STATUTORY RULES.
1926. No. 59.
REGULATIONS UNDER THE TREATY OF PEACE (GERMANY) ACT 1919-1920.
I, THE GOVERNOR-GENERAL in and over the Commonwealth of, Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Treaty of Peace (Germanys Act 1919-1920, to come into operation forthwith.
Dated this 29th day of April, 1926.
(Sgd.) STONEHAVEN
Governor-General.
By His Excellency’s Command,
for Treasurer.
Amendment of Treaty of Peace Regulations.
(Statutory Rules 1920, No. 25, as amended to this date.)
Sale of shares in commercial partnership to person in whom other shares have vested.
1. After regulation 36 of the Treaty of Peace Regulations the following regulation is inserted:—
“36A.—(1) Notwithstanding anything contained in these Regulations, where the property rights or interests revested in any person under the last preceding regulation consist of a share or shares in a commercial partnership (Gesellschaft mit beschränkter Haftung), and the share or shares of the other partner or partners in that commercial partnership continue to be vested in the Custodian, the Custodian may sell to that person, on such terms and conditions as the Custodian thinks fit, the share or shares in that commercial partnership that continue to be vested in the Custodian;
Provided that the terms as to payment shall not in any case be more advantageous to the purchaser than those specified in paragraph (2) of sub-regulation (1.) of regulation 50 of these Regulations, reading that paragraph as if—
(a) in sub-paragraph (a) there were substituted for the words ‘forwarded with the tender by way of deposit’ the words ‘paid on the execution of the agreement by the purchaser’; and
(b) in sub-paragraph (b) there were substituted for the words ‘that his tender has been accepted’ the words ‘of the execution of the agreement by the Custodian’.
C.5470.
“(2.) Until the whole of the purchase money and interest thereon is paid the purchaser shall not, except with the consent in writing of the Custodian and subject to such conditions as the Custodian imposes, be entitled—
(a) to assign or transfer the whole or any of his rights under the agreement made between the purchaser and the Custodian for the sale of a share or shares in a commercial partnership or to charge those rights in any way with the payment of any money;
(b) to sell transfer lease mortgage or otherwise dispose of or encumber any real property comprised in the assets of the commercial partnership or enter into any agreement for the sale transfer lease mortgage or disposal or encumbrance of any such real property.
“(3.) Any sale transfer lease mortgage disposal encumbrance contract or agreement made granted or entered into in contravention of this regulation shall be void and of no effect.
“(4.) Any agreement made by the Custodian under this regulation for the sale of a share or shares in a commercial partnership may confer upon the Custodian the power (to be exercised upon the default of the purchaser) of cancelling the agreement, and, in his discretion, forfeiting any moneys previously paid thereunder, and a power so conferred shall be valid and effectual notwithstanding any rule of law or equity to the contrary.”
2. Regulation 36a of the Treaty of Peace Regulations is amended by omitting from sub-regulation (1.) the words “the last preceding regulation”, and inserting in their stead the words “regulation 36 of these Regulations”.
Printed and Published for the Government of the Commonwealth of Australia by H. J. Green, Government Printer for the State of Victoria.
Overview
The Treaty of Peace (Germany) Act 1919-1920 was enacted to establish regulations concerning the management and disposition of property rights and interests that were revested in German nationals or entities following the Treaty of Versailles. The Act provided a legislative framework for the administration of such assets, ensuring that they were handled in accordance with the terms of the peace treaty. The Treaty of Peace (Germany) Regulations 1926, made under the authority of this Act, further detailed the procedures and conditions under which these assets could be managed and sold. The policy objective of these regulations was to facilitate the orderly transfer and sale of vested property rights while ensuring that the terms and conditions were fair and transparent. The enactment of these regulations was overseen by the Federal Executive Council and authorised by the Governor-General, reflecting the legislative authority vested in the Commonwealth of Australia to manage post-war reparations and restitution.
Scope and Application
The Treaty of Peace (Germany) Regulations, as amended, govern the sale of shares in a commercial partnership in Germany, specifically Gesellschaft mit beschränkter Haftung, to individuals whose other shares in the partnership have already been revested. The regulations apply to the Custodian of Enemy Property, who is authorised to sell shares in such partnerships under specific conditions. These conditions include restrictions on the terms of payment, ensuring they are not more advantageous than those outlined in regulation 50, and provisions that the purchaser cannot assign, transfer, or encumber rights or assets of the partnership without the Custodian's consent until full payment is made. The regulations also allow the Custodian to void any agreements made in contravention of these provisions and to cancel the sale agreement, forfeiting any payments made by the purchaser in the event of default. These regulations extend to the Commonwealth of Australia, applying specifically to transactions involving the Custodian of Enemy Property in relation to German commercial entities. The regulations do not specify exclusions or thresholds but are subject to amendment by subordinate instruments under the authority of the Treaty of Peace (Germany) Act 1919-1920.
Key Provisions
The main operative sections of these Regulations involve the amendment of existing Treaty of Peace Regulations to allow the sale of shares in a commercial partnership under certain conditions (Reg. 1). Specifically, regulation 36A provides that if property rights or interests, such as shares in a commercial partnership, have reverted to a person, and the shares of other partners remain vested in the Custodian, the Custodian may sell these shares to that person under specific terms (Reg. 1(1)). This regulation allows the sale provided that the terms of payment are not more advantageous to the purchaser than those specified in regulation 50 (Reg. 1(1)(b)). The purchaser is also restricted from assigning or transferring their rights under the agreement or disposing of real property without the Custodian's written consent until the purchase price is fully paid (Reg. 1(2)). Any agreements made in contravention of this regulation are declared void (Reg. 1(3)). The Custodian may also have the power to cancel the agreement and forfeit any payments made if the purchaser defaults (Reg. 1(4)).
The Regulations impose several obligations and requirements on the parties involved. The Custodian must ensure that any sale of shares in a commercial partnership adheres to the conditions set out in regulation 36A, particularly the payment terms and restrictions on the purchaser's rights (Reg. 1(1), Reg. 1(2)). The purchaser must pay the purchase price and interest on the terms specified and cannot assign, transfer, charge, or otherwise dispose of their rights or any real property until the full payment is made (Reg. 1(2)). The Custodian has the discretion to cancel the agreement and forfeit any payments if the purchaser defaults (Reg. 1(4)). These obligations ensure that the sale of shares is conducted fairly and in accordance with the terms stipulated in the Regulations.
There are specific civil consequences for breach of the Regulations. Any sale, transfer, lease, mortgage, disposal, encumbrance, contract, or agreement made in contravention of regulation 36A is declared void and of no effect (Reg. 1(3)). This means that any attempt to circumvent the conditions set out in the Regulations will result in the agreement being legally unenforceable. Additionally, the Custodian has the power to cancel the agreement and forfeit any moneys previously paid by the purchaser in case of default, ensuring that the Custodian's interests are protected (Reg. 1(4)). These provisions serve as a deterrent against non-compliance and maintain the integrity of the sale process as outlined in the Regulations.