STATUTORY RULES.
1917. No. 138.
REGULATIONS UNDER THE WAR PRECAUTIONS ACT 1914-1916.
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 War Precautions Act 1914-1916, to come into operation forthwith.
Dated this twentieth day of June, One thousand nine hundred and seventeen.
R. M. FERGUSON,
Governor-General.
By His Excellency’s Command,
G. F. PEARCE,
Minister of State for Defence.
Amendment of War Precautions (Enemy Shareholders) Regulations.
(Statutory Rules 1916, No. 38, as amended by Statutory Rules 1916, Nos. 42, 54, 62 and 325, and Statutory Rules 1917, No. 101).
1. Regulation 9 of the War Precautions (Enemy Shareholders) Regulations is amended by adding at the end thereof the following sub-regulation:—
“(4) Any order which is or purports to have been made under this Regulation shall so long as it remains unrevoked be deemed to be valid notwithstanding that it may subsequently appear that the shareholder in relation to whose shares the order was made is not in fact an enemy subject or a naturalized person of enemy origin to whom an exemption from the provisions of these Regulations has not been granted, as the case may be; and any action taken under any such order while it is so unrevoked shall be deemed to have been as validly taken as if the shareholder in relation to whose shares the order was made were in fact an enemy subject or a naturalized person of enemy origin to whom an exemption has not been granted, as the case may be.”
2. Regulation 11 of the War Precautions (Enemy Shareholders) Regulations is amended by adding, after sub-regulation (4), the following sub-regulation:—
“(5) Where in pursuance of this regulation the Public Trustee proposes to sell any shares, the company which issued the shares may, unless it is a company with which trading is prohibited under any Proclamation made by the King or by the Governor-General relating to trading with the enemy, purchase the shares, any law or any regulation of the company to the contrary notwithstanding, and any shares so purchased may from time to time be re-issued by the company.”
C.7540.—Price 3d.
3. After Regulation 11 of the War Precautions (Enemy Shareholders) Regulations the following regulations are inserted:—
Registration of transfer without production of any certificates, &c.
“11a. (1) Where the Public Trustee executes a transfer of any shares which have been transferred to or vested in him under these Regulations, the company in whose books the shares are registered shall, upon the receipt of the transfer so executed by the Public Trustee and upon being required by him so to do, register the shares in the name of the Public Trustee or other transferee, notwithstanding any regulation or stipulation of the company and notwithstanding that the Public Trustee is not in possession of the certificate, scrip, or other document of title relating to the shares transferred; but such registration shall be without prejudice to any lien or charge in favour of the company or to any other lien or charge of which the Public Trustee has notice.
“(2) If any question arises as to the existence or amount of any lien or charge the question may, on application being made for the purpose, be determined by the High Court or a Justice thereof.
Transfer by Public Trustee evidence of compliance with regulations.
“11b. The transfer on sale by the Public Trustee of any shares in any company shall be conclusive evidence in favour of the purchaser and of the Public Trustee that the requirements of these Regulations have been complied with.”
Printed and Published for the Government of the Commonwealth of Australia by Albert J. Mullett, Government Printer for the State of Victoria.
Overview
Statutory Rules 1917 No. 138, made under the War Precautions Act 1914-1916, was enacted to address the need for the management of enemy shareholders' interests in Australian companies during World War I. The Governor-General, acting with the advice of the Federal Executive Council, issued these regulations to provide a legal framework for the Public Trustee to handle shares owned by enemy shareholders. The policy objective was to ensure that the control and management of such shares did not fall into the hands of the enemy, thereby protecting national security. The regulations included provisions to validate actions taken under previous orders and allowed companies to repurchase their own shares from the Public Trustee, ensuring continuity and stability in the ownership and operation of businesses affected by the war.
Scope and Application
The War Precautions (Enemy Shareholders) Regulations 1917, issued under the War Precautions Act 1914-1916, apply to all persons and entities in Australia who are involved in transactions involving shares that have been transferred to or vested in the Public Trustee due to the shareholders being identified as enemy subjects or naturalized persons of enemy origin. This regulation has a national reach, extending across the Commonwealth of Australia, and it pertains specifically to the management and sale of shares in companies where such shareholders are involved. The regulations allow for the continued validity of orders made under the regulation, even if it is later determined that the shareholder was not an enemy subject or did not meet the criteria specified in the Act. Furthermore, these regulations allow for the registration of shares without the production of certificates or documents of title, provided the transfer is executed by the Public Trustee, and any purchase from the Public Trustee is deemed to comply with the requirements of the regulation. The scope of the regulation is extended through subordinate instruments, as evidenced by the amendments and additional regulations introduced in this statutory rule.
Key Provisions
The main operative sections of these Regulations amend the War Precautions (Enemy Shareholders) Regulations under the War Precautions Act 1914-1916. Regulation 9(4) specifies that orders made under these Regulations remain valid even if it is later determined that the shareholder in question was not an enemy subject or a naturalized person of enemy origin. This ensures that actions taken under such orders are considered valid, regardless of any subsequent findings regarding the shareholder's status (Regulation 9(4)). Regulation 11(5) allows a company, unless it is one with which trading is prohibited, to purchase shares from the Public Trustee, even if it is a company with which trading is prohibited under any Proclamation made by the King or the Governor-General relating to trading with the enemy (Regulation 11(5)). Furthermore, Regulation 11a(1) requires a company to register shares in the name of the Public Trustee or other transferee upon receipt of the transfer executed by the Public Trustee, even without the production of certificates or documents of title (Regulation 11a(1)). Regulation 11a(2) allows the High Court or a Justice thereof to determine any questions regarding liens or charges (Regulation 11a(2)). Finally, Regulation 11b states that the transfer of shares by the Public Trustee serves as conclusive evidence that the requirements of these Regulations have been complied with (Regulation 11b).
These Regulations impose certain obligations on the parties involved. The Public Trustee must execute transfers of shares vested in him under these Regulations (Regulation 11a(1)). The companies must register shares in the name of the Public Trustee or other transferee upon receipt of the transfer executed by the Public Trustee, even without the production of certificates or documents of title (Regulation 11a(1)). If a company wishes to purchase shares from the Public Trustee, it must ensure it is not one with which trading is prohibited under any Proclamation made by the King or the Governor-General relating to trading with the enemy (Regulation 11(5)). The High Court or a Justice thereof has the authority to determine any questions regarding liens or charges (Regulation 11a(2)).
The Regulations do not explicitly state any offences, penalties, or consequences for breach. However, non-compliance with these Regulations could potentially lead to legal disputes, particularly regarding the validity of orders and transfers of shares. For instance, if a company fails to register shares as required by Regulation 11a(1), it could face legal challenges regarding the validity of the transfer. Similarly, if a company purchases shares in violation of Regulation 11(5), it could face legal consequences for engaging in prohibited trading activities.