EXPLANATORY STATEMENT
Statutory Rule 1983 No. 265 Issued By The Authority of the Minister for Communications
Sub-section 45(1) of the Overseas Telecommunications Act 1946 (the Act) enables the Overseas Telecommunication Commission (the Commission) to borrow moneys with the approval of the Treasurer from time to time in such amounts as are certified by the Minister as necessary for the exercise of its powers or the performance of its duties or functions under the Act.
Sub-section 45(3A) of the Act provides that the Commission may borrow moneys by way of issue of securities of such kinds as are prescribed.
The proposed Regulations provide for the issue of inscribed stock for the purposes of raising money by way of loan and the procedures related thereto.
Details of the proposed Regulations are attached:
Attachment
Details of the proposed Regulations are as follows:
Regulation 1 provides a citation for the Regulations.
Regulation 2 provides definitions of a number of terms which occur frequently throughout the Regulations.
Regulation 3 provides that the Commission may issue securities by way of inscribed stock for raising money by way of loan or for converting a loan.
Regulation 4 provides that the stock may be issued and sold on such terms and conditions as are approved by the Treasurer. A prospectus detailing the terms and conditions must be issued where members of the public are invited to purchase stock.
Regulation 5 provides that applications for stock must be made in the approved form and must in the case of joint accounts specify an address for payments of interest or a redemption.
Regulation 6 provides for the establishment of Registries for the inscription of stock.
Regulation 7 provides that the name, address, designation of and amount owned by the owner be entered in a Stock Ledger kept at a Registry. Stock is not to be inscribed in the name of more than four persons or in the name of a person under the age of eighteen. There the stock is owned by more than one person the address to be recorded is the one nominated under Regulation 5.
Regulation 8 provides that no notice of any trust shall be received or entered in the Stock Ledger.
Regulation 9 provides that stock is not to be inscribed in the names of executors, administrators or trustees as such but in their individual names.
Regulation 10 provides that changes relating to a stock owner’s name address or designation will be entered in the Stock Ledger where an application for the alteration has been made in an approved form.
Regulation 11 provides that a Sales and Transfers Register be kept to enter particulars of any dealings or transactions in respect of stock.
Regulation 12 provides procedures for the transmission of stock by way of any dealing or consequent upon death or bankruptcy.
Regulation 13 provides that an owner may transfer stock in any manner provided for in the Regulations provided the stock has a face value of more than $100 and is in multiples of $100.
Regulation 14 provides that stock may be transferred within one Registry from one person to another provided the approved forms are used and the signatures on the instruments are verified in an approved manner. The Commission effects the transfer by cancelling the inscription of stock and inscribing it in the name of the transferee in the Stock Ledger.
Regulation 15 provides that stock may be transferred from one person whose name is inscribed at one Registry to the name of another person at another Registry. The stock must be transferred in the approved form executed by both parties and with both signatures verified in the approved manner. The Commission effects the transfer by cancelling the inscription of stock in the name of the transferor and inscribing the stock in the name of the transferee in the Stock Ledger at the other Registry.
Regulation 16 provides that stock may be transferred from one Registry to another without a change of ownership, on application in the approved form, by the owner of the stock. The inscription of stock so transferred must be cancelled at the first Registry.
Regulation 17 provides that the Commission shall mark a transfer of stock on application by the owner and the Commission shall not give effect to any dealing in stock so marked for 42 days from the day of marking.
Regulation 18 provides that where stock is inscribed or proposed to be inscribed the Commission may require the body corporate to lodge evidence that instruments required to be executed are executed in a manner that is effective in law and binds the body corporate.
Regulation 19 provides that a person whose name is inscribed in relation to stock must lodge a specimen signature verified in an approved manner at the Registry.
Regulation 20 provides that the Commission shall issue a stock certificate in an approved form to an owner of stock upon his application. The lack of a stock certificate will not prevent disposal of the stock and the Commission must keep a record of all stock certificates issued.
Regulation 21 provides that no registration of any transaction shall be made within 14 days prior to the interest date or one month prior to the maturity date of stock without the consent of the Commission.
Regulation 22 provides for the procedures to be followed in the paying of interest to the owner or owners of stock.
Regulation 23 provides that interest shall cease on the date of maturity of stock.
Regulation 24 provides for procedures to be followed for the redemption of stock by the Commission on application by the person or persons in whose name the stock is inscribed.
Regulation 25 provides that the Commission may purchase and resell any issued stock.