EXPLANATORY STATEMENT
Guidelines for the use of the term ‘university’ in company names
(Revocation) Instrument 2013 pursuant to subregulation 2B.6.02(4) of the
Corporations Regulations 2001
Issued by the authority of the Minister for Education
Subject: Guidelines for the use of the word ‘university’ in company names
(Revocation) Instrument 2013
Summary
The Guidelines for the use of the word ‘university’ in company names (Revocation) Instrument 2013 (the Revocation Instrument) (F2007L03885) is made to revoke the Guidelines for the use of the word ‘university’ in company names dated 20 September 2007 and commenced on 28 September 2007 (the Guidelines).
Authority
This legislative instrument is made for the purposes of subregulation 2B.6.02(4) and 5B.3.02(4) of the Corporations Regulations 2001.
Content of Guidelines and Purpose
The purpose of the Revocation Instrument is to revoke the Guidelines.
A company name that includes the word ‘university’ or letters, words or expressions of like import to the word ‘university’ cannot be used by a company under the Corporations Act 2001 unless the Commonwealth Minister responsible for Higher Education from time to time (the Minister) has approved in writing the use of that name by the applicant pursuant to the Corporations Regulations 2001.
Specifically, sections 147 and 601DC of the Corporations Act 2001 and subregulations 2B.6.02 and 5B.3.02 of the Corporations Regulations 2001 operate such that an application for registration, reservation or a change of name which uses or includes the word ‘university’, must be accompanied by the written consent of the Minister.
Accordingly, the Australian Securities and Investment Commission, the agency that registers company names, requires any applications to register a company using the word ‘university’ in its name, to be accompanied by a letter of approval from the Minister or a person appropriately authorised by the Minister.
The Guidelines set out the framework for the use of the word ‘university’ including information on how to apply for approval, the criteria for granting consent to applications and required supporting documentation.
While the Revocation Instrument will cease the operation of the Guidelines as a legislative instrument, any current government policy for the use of the word ‘university’ in company names and relevant guideline material will be publicly available on the website of the Department of Education (www.education.gov.au).
The Revocation Instrument does not affect the validity of any consent previously granted by the Minister, or a person authorised by the Minister in applying the Guidelines under subregulation 2B.6.02 and 5B.3.02(4) of the Corporations Regulations 2001. Any such consent previously granted by the Minister or a person authorised by the Minister pursuant to the Guidelines is taken to continue to have effect unless such consent has otherwise been revoked.
Consultation
The then Department of Industry, Innovation, Science, Research and Tertiary Education consulted with the Department of Treasury on the development of the Revocation Instrument.
The Guidelines, while no longer a legislative instrument, are currently in effect as administrative Guidelines and are available on the Department’s website (as outlined above). No substantive changes have been made to the Guidelines by virtue of the Revocation Instrument.
As the Guidelines have not been substantively altered, and as the Revocation Instrument will not have an effect on business or other stakeholders, consultation was limited to the Department of Treasury which has responsibility for the Australian Securities and Investment Commission, the agency that registers company names.
Overview
The Guidelines for the use of the word ‘university’ in company names (Revocation) Instrument 2013 (F2013L00757) was enacted to revoke the Guidelines for the use of the word ‘university’ in company names dated 20 September 2007, which had been in effect since 28 September 2007. This legislative instrument was issued by the Minister for Education under the authority of subregulations 2B.6.02(4) and 5B.3.02(4) of the Corporations Regulations 2001. The Revocation Instrument addresses the gap in administrative guidelines regarding the use of the term ‘university’ in company names, effectively revoking the previous guidelines while ensuring that any previously granted consents remain valid. The policy objective is to streamline the process by which companies can apply for the use of the term ‘university’ in their names, maintaining a framework for approval without altering existing administrative guidelines.
Scope and Application
The Guidelines for the use of the term ‘university’ in company names (Revocation) Instrument 2013 applies to companies seeking to use the term 'university' in their names under the Corporations Act 2001 and the Corporations Regulations 2001. This revocation instrument annuls the previous Guidelines for the use of the word 'university' in company names, which were previously enforced on 28 September 2007. The instrument mandates that any company name incorporating the term 'university' or similar expressions requires the written consent of the Commonwealth Minister for Higher Education. The instrument does not alter existing approvals granted under the former guidelines and maintains their validity unless explicitly revoked. Geographically, its jurisdiction spans the Commonwealth of Australia, aligning with the Corporations Act 2001's purview. The Revocation Instrument itself does not introduce new exclusions or exemptions beyond those previously outlined in the Guidelines, which remain accessible on the Department of Education's website.
Key Provisions
The Guidelines for the use of the word ‘university’ in company names (Revocation) Instrument 2013 (F2013L00757) serves primarily to revoke the previously established Guidelines for the use of the word ‘university’ in company names (F2007L03885), which was effective as of 28 September 2007. The primary operative sections of the Revocation Instrument are sections 147 and 601DC of the Corporations Act 2001, along with subregulations 2B.6.02 and 5B.3.02 of the Corporations Regulations 2001. These sections and subregulations maintain that any company seeking to use the word ‘university’ in its name must obtain written consent from the Minister for Education, or a person authorised by the Minister, before the Australian Securities and Investment Commission will process the company's application for registration, reservation, or name change.
The Revocation Instrument imposes obligations on entities wishing to use the term ‘university’ in their names, requiring them to seek and obtain written consent from the Minister for Education. This requirement ensures that the term ‘university’ is only used by entities that meet certain standards or criteria, as determined by the Minister. Additionally, the Australian Securities and Investment Commission is obligated to verify the presence of this consent before proceeding with any applications involving the term ‘university’.
Failure to comply with the requirements set forth in the Corporations Act 2001 and the Corporations Regulations 2001 can result in legal consequences. While the Revocation Instrument does not introduce new penalties, existing provisions in the Corporations Act 2001 provide for potential civil or criminal penalties for non-compliance. For example, section 1311 of the Corporations Act 2001 stipulates that a person who contravenes certain provisions of the Act may be liable to penalties, including fines and imprisonment. The specific penalties depend on the nature and severity of the offence, but the potential consequences underscore the importance of adhering to the guidelines and obtaining the necessary approvals.
In summary, the Guidelines for the use of the word ‘university’ in company names (Revocation) Instrument 2013 revokes the previous guidelines, while still enforcing the requirement for written consent from the Minister for Education for any company using the term ‘university’ in its name. This ensures that entities comply with the legal framework governing the use of such terms, while also providing a means for the Minister to maintain oversight and control over the application process.