EXPLANATORY STATEMENT
STATUTORY RULE 1987 No 338 ISSUED BY THE AUTHORITY OF THE MINISTER FOR TRANSPORT AND COMMUNICATIONS
Section 112 of the Telecommunications Act 1975 (‘the Act’) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted to be prescribed by the regulations, or which are necessary or convenient to be prescribed by the regulations, for carrying out or giving effect to the Act.
Section 72A of the Act provides, inter alia, that the Australian Telecommunications Commission (‘Telecom’) may, with the approval of the Treasurer, borrow money, or raise money otherwise than by borrowing, by dealing with securities.
Regulation 3 of the Telecommunications (Telecom Australia Stock) Regulations (‘the Stock Regulations’) provides that Telecom may issue securities by way of inscribed stock, called Telecom Australia Stock (‘stock’).
Subregulation 13(2) of the Stock Regulations formerly provided that the owner of stock shall not transfer stock having a face value that is less than $100 or is not a multiple of $100. That restriction was making it difficult for Telecom to deal in new instruments such as Managed Investment Bond products, and handle the increasing demand for transfers of past holdings of stock in amounts that were not multiples of $100.
This was causing overheads in Telecom administration and was resulting in inconvenience to the investor.
The statutory rule omits subregulation 13(2), removing those restrictions on transfer of stock.