EXPLANATORY STATEMENT
Select Legislative Instrument 2007 No. 323
Issued by the authority of the Parliamentary Secretary to the Treasurer
Corporations Act 2001
Corporations Amendment Regulations 2007 (No. 11)
Subsection 1364(1) of the Corporations Act 2001 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed by regulations or necessary or convenient to be prescribed by such regulations for carrying out or giving effect to the Act.
The purpose of the amendments to the Regulations is to provide clarity to the law by updating references to the Stock Exchange of Newcastle Limited in the Corporations Regulations 2001 to reflect its recent change of name.
In 2006 the Stock Exchange of Newcastle Limited changed its name to the National Stock Exchange Limited. On 18 December 2006 the Parliamentary Secretary to the Treasurer issued an Australian market licence variation notice to reflect this change.
These Regulations replaced references to the Stock Exchange of Newcastle Limited with references to the National Stock Exchange Limited.
Under the Corporations Agreement 2002, the Commonwealth must consult with, and receive approval from, the Ministerial Council for Corporations before making amendments to certain provisions of the Principal Regulations. The Council has approved these amendments and agreed to dispense with the period of public exposure given that the amendments are technical in nature.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003. The Regulations commenced on the day after they were registered on the Federal Register of Legislative Instruments.
Overview
The Corporations Amendment Regulations 2007 (No. 11) were enacted to ensure that the Corporations Regulations 2001 accurately reflected the name change of the Stock Exchange of Newcastle Limited to the National Stock Exchange Limited. This change was made to maintain clarity and consistency within the legislative framework, following the official name change that was gazetted on 18 December 2006. The regulations were issued by the authority of the Parliamentary Secretary to the Treasurer, and the amendments were approved by the Ministerial Council for Corporations as required under the Corporations Agreement 2002. Given the technical nature of the amendments, the Council agreed to forgo the period of public exposure. These Regulations commenced on the day after their registration on the Federal Register of Legislative Instruments, and serve to update references in the regulations without altering the substantive law.
Scope and Application
The Corporations Amendment Regulations 2007 (No. 11) primarily serve to update references within the Corporations Regulations 2001 to reflect the name change of the Stock Exchange of Newcastle Limited to the National Stock Exchange Limited. This adjustment ensures consistency and clarity within the regulatory framework of the Corporations Act 2001. The Act applies to various entities, including corporations, financial institutions, and market participants involved in securities trading and transactions within Australia. The amendments are intended to maintain the integrity and effectiveness of the regulatory oversight provided by the Commonwealth over financial markets and institutions. Geographically, these regulations apply nationally across Australia, impacting entities and individuals involved in financial markets and operations regulated by the Corporations Act. The amendments are technical and do not alter the substantive legal obligations or exemptions applicable to entities under the Act. The Regulations came into effect immediately upon their registration on the Federal Register of Legislative Instruments, following the necessary approvals from the Ministerial Council for Corporations.
Key Provisions
The key provisions of the Corporations Amendment Regulations 2007 (No. 11) involve updating references within the Corporations Regulations 2001 to reflect the name change of the Stock Exchange of Newcastle Limited to the National Stock Exchange Limited (subsection 1364(1)). This update is crucial for maintaining the accuracy and clarity of legal documentation and ensuring that all references within the legislative framework are consistent with the current corporate identity. These amendments ensure that any future references or citations within the Corporations Act 2001 and associated regulations will correctly identify the entity as the National Stock Exchange Limited rather than the outdated name.
The obligations and requirements imposed by these Regulations are primarily focused on ensuring that all references to the former name, Stock Exchange of Newcastle Limited, are systematically updated to the new name, National Stock Exchange Limited, throughout the relevant legislative texts. This update is necessary for compliance with the legal requirements set forth in the Corporations Act 2001 and the Corporations Regulations 2001, ensuring that all parties and entities governed by these laws are aware of and adhere to the correct and current corporate designations. The changes are designed to avoid confusion and legal discrepancies that might arise from outdated references.
In terms of offences, penalties, or consequences for non-compliance, the Regulations themselves do not explicitly state any penalties for failing to update references to the National Stock Exchange Limited. However, the broader legal framework of the Corporations Act 2001 does provide for various penalties and consequences for non-compliance with corporate regulations. These can include fines, imprisonment for serious offences, and other civil or criminal penalties as deemed appropriate by the courts. The exact penalties would depend on the nature and severity of the breach, as well as the specific provisions of the Corporations Act 2001 that are affected by the non-compliance.