War Service Homes (Staff) Regulations (Amendment)

Legislation au C1944L00099 Regulations Not in force Legislative Instrument

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STATUTORY RULES.

1944. No. 99.

 

REGULATIONS UNDER THE NATIONAL SECURITY ACT 1939-1943.*

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 National Security Act 1939-1943.

Dated this twenty-ninth day of June, 1944.

GOWRIE

Governor-General.

By His Excellency’s Command,

J. B. CHIFLEY

for and on behalf of the Minister of State for Defence.

 

Amendments of the National Security (Economic Organization) Regulations.†

Certain share transactions forbidden.

1. Regulation 7 of the National Security (Economic Organization) Regulations is amended—

(a) by omitting sub-regulations (2.) and (3.) and inserting in their stead the following sub-regulations:—

“(2.) Nothing in the last preceding sub-regulation shall prevent—

(a) the sale of any debentures by a personal representative of a deceased person, by a trustee of the estate of a deceased person or by a trustee in bankruptcy, in his capacity as such, or by a mortgagee or sub-mortgagee in exercise of a power of sale;

(b) the sale by any person of any debentures of which that person has been the beneficial owner for not less than six months;

* Notified in the Commonwealth Gazette on 30th June, 1944.

† Statutory Rules 1942, No. 76, as amended by Statutory Rules 1942, Nos. 81, 110, 127, 145, 160, 218, 221, 224, 248, 257, 293, 318, 332, 344, 425, 458, 490, 537 and 539; 1943, Nos. 21, 60, 76, 142 and 278; and 1944, Nos. 52 and 83.

3193.—Price 3d.


(c) the sale, by a personal representative of a deceased person, by a trustee of the estate of a deceased person or by a trustee in bankruptcy, in his capacity as such, or by a mortgagee or sub-mortgagee in exercise of a power of sale, of any shares or stock officially listed by a recognized Stock Exchange in Australia, where the sale is made through a member of any such Stock Exchange;

(d) the sale by any person of any shares or stock officially listed by any such Stock Exchange, where the shares or stock have been registered in the name of that person for not less than five months and the sale is made through a member of any such Stock Exchange; or

(e) the sale of any shares or stock not so listed—

(i) by a personal representative of a deceased person, by a trustee of the estate of a deceased person or by a trustee in bankruptcy, in his capacity as such, or by a mortgagee or sub-mortgagee in exercise of a power of sale; or

(ii) where the shares or stock have been registered in the name of the seller for not less than five months,

but nothing in this paragraph shall authorize the sale of any shares or stock where, as the result of the sale, the purchaser will have acquired, since the fifteenth day of June, 1944, the beneficial ownership of shares or stock, or of any class of shares or stock, in any company exceeding in nominal value one-quarter of the nominal value of the shares or stock issued by that company, or of that class of shares or stock so issued, as the case may be.

“(3.) Upon submission to a company of a transfer of any shares, stock or debentures, the company shall not register the transfer unless—

(a) the Treasurer has consented to the transaction to which the transfer relates;

(b) the company is satisfied that the transaction is not in contravention of any of the provisions of these Regulations; or

(c) in the case of shares or stock which are officially listed by a recognized Stock Exchange in Australia and have been registered in the name of the transferor for not less than five months, the transfer bears the stamp of a member of any such Stock Exchange.


“(3a.) In any case where, by reason of the provisions of the last preceding sub-regulation, a company is required not to register a transfer of any shares, stock or debentures submitted to the company for registration, the company shall forthwith report the facts to the Treasurer.”; and

(b) by inserting in sub-regulation (6.) after the word “not” the words “, without the consent in writing of the Treasurer,”.

Registrar of Titles may require evidence that transactions are not in contravention of regulations.

2. Regulation 10b of the National Security (Economic Organization) Regulations is amended by omitting sub-regulation (2.).

False statements.

3. Regulation 20 of the National Security (Economic Organization) Regulations is amended by inserting after the word and symbols “Part III.” the word and symbols “, Part IIIa.”.

Contracts to evade Regulations.

4. Regulation 21 of the National Security (Economic Organization) Regulations is amended—

(a) by inserting in paragraph (a), after the word and symbols “Part III.”, the words and symbols “or Part IIIa.”; and

(b) by inserting in paragraph (b), after the word and symbols “Part III.”, the word and symbols “, Part IIIa.”.

Power to obtain information.

5. Regulation 22 of the National Security (Economic Organization) Regulations is amended by inserting in sub-regulation (1.), after the word and symbols “Part III.,”, the word and symbols “Part IIIa.,”.

 

By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra.

Overview

The Statutory Rules 1944 No. 99, known as the Regulations under the National Security Act 1939-1943, were enacted to provide further regulation and control over economic activities that could potentially affect national security during wartime. These Regulations were issued under the authority of the Governor-General, acting on advice from the Federal Executive Council, and came into effect on 29 June 1944. They were designed to address the problem of controlling economic transactions, particularly the transfer of shares and debentures, to prevent any activities that could compromise the nation's security. The policy objective of these Regulations was to ensure that the economic actions taken during the war did not inadvertently empower any individual or entity to gain undue control over significant parts of the nation's industries or financial institutions.

Scope and Application

The Statutory Rules 1944, No. 99, made under the National Security Act 1939-1943, amends the National Security (Economic Organization) Regulations to refine and tighten controls over certain share transactions, ensuring that they do not inadvertently contribute to the concentration of economic power in a manner that could be detrimental to national security. The regulations apply to various entities, including personal representatives, trustees, and mortgagees, and govern the sale of shares or debentures under specific conditions. The amendments are designed to prevent any single entity from acquiring a significant portion of a company's shares post-June 15, 1944, without the consent of the Treasurer, thus maintaining a balanced economic structure that aligns with national security interests. Furthermore, the Registrar of Titles is empowered to request evidence that transactions comply with these regulations, reinforcing the oversight mechanisms in place.

Key Provisions

The main operative sections of these regulations under the National Security Act 1939-1943 pertain primarily to the amendments of the National Security (Economic Organization) Regulations. Regulation 7 is amended to specify certain exceptions and conditions under which share and debenture transactions can proceed, while Regulation 10b is also altered to reflect the requirement for evidence that transactions are not in contravention of these regulations. Additionally, Regulation 20 is amended to include Part IIIa, extending the scope of the regulations to cover false statements and contracts intended to evade the provisions of the Act. Regulation 21 is similarly updated to encompass Part IIIa, and Regulation 22 is amended to allow the Registrar of Titles to require evidence that transactions comply with the regulations. These regulations impose specific obligations on parties involved in share and debenture transactions. They require compliance with the conditions outlined in Regulation 7, ensuring that transactions are conducted by authorised individuals or entities and that the sale does not result in the acquisition of more than one-quarter of the nominal value of shares or stock issued by a company. Companies are mandated to withhold registration of transfers unless they receive consent from the Treasurer, are satisfied that the transaction complies with the regulations, or the transfer is stamped by a member of a recognised Stock Exchange. Furthermore, companies must report to the Treasurer any transactions that cannot be registered due to the provisions of these regulations. Breach of these regulations can lead to various legal consequences. Offences under the National Security Act may result in civil and criminal penalties. The maximum penalties for breaches can include fines and imprisonment, depending on the severity of the offence. For instance, making false statements or entering into contracts intended to evade the regulations can lead to significant penalties. The precise penalties are not detailed in the provided text, but under the National Security Act, they can be substantial, reflecting the seriousness with which the government treats violations of these regulations.

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