STATUTORY RULES.
1945. No. 187.
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REGULATION UNDER THE NATIONAL SECURITY ACT 1939-1943.*
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulation under the National Security Act 1939-1943.
Dated this sixth day of December, 1945.
HENRY
Governor-General.
By His Royal Highness’s Command,
J. B. CHIFLEY
for and on behalf of the Minister of State for Defence.
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Amendment of the National Security (Capital Issues) Regulations.†
Regulation 7a of the National Security (Capital Issues) Regulations is repealed and the following regulation inserted in its stead:—
Syndicates, &c.
“7a.—(1.) The object of this regulation is to supplement the provisions of this Part relating to companies by providing for the control of the raising of money by persons other than companies from the public or any section of the public for the purpose of business, commercial or industrial enterprises, to an extent which would be prohibited, in the case of companies, except with the consent of the Treasurer, and this regulation shall be administered accordingly.
“(2.) Except with the consent of the Treasurer, a person (other than a body corporate) or persons carrying on, or proposing to early on, either alone or together with other persons, any business shall not, whether directly or through the interposition of trustees or agents or otherwise indirectly, accept from any person any valuable consideration
* Notified in the Commonwealth Gazette on 6th December, 1945,
† Statutory Rules 1940, No. 218, as amended by Statutory Rules 1940, Nos. 242 and 291; 1941, Nos. 150 and 301; 1942, Nos. 23, 126. 196, 366 and 424: and 1945, Nos. 26, 107 and 133.
7103.—Price 3D.
in consideration of any persons becoming entitled, either immediately or upon any condition or contingency, to, or to an option to acquire, an interest or increased interest in the business or in the profits or assets of the business where—
(a) the total number of persons from whom any valuable consideration has been or is so accepted, together with any other persons who have as interest in the business or in the profits or assets thereof, exceeds nineteen in number; and
(b) the total amount or value of the consideration so accepted during the preceding year (including the amount then accepted) would exceed Ten thousand pounds.”.
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By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra.
Overview
The Statutory Rules 1945 No. 187, made under the National Security Act 1939-1943, was introduced to address the issue of controlling the raising of money by individuals or groups for business, commercial, or industrial enterprises without the necessary oversight that companies must undergo. This regulation was enacted by the Governor-General in Council, with the advice of the Federal Executive Council, and signed by the Minister of State for Defence. The primary policy objective of this regulation was to ensure that the raising of capital by entities other than companies does not exceed a certain threshold without the consent of the Treasurer, thus maintaining a level of control and oversight over financial activities that could potentially impact national security or economic stability. This legislative instrument sought to prevent the formation of syndicates or groups that could amass significant financial resources without proper scrutiny, thereby safeguarding against potential risks associated with such activities.
Scope and Application
This regulation, made under the National Security Act 1939-1943, amends the National Security (Capital Issues) Regulations to address the control of raising money by individuals or unincorporated entities for business, commercial, or industrial enterprises. The regulation applies to any person or group of individuals or unincorporated entities, except those that are bodies corporate, and it aims to prevent them from accepting valuable consideration from more than nineteen individuals to engage in business activities without the consent of the Treasurer. This regulation applies nationally across Australia, as it is a Commonwealth regulation. Notably, it excludes companies from its purview, focusing instead on unincorporated entities and individuals. The regulation can be further extended or modified through subordinate instruments, allowing the government to adapt to changing economic conditions or security concerns.
Key Provisions
The Statutory Rules of 1945, No. 187, made under the National Security Act 1939-1943, introduce an amendment to the National Security (Capital Issues) Regulations, specifically focusing on Regulation 7a. Regulation 7a (subsection 1) aims to control the raising of money by individuals or groups from the public for business, commercial, or industrial enterprises, to an extent that would be restricted for companies unless approved by the Treasurer. Regulation 7a (subsection 2) prohibits individuals or groups from accepting valuable consideration from the public to acquire an interest in a business, unless the Treasurer consents. This prohibition applies when the total number of people involved exceeds nineteen, or the total value of the consideration accepted exceeds ten thousand pounds in a year.
Under these regulations, the primary obligation on individuals or groups is to seek the Treasurer's consent before accepting valuable consideration from more than nineteen people or from an amount exceeding ten thousand pounds within a year. This consent requirement ensures that the Treasurer has oversight and can regulate capital issues to maintain national security and economic stability. Non-compliance with these provisions would mean that any business venture financed in such a manner would be deemed unlawful.
Breach of these regulations could lead to significant legal consequences. The specific offences and penalties are not detailed in the text, but generally, such violations might be treated as serious infractions under the National Security Act 1939-1943. Depending on the nature and severity of the breach, penalties could range from fines to imprisonment, reflecting the importance of adhering to these regulations to protect national security and economic interests.