Corporations Regulations (Amendment)

Overview

The Corporations Regulations (Amendment) 1998 No. 128 was enacted to address a gap in the existing regulatory framework by amending the Corporations Regulations under the Corporations Act 1989. This amendment was necessary to include Inteq Custodians Ltd in the list of authorised trustee corporations. The regulations were issued by the authority of the Treasurer, as stipulated in Section 22 of the Corporations Act, which empowers the Governor-General to make regulations not inconsistent with the Act or the Corporations Law, and necessary or convenient for carrying out or giving effect to the Corporations Law. The primary objective of this amendment was to ensure that Inteq Custodians Ltd, as an authorised trustee corporation, could perform the required functions as outlined under the Corporations Regulations. This change was achieved through the insertion of "Inteq Custodians Limited" into Schedule 9 of the Corporations Regulations, as specified in the regulations.

Scope and Application

The Corporations Regulations (Amendment) 1998 No. 128 applies to entities that are regulated under the Corporations Act 1989, specifically those entities that are to be recognised as authorised trustee corporations. This amendment extends to Inteq Custodians Ltd, which is to be added to the list of entities recognised as authorised trustee corporations as per Schedule 9 of the Corporations Regulations. The amendment, made under the authority granted by Section 22 of the Corporations Act 1989, ensures that Inteq Custodians Ltd is now included in the regulatory framework that governs authorised trustee corporations. This legislative action has a national jurisdictional reach, as it applies across the Commonwealth of Australia and affects the conduct of Inteq Custodians Ltd in accordance with the regulations of the Corporations Act 1989. The regulations do not specify any exclusions or thresholds beyond the inclusion of Inteq Custodians Ltd in the list of authorised trustee corporations, and any further application or restrictions are to be determined through subordinate instruments as necessary for the implementation of the Corporations Law.

Key Provisions

The Corporations Regulations (Amendment) 1998 No. 128 introduces specific changes to the Corporations Regulations by amending Schedule 9, which lists authorised trustee corporations. Regulation 3, particularly subregulation 3.1, is the operative provision, inserting "Inteq Custodians Limited" into Schedule 9 (paragraph 1). This inclusion means that Inteq Custodians Limited is now recognised as an authorised trustee corporation under the Corporations Regulations. Such recognition implies that Inteq Custodians Limited is permitted to provide trustee services for companies, which typically includes managing and safeguarding company assets and documents. The primary obligation imposed by these regulations is the formal recognition and listing of Inteq Custodians Limited as an authorised trustee corporation. This listing requires that Inteq Custodians Limited meets any criteria or standards set out elsewhere in the Corporations Act and associated regulations for being an authorised trustee. The effect is that Inteq Custodians Limited can now legally offer trustee services to companies, subject to compliance with all relevant statutory and regulatory requirements. This recognition enhances the company's capacity to act as a trustee, which is crucial for ensuring that it can properly manage and protect corporate assets and documents in accordance with legal standards. In terms of potential breaches and consequences, while the specific regulations do not detail offences or penalties, any failure by Inteq Custodians Limited to comply with the requirements of being an authorised trustee corporation could result in legal action under the Corporations Act. Non-compliance could lead to penalties, including fines and, in severe cases, revocation of its authorisation as a trustee corporation. The exact penalties would depend on the nature and severity of the breach, but they can be substantial, reflecting the importance of trustee duties in the corporate environment. Additionally, ongoing non-compliance or serious breaches could lead to criminal charges, further highlighting the serious nature of trustee responsibilities.