National Security (Capital Issues) Regulations (Amendment)

Overview

The Statutory Rules 1951 No. 10, Regulations under the Defence (Transitional Provisions) Act 1946-1950, were enacted to address transitional issues related to defence matters in the post-war period. These regulations were made by the Governor-General in Council, under the authority of the Defence (Transitional Provisions) Act 1946-1950. The primary policy objective of these regulations was to ensure a smooth transition from wartime controls to peacetime conditions, particularly in relation to capital issues and security consents. The regulations amended the National Security (Capital Issues) Regulations to introduce new controls on share calls and modify the duration of consents granted by the Treasurer, aiming to balance the needs of companies with national security considerations during the transitional phase.

Scope and Application

The Statutory Rules of 1951, No. 10, made under the Defence (Transitional Provisions) Act 1946-1950, pertain to amendments of the National Security (Capital Issues) Regulations, which apply to companies and individuals acting on behalf of companies. These regulations specifically govern the making of calls on shares issued by a company, requiring written consent from the Treasurer for any such calls made in relation to authorised capital issued between 13 January 1950 and the commencement of these regulations. Furthermore, the Regulations address the duration of consents granted by the Treasurer under the National Security (Capital Issues) Regulations, stipulating that such consents, unless they specify a period of operation, will lapse six months after the date of their grant or, in certain circumstances, three months after the commencement of these regulations. These amendments extend to the entire Commonwealth of Australia, with no specified exclusions or exemptions, thereby applying uniformly across all states and territories.

Key Provisions

The main provisions of these Regulations under the Defence (Transitional Provisions) Act 1946-1950 pertain to amendments of the National Security (Capital Issues) Regulations, specifically adding a new regulation (7A) and amending an existing regulation (21) (Regulations 1 and 2). Regulation 7A stipulates that any company, or any person acting on behalf of a company, must not call upon shares without the written consent of the Treasurer unless the funds raised are required by 31 December 1951 (Regulation 1). Regulation 2, meanwhile, alters the duration of consent granted by the Treasurer under regulation 21, stipulating that such consent will expire six months after it is granted or the date of commencement of the Defence (Transitional Provisions) Act 1950, whichever is later (Regulation 2). Additionally, a new regulation (21A) is introduced to address consents granted under the previous Regulations before the Defence (Transitional Provisions) Act 1950 came into effect. This regulation ensures that such consents remain valid to the extent they have not been acted upon, with a six-month duration unless a specific period is already specified (Regulation 3). These Regulations impose specific obligations on companies and individuals who wish to make calls on shares issued by the company. Companies must obtain written consent from the Treasurer before making any call on shares issued under a consent granted under regulation 7 on or after 13 January 1950, and before the date of commencement of this regulation. Moreover, the Regulations mandate that if consent is granted by the Treasurer under regulation 21, such consent will automatically expire six months after the date of grant or the date of commencement of the Defence (Transitional Provisions) Act 1950, whichever is later. Furthermore, if a consent granted under the previous Regulations specifies a period, it will cease to be in force at the expiration of that period. If no period is specified, it will cease to be in force at the expiration of the later of either six months after the date of grant or three months after the commencement of this regulation. Failure to comply with these Regulations may result in civil or criminal consequences, although specific offences, penalties, or consequences are not explicitly detailed in the text. However, given the context of national security and capital issues, it is reasonable to infer that breaches could lead to legal action, fines, or other penalties as prescribed by the relevant Acts or Regulations. The Defence (Transitional Provisions) Act 1946-1950, as well as the National Security Act 1939-1946, likely provide the framework for such consequences, although the exact penalties would need to be referenced in those Acts or subsequent Regulations.