Corporations Regulations (Amendment)

Overview

The Corporations Regulations (Amendment) 1991 No. 219 were enacted to make several amendments to the Corporations Regulations under the Corporations Act 1989. These amendments were introduced to address a range of issues, including the prescription of indexes for option contracts, certain drafting corrections to avoid the scope of fundraising provisions, and the inclusion of Westpac Banking Corporation as an eligible body for the transfer of marketable securities. The objective of these regulations was to ensure that the regulatory framework remained accurate and consistent with the overall intent of the Corporations Act, while also incorporating technical corrections and minor adjustments. The regulations were approved through consultation and voting by relevant State and Territory Ministers, in line with the Heads of Agreement concerning corporate regulation. The changes were designed to enhance the effectiveness and clarity of corporate regulations without creating gaps in the legislative framework.

Scope and Application

The Corporations Regulations (Amendment) 1991 No. 219, made under the authority of the Corporations Act 1989, targets entities such as corporations and other bodies subject to the Corporations Act and its associated regulations. These amendments apply nationally and are intended to bring alignment and technical corrections to various regulatory requirements. The regulations are particularly focused on specifying indexes for option contracts, rectifying drafting errors, defining additional eligible bodies for securities transfers, providing exemptions for certain provisions, and making technical amendments to forms and schedules. Notably, the regulations provide retrospective operation from 1 January 1991 to ensure continuity and avoid gaps in regulatory coverage. The amendments are approved through consultation with relevant state and territory ministers, reflecting a coordinated approach to corporate regulation across Australia. These regulations are instrumental in refining the application of corporate laws, ensuring they are both precise and effective in governing corporate conduct and transactions.

Key Provisions

The key operative sections of the Corporations Regulations (Amendment) 1991 No. 219 include Regulation 1, which establishes the commencement date of the regulations, and Regulation 3, which makes technical amendments to the forms listed in Schedule 2 of the Corporations Regulations (paragraphs 1 and 3). Regulation 4 amends Schedule 9 to include five corporations in the list of authorised trustee corporations (paragraph 4). The Regulations also amend various specific regulations to prescribe certain indexes, limit avoidance of fundraising provisions, designate Westpac Banking Corporation as an eligible body, and make technical and minor amendments (paragraph 1). These regulations impose obligations on parties governed by them, including ensuring compliance with the prescribed indexes for option contracts, adhering to the corrected forms in Schedule 2, and recognising the inclusion of the five corporations in the list of authorised trustee companies in Schedule 9. Additionally, entities involved in fundraising must avoid any practices that circumvent the provisions outlined in the regulations, and Westpac Banking Corporation must comply with the requirements of being an eligible body for the transfer of marketable securities. There are no specific offences, penalties, or civil/criminal consequences mentioned for breach of these regulations in the explanatory statement. However, it is important to note that failure to comply with regulations made under the Corporations Act 1989 may result in legal consequences, such as fines or other penalties, as prescribed by the Act or relevant legislation. The maximum penalties for breaches of the Corporations Act may vary depending on the nature and severity of the offence, and are not explicitly stated in the explanatory statement for these particular regulations.