EXPLANATORY STATEMENT
Statutory Rules 1989 No. 214
Issued by the Authority of the Attorney-General
National Companies and Securities Commission Regulations
(Amendment)
Subsection 53(1) of the National Companies and Securities Commission Act 1979 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters that are necessary or convenient to be prescribed for carrying out or giving effect to the Act. Subsection 53(4) of the Act provides that the power of the Governor-General to make regulations shall be exercised only in accordance with advice that is consistent with resolutions of the Ministerial Council for Companies and Securities (the Council).
2. The Council was established under an Agreement between the Commonwealth and the States, executed on 22 December 1978 (the Agreement), that provides the framework for a co-operative Commonwealth-State scheme for a uniform system of law and administration in relation to company law and the regulations of the securities and futures industries in the six States, the Australian Capital Territory and the Northern Territory of Australia.
3. Under subclause 45(1) of the Agreement, the Council may consider a proposal for the amendment of regulations made under the Commonwealth Acts enacted for the purpose of the cooperative companies and securities scheme. Should the Council approve any draft amending regulation which gives effect to such a proposal, the Commonwealth is then required, under subclause 45(2) of the Agreement, to submit the draft regulations to the Federal Executive Council for making by the Governor-General.
4. The accompanying Regulations are in accordance with a resolution made by the Council.
5. The purpose of the Regulations is to increase the monetary limit on the size of a contract that may be entered into by the National Companies and Securities Commission (the Commission) without the express approval of the Council from $50,000 to $250,000.
6. Details of the accompanying Regulations are as follows.
Regulation 1: Commencement
This regulation prescribes 1 September 1989 as the date on which the proposed amendments to the Regulations will come into operation.
Regulation 2: Limitation on contracts
This regulation will, for the purposes of paragraph 33(a) of the Act, increase from $50,000 to $250,000 the monetary limit on the size of a contract that may be entered into by the Commission without the express approval of the Council.