwealth and the States to facilitate a uniform system of company law and securities regulation across Australia. The policy objective of this amendment was to update the fees based on the increase in the Consumer Price Index between the December quarter of 1987 and the December quarter of 1988, thereby maintaining the fairness and effectiveness of the regulatory fees within the framework of the co-operative companies and securities scheme.

Scope and Application

The Companies (Fees) Regulations (Amendment) Statutory Rules 1989 No. 126, issued under the authority of the Attorney-General, pertain to the amendment of fees prescribed for certain activities under the Companies (Fees) Act 1981. These regulations apply to the Commonwealth of Australia and are enacted in accordance with the framework established by the Ministerial Council for Companies and Securities, reflecting a cooperative scheme between the Commonwealth and the states and territories. The regulations specifically amend the fees for lodgment, registration, inspection, and other services provided by the National Companies and Securities Commission and the Ministerial Council. The fees were adjusted by 7.7%, reflecting the Consumer Price Index increase from the December quarter of 1987 to that of 1988, and rounded according to specific thresholds. Notably, fees for the submission of a proposed prospectus or a proposed statement under section 170 of the Companies Act 1981 were not increased due to the statutory upper limit of $1,000. The amendments are effective from 1 July 1989, and the new fees are detailed in the Schedule attached to the regulations.

Key Provisions

The Companies (Fees) Regulations (Amendment) Statutory Rules 1989 No. 126, made under subsection 5(1) of the Companies (Fees) Act 1981, prescribe fees for specific services provided by the National Companies and Securities Commission and the Ministerial Council, as outlined in subsection 4(1) of the Act. These services include the lodgment of documents, registration, inspection, production of documents, issuance of documents or copies, granting of licences or approvals, making inquiries or applications, and submission of documents for examination (paragraph 4(1) of the Act). Regulation 2 introduces a new Schedule of fees, which replaces the Schedule of fees that came into operation on 1 July 1988 (paragraph 8 of the Explanatory Statement). The new fees were calculated by increasing the old fees by 7.7%, reflecting the increase in the Consumer Price Index between December 1987 and December 1988, and rounding the amounts as follows: to the nearest dollar for fees below $50, to the nearest $5 for fees between $50 and $200, and to the nearest $10 for fees over $200 (paragraph 10 of the Explanatory Statement). Certain fees, specifically those of $1,000 for the submission of a proposed prospectus or a proposed statement under section 170 of the Companies Act 1981, have not been increased due to the statutory cap of $1,000 on the fees that may be prescribed (paragraph 11 of the Explanatory Statement). The Regulations impose obligations on entities and individuals to pay the specified fees for services rendered by the National Companies and Securities Commission and the Ministerial Council, as detailed in the amended Schedule. These fees must be paid for activities such as lodging documents, registering documents, inspecting or searching registers or documents, producing documents, issuing documents or copies, granting licences, consents or approvals, making inquiries or applications, and submitting documents for examination (paragraph 4(1) of the Act). Entities and individuals are required to comply with the new fee structure set out in the amended Schedule, which came into operation on 1 July 1989 (Regulation 1 of the Regulations). They must ensure that the appropriate fees are paid for each service provided by the Commission or the Council as per the new fee levels (Regulation 2 of the Regulations). Breach of the Companies (Fees) Regulations (Amendment) Statutory Rules 1989 No. 126 may result in civil or criminal consequences, although the specific penalties are not detailed within the Explanatory Statement. The Act does not provide for specific penalties for non-payment of fees prescribed by regulations, leaving such consequences to be determined by relevant laws or court decisions. However, failure to comply with regulatory requirements can lead to administrative actions, such as notices, fines, or legal proceedings, depending on the jurisdiction and specific circumstances of the breach. The precise penalties for non-compliance are not specified in the Explanatory Statement but would typically be governed by other applicable laws or regulations.