National Companies and Securities Commission Amendment Act 1981

Overview

The National Companies and Securities Commission Amendment Act 1981 was enacted by the Commonwealth Parliament to amend the National Companies and Securities Commission Act 1979. The 1981 Act was introduced to address specific issues and gaps identified in the administration and functioning of the National Companies and Securities Commission, particularly in relation to the structure, funding, and operational support provided to the Ministerial Council. The policy objective was to refine and enhance the efficiency of the Commission by clarifying roles within divisions, ensuring adequate funding mechanisms, and providing explicit support to the Ministerial Council. This legislative amendment sought to streamline the operations of the Commission and better align its functions with the overarching objectives of corporate governance and securities regulation in Australia.

Scope and Application

The National Companies and Securities Commission Amendment Act 1981 applies to the entities and individuals involved with the operations of the National Companies and Securities Commission, particularly in their capacity to fulfil the functions and duties outlined in the National Companies and Securities Commission Act 1979. The Act amends certain provisions of the Principal Act, including the definition of "Agreement", the composition and operation of Divisions within the Commission, and the application of funds. It also specifies the provision of staff and facilities to the Ministerial Council for the performance of its functions. The Act's jurisdictional reach is national, as it pertains to the federal legislative framework of Australia. Notably, the Act exempts accounts and records maintained by state authorities or officers from the application of audit provisions. The Act does not specify any exclusions or thresholds, and its application is not extended or restricted through subordinate instruments.

Key Provisions

The National Companies and Securities Commission Amendment Act 1981 primarily focuses on amending the National Companies and Securities Commission Act 1979. Section 3 redefines "Agreement" to clarify the agreement made between the Commonwealth and the States on 22 December 1978, as well as any subsequent amendments or related agreements. Additionally, it introduces the term "Ministerial Council secretariat" to denote the staff provided to the Ministerial Council under section 44a. The Act modifies the composition and functioning of Commission divisions by amending section 21, allowing for the creation of divisions without the Chairman, while ensuring a chairman is appointed if the original Chairman is not a member of the division. Section 29 is updated to include the Ministerial Council secretariat's expenses and liabilities within the monies that can be applied as per the Act. Furthermore, section 34 is amended to exclude state authorities and officers from the scope of audits conducted by the Commission. Under the amended Act, the Commission is obligated to provide the Ministerial Council with necessary staff and facilities to perform its functions, as outlined in the newly inserted section 44a. The Act also mandates that if a witness knows the identity of the person who made a communication to them, they must provide this information to the Commission. This requirement is specified in the amendment to section 39, where the obligation to furnish the name and address of such a person is clarified. The Act outlines potential consequences for non-compliance. While specific offences and penalties are not detailed within the Act, it is clear that failure to comply with the requirements, such as providing necessary information or staff to the Ministerial Council, could result in legal repercussions. The precise nature of these repercussions would depend on other applicable laws and the specific context of the breach. The Act also specifies that its provisions are subject to any additional laws passed in accordance with the Agreement, indicating that further penalties might be prescribed under those laws.