STATUTORY RULES.
1919. No. 175.
REGULATIONS UNDER THE WAR PRECAUTIONS ACT 1914–1918.
I, SIR ARTHUR LYULPH STANLEY, the Deputy of 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 War Precautions Act 1914–1918, to come into operation forthwith.
Dated this second day of July, 1919.
A. L. STANLEY,
Deputy of the Governor-General.
By His Excellency’s Command,
E. J. RUSSELL,
Acting Minister of State for Defence.
Amendment of the War Precautions (Enemy Shareholders) Regulations.
(Statutory Rules 1916, No. 38, as amended by Statutory Rules 1916, Nos. 42, 54, 62, and 325; by Statutory Rules 1917, Nos. 101, 138, 194, and 229; by Statutory Rules 1918, Nos. 74 and 147; and by Statutory Rules 1919, Nos. 8 and 46.)
1. After regulation 11a of the War Precautions (Enemy Shareholders) Regulations, the following regulation is inserted:—
Scrip declared void in certain cases.
“11ab. (1) Where shares have, prior to the commencement of this regulation, been transferred to the Public Trustee in pursuance of regulation 9 of these Regulations, and the scrip for those shares has not been forwarded to the Public Trustee before such commencement but the company in which the shares were held has issued fresh scrip to the person who purchased the shares from the Public Trustee, the old scrip shall be, and the same is hereby declared to be, void and of no effect.
“(2) Where an order has, after the commencement of this regulation, been made under regulation 9 of these Regulations, and the scrip for the shares to which the order relates is not forwarded to the Public Trustee in pursuance of sub-regulation (3) of that regulation and fresh scrip is issued to the person who has purchased the shares from the Public Trustee, the old scrip shall, upon the issue of the new scrip, be void and of no effect.”.
Printed and Published for the Government of the Commonwealth of Australia by Albert J. Mullett, Government Printer for the State of Victoria.
Overview
The Statutory Rules 1919 No. 175, Regulations under the War Precautions Act 1914–1918, were enacted to address issues related to enemy shareholders and the administration of shares during wartime. This legislative instrument was issued by Sir Arthur Lyulph Stanley, the Deputy of the Governor-General in and over the Commonwealth of Australia, on the advice of the Federal Executive Council. The primary objective of these regulations is to ensure the proper handling of shares held by enemy shareholders and to maintain the integrity of the share transfer process during the war. These regulations are an amendment to the existing War Precautions (Enemy Shareholders) Regulations, refining the procedures regarding the declaration of scrip void in specific circumstances to prevent any misuse or improper transfer of shares during the conflict.
Scope and Application
The War Precautions (Enemy Shareholders) Regulations 1919, made under the War Precautions Act 1914–1918, apply to all entities and individuals within the Commonwealth of Australia that have shares in companies previously held by enemy shareholders. The regulations pertain specifically to the management and transfer of shares that were held by persons deemed enemies under the act, ensuring that such shares do not fall into the hands of entities or individuals that could potentially aid enemy nations during wartime. These regulations are designed to safeguard national security by controlling the transfer of shares in companies where enemy shareholders had interests. The scope of these regulations is national, applying uniformly across the Commonwealth of Australia. The regulations also outline procedures for declaring certain scrip void under specific conditions, ensuring that any transfer of shares that do not comply with the prescribed procedures are legally nullified. The regulations are enforced through subordinate instruments, allowing for further clarifications and amendments as necessary to address evolving circumstances during the wartime context.
Key Provisions
The primary sections of these Regulations, particularly regulation 11ab, address the treatment of share scrip under specific circumstances. Regulation 11ab (1) states that if shares have already been transferred to the Public Trustee prior to the commencement of these Regulations, and the original share certificates (scrip) for those shares have not been forwarded to the Public Trustee by the time the regulation takes effect, but the company has issued new share certificates to the person who purchased the shares from the Public Trustee, then the old share certificates are declared void and have no legal effect. Regulation 11ab (2) further specifies that if an order is made after the commencement of these Regulations and the original share certificates for the shares involved are not forwarded to the Public Trustee, and new certificates are issued to the purchaser from the Public Trustee, the original certificates become void upon the issuance of the new ones.
These Regulations impose specific obligations on parties involved with enemy shareholders and their share certificates. For instance, they require companies to issue new certificates to buyers from the Public Trustee and ensure that the old certificates are rendered void. This is designed to prevent any legal claim or benefit from the old share certificates and to ensure that all transactions are processed through the Public Trustee, thereby maintaining control and oversight over enemy-held assets.
Failure to comply with these Regulations can lead to various consequences. While the text does not explicitly detail specific penalties or sanctions, the voiding of share certificates signifies a significant legal consequence for non-compliance. Individuals or companies that do not adhere to the prescribed process for transferring and cancelling share certificates may face legal challenges or penalties as determined by applicable laws. This includes potential civil actions for breach of regulation or administrative actions to enforce compliance.