EXPLANATORY STATEMENT No. 149
Statutory Rules No of 1989 - Minister for Telecommunications and
Aviation Support
Subject - Australian Telecommunications Corporation Act 1989
Telecom Australia Stock Regulations
The Australian Telecommunications Corporation (Telecom Australia Stock) Regulations, made under the Telecommunications Act 1975, (the 1975 Act), provided for the issue by Telecom of inscribed stock, called Telecom Australia Stock.
The 1975 Act is repealed from 1 July by the Telecommunications and Postal Services (Transitional Provisions and Consequential Amendments) Act 1989. Telecom is continued in operation by the Australian Telecommunications Corporation Act (the Corporation Act) which also operates from 1 July. With the repeal of the 1975 Act, the Australian Telecommunications Corporation (Telecom Australia Stock) Regulations cease to have effect.
Section 57 of the Corporation Act provides that Telecom may borrow money from persons other than the Commonwealth. Under paragraph 105(b), the Governor-General may make regulations necessary or convenient for giving effect to the Act. Section 4 of the Acts Interpretation Act 1901 provides that where an Act, being an Act that is not to come into operation immediately upon its enactment, is expressed to confer power, among other things, to make regulations, that power may be exercised, and anything may be done for the purpose of enabling the exercise of the power before the Act comes into operation; the regulations come into operation on the day on which the Act comes into operation.
The Telecom Australia Stock Regulations repeat the substance of the previous Regulations with minor modifications to ensure that a legal framework for the issuing of Telecom stock continues after the repeal of the 1975 Act. In line with the Government’s reforms for Government Business Enterprises, the approval of the Treasurer is no longer required for issuing stock or for the terms and conditions on which it is issued. This is a matter for the Telecom Board which has the responsibility to approve the prospectus required where members of the public are invited to purchase stock.
The Regulations save stock and prospectuses issued under the previous Regulations as if they had been issued under these Regulations.
Details of the regulations are set out in the Attachment.
Authorised by the Minister for
Telecommunications and Aviation Support
ATTACHMENT
Details of the proposed Telecom Australia Stock Regulations
Regulation 1 |
| Citation of Regulations |
Regulation 2 |
| Interpretation, including: |
|
| “previous Regulations” means the Telecommunications (Telecom Australia Stock) Regulations |
Regulation 3 |
| Provides for Telecom to issue securities by way of inscribed stock |
Regulation 4 |
| Provides for terms and conditions of stock |
|
| The terms and conditions as to prices, yields to maturity, interest etc are determined by the Board or consistent with a Board determination |
|
| Telecom may purchase issued stock and re-sell it or cancel it and issue and sell new stock in its place |
|
| Stock open to public subscription must be through a prospectus, approved by the Telecom Board, setting out all the terms and conditions |
Regulation 5 |
| Provides for application by members of the public by an approved form accompanying the prospectus |
Regulation 6 |
| Provides for Telecom to arrange for the provision of Registries for the inscription of stock |
Regulation 7 |
| Provides for the creation of Stock Ledgers (with a limit of 4 on the names to be inscribed and no stock inscribed for a person under 18 years) |
Regulation 8 |
| Prohibits notice of any trust being kept in the Stock Ledger |
Regulation 9 |
| Requires stock held for executors, administrators or trustees to be inscribed in their individual names |
Regulation 10 |
| Provides for alteration of the Stock Ledger to record changes of name, address or designation on request |
Regulation 11 |
| Requires the keeping of Sales and Transfer Registers |
Regulation 12 |
| Provides that where stock is transmitted to a person the person may apply to be registered as the owner |
Regulation 13 |
| Provides for transfer of stock by the owner |
Regulation 14 |
| Provides for the transfer of stock within Registries |
Regulation 15 |
| Provides for the transfer of stock between Registries without change of ownership |
Regulation 16 |
| Provides for transfer between Registries with change of ownership |
Regulation 17 |
| Provides for Telecom to mark a transfer of stock on application |
Regulation 18 |
| Provides for transfer of stock for bodies corporate |
Regulation 19 |
| Requires a specimen signature for persons in whose name stock is inscribed |
Regulation 20 |
| Provides for the issue of stock certificates |
Regulation 21 |
| Limits the registration of transactions within 14 days before interest is due or before maturity |
Regulation 22 |
| Provides for payment of interest |
Regulation 23 |
| Provides for interest to cease on maturity |
Regulation 24 |
| Provides for redemption of stock by payment in accordance with the prospectus |
Regulation 25 |
| Makes transitional arrangements to ensure the continuity of stock issued under the “previous Regulations” of the rights of persons in relation to that stock and of prospectuses issued under the previous Regulations. |