Wool International Regulations (Amendment) 1997 No. 356
EXPLANATORY STATEMENT
STATUTORY RULES 1997 No. 356
Issued by the Authority of the Minister for Primary Industries and Energy
Wool International Act 1993
Wool International Regulations (Amendment)
The objects of the Act are to provide for, amongst other things, the disposal and management of the wool stockpile and elimination of the debt associated with the stockpile. Subsection 3(3) of the Act gives registered wool-tax payers who have contributed significantly to the cost of managing, and disposing of, the stockpile a right to share in the surplus funds of Wool International (WI).
The purpose of the Regulations is to provide the ability to govern the operation of a register of equity holders in WI. The register will record the name, personal particulars, number of units of equity held by the registered equity holder, any charge that may exist over the units of equity and the transfer of units of equity to other persons.
The Act was amended on 28 June 1997 to provide for the liquidation of WI and the return of equity to wool-tax payers. The amendments demonstrated the Government's intention to withdraw from the wool market'. The functions of WI are being progressively reduced to core functions associated with the liquidation of the organisation and return of equity to wool-tax payers who had paid the debt reduction component of wool-tax between 1 July 1993 and 30 June 1996.
The amendments to the Act allowed for the liquidation of WI once the wool stockpile has been disposed of and the debt associated with the wool stockpile has been retired.
The Act now provides for the allocation of transferable units of equity to eligible wool-tax payers, and the distribution of the net assets of WI to persons recorded in the register of equity holders as holding units of equity. In accordance with the Act, units of equity have been allocated, and the first distribution of equity to equity holders has been implemented. Payments were made on 31 October 1997, representing about 24 cents for every unit of equity.
Regulations are accordingly required to govern the operation of a register of equity holders in WI.
Details of the Regulations are set out in the Attachment.
The Regulations commenced on gazettal.
ATTACHMENT
Wool International Regulations (Amendment)
Regulation 1 provides for the WI Regulations to be amended as set out in the Regulations (amendment).
Regulation 2 provides for the insertion of a new Part heading before regulation 1, "PART 1- PRELIMINARY".
Regulation 3 provides for the insertion of a new Part heading after regulation 2, "PART 2 - ENTITLEMENT TO SHARE IN MONEY OF WOOL INTERNATIONAL."
Division 1-Definitions
Regulation 2A defines specific terms used in the regulations. Included in these definitions is 'stamp duty compliance certificate'. This relates to the requirement for WI to assure itself that stamp duty, payable on transferring or placing a charge on units of equity under each State or Territory jurisdiction, has been paid before registering the transfer or charge. WI has informed unit holders of this requirement.
Division 2-Register of equity holders
Regulation 2B specifies that nothing in the regulations regarding a registration certificate or unit certificate detracts from the conclusiveness of the register, which is to be kept by use of a computer as specified under regulation 2C.
Regulation 2C specifies that the register of equity holders is to be kept by use of a computer
Regulation 2D requires the date and time each entry is made in the register to be recorded.
Regulation 2E requires registered equity holders to give WI written notice of any change of address as soon as practicable.
Regulation 2F provides for WI correcting and updating entries on the register due to a mistake, omission, false entry or a change of circumstance as soon as practicable.
Division 3-Transfer of units
Regulation 2G specifies documents which are to be given to WI, along with a notice of transfer of units signed by or for the registered equity holder, to allow processing of that transfer.
Regulation 2H specifies that WI must record the date and time received on the notice of transfer, as well as on any other documents given with the notice. If the application is in the form specified, WI must also enter the appropriate details in the register.
Regulation 21 provides for WI to make adjustments to particulars of the transferor of units in the register, and specifies the particulars to be included.
Regulation 2J requires WI to cancel the unit certificate given with the notice of transfer and to provide the transferee and transferor with registration certificates reflecting their unit holdings as soon as practicable.
Regulation 2K provides for WI to return applications for transfer to the applicant if they do not comply with the requirements under section 22H(5) of the Act. WI must explain why the notice of transfer does not comply and ask the person to reapply in the appropriate form.
Division 4-Death etc. of unit holder
Regulation 2L specifies the documents which must be given to WI by the beneficiary or personal representative in applying to be registered as the holder of the units, when either the sole unit holder or holder in common, dies. It deals with both the situation where the applicant is the personal representative of the deceased person and where the applicant is the beneficiary of the deceased holder or co-holder of units.
Regulation 2M specifies the documents which must be given to WI with an application to be registered as the holder of units in the event that a joint unit holder dies.
Regulation 2N specifies the documents which must be given to WI by the trustee of the bankrupt's estate when applying to be registered as the holder of units, in the event that the unit holder becomes bankrupt.
Regulation 2O specifies the documents which must be given to WI by a liquidator of a company when applying to be registered as the holder of units, in the event that the registered holder of units in WI is a company and is wound up.
Regulation 2P specifies that WI must record the date and time received on the application for units where the unit holder has died, become bankrupt or is wound up, as well as on any other documents given with the application. If the application is in the form specified by WI, it must also enter the appropriate details in the register and remove details of the previous holder.
Regulation 2Q requires WI to cancel the unit certificate given with the application mentioned in regulation 2P above, and to provide the applicant or survivor with a registration certificate as soon as practicable.
Regulation 2R provides for WI to return applications to the applicant if they are not in a form approved by WI and are not submitted with the prescribed documents under section 22I(4) of the Act. WI must explain why the application does not comply and ask the person to reapply.
Division 5-Registration of charges
Regulation 2S defines 'beneficiary' in this division as having the same meaning as in section 22J of the Act.
Regulation 2T specifies the documents which must be given to WI in the event that a registered equity holder of units, and a charge beneficiary apply to have particulars of a charge over the units recorded in the register of equity holders.
Regulation 2U specifies that WI must record the date and time received on the application to have a charge recorded against his or her unit holdings in the register, as well as on any other documents given with the application. If the application is in the form specified by WI, it must also enter the appropriate details in the register.
Regulation 2V requires WI to provide the beneficiary with a registration certificate for the units over which a charge is held, and the unit holder for any of the units on which a charge is not held, as soon as practicable.
Regulation 2W provides for WI to return applications to register a charge to the applicant if they do not comply with the requirements under regulation 2T. WI must explain why the application does not comply and ask the person to reapply.
Regulation 2X requires WI to give each charge beneficiary of units written notice of its intention to make a distribution of funds 28 days prior to the intended day of distribution. It must also provide a written request that the charge beneficiary give WI a written statement of the amount that will be secured by a charge on the date on which a distribution becomes payable. This response must be given to WI within 14 days of receiving the notice, so that WI can ensure it does not pay the charge beneficiary more than the amount secured by the charge for the purpose of section 22R(4)(c) of the Act.
Division 6-Miscellaneous
Regulation 2 specifies that WI must enter, adjust or remove particulars referred to in regulations 2H, 21, 2P and 2U in the order they are received by WI.
Regulation 2Z specifies that a person who provides WI with: a notice of transfer; an application for units where the unit holder has died, become bankrupt or is wound up; or an application to have a charge recorded in the register, must also give WI his or her name and a postal address at which he or she may be contacted.
Regulation 2ZA provides for how documents, which are required to be signed by an individual under the regulations, must be signed.
Regulation 2ZB specifies the manner in which copies of documents required under the regulations should be verified as true copies.
Regulation 2W specifies the form in which an application to WI for a new unit or registration certificate should be, in the event that such a certificate is lost or destroyed.
Regulation 2W provides for WI to pay any unclaimed money from a particular distribution of funds into the Unclaimed Money Fund. If WI is satisfied that a person is entitled to an amount from that Fund, WI must pay the amount to the person. WI is not required to pay interest on amounts paid out of the Unclaimed Money Fund.
Regulation 2ZE provides the circumstances in which a person may apply to the Administrative Appeals Tribunal for a review of a decision by WI.
Amending Regulation 4 provides for the insertion of a new Part heading before regulation 3, "PART 3MISCELLANEOUS".
Amending Regulation 5 provides a substitute Regulation 7 (Register of wool-tax payers), which specifies that the register must contain the particulars of each wool-tax payer's contributions to WI. The purpose of this amendment is to clarify, without doubt, that WI is not to record the details of wool tax payers who have paid the research and promotion component of the wool tax since 1 July 1996 on the register.