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This is a Bill, not an Act. For current law, see the Acts databases.
1998-1999-2000-2001
The
Parliament of the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Commonwealth
Inscribed Stock Amendment Bill 2001
No.
, 2001
(Treasury)
A
Bill for an Act to amend the Commonwealth Inscribed Stock Act 1911, and
for related purposes
Contents
A Bill for an Act to amend the Commonwealth Inscribed
Stock Act 1911, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Commonwealth Inscribed Stock Amendment
Act 2001.
(1) Sections 1 to 3 commence on the day on which this Act receives
the Royal Assent.
(2) Subject to subsection (3), Schedule 1 commences on a day to
be fixed by Proclamation.
(3) If Schedule 1 does not commence under subsection (2) before
the end of the period of 6 months beginning on the day on which this Act
receives the Royal Assent, that Schedule commences on the first day after the
end of that period.
Subject to section 2, each Act that is specified in a Schedule to
this Act is amended or repealed as set out in the applicable items in the
Schedule concerned, and any other item in a Schedule to this Act has effect
according to its terms.
1 Section 3 (definition of certified
copy)
Repeal the definition, substitute:
certified copy of an entry in a Stock Ledger, of an extract
of an entry in a Stock Ledger or of a document means a copy of the entry,
extract or document that is certified by a prescribed person to be a true
copy.
2 Section 3
Insert:
clearing and settlement facility means a facility that is a
clearing and settlement facility for the purposes of Chapter 7 of the
Corporations Act 2001.
3 Section 3 (definition of
Registrar)
Repeal the definition, substitute:
Registrar means a Registrar of Stock or a Deputy Registrar of
Stock.
4 Section 3 (definition of
stock)
Repeal the definition, substitute:
stock means:
(a) stock, Treasury Bonds, Treasury Notes or other prescribed securities
created under subsection 4(1); and
(b) stock (however described) created under subsection 4(1) as in force at
any time before the commencement of Schedule 1 to the Commonwealth
Inscribed Stock Amendment Act 2001; and
(c) Treasury Bonds, debentures or other prescribed securities made out
under subsection 51A(1) at any time before the commencement of subsection
51A(3).
5 Section 3 (definition of Treasury
Bond)
Repeal the definition, substitute:
Treasury Bond includes a Treasury Fixed Coupon Bond, a
Treasury Indexed Bond and an Australian Consolidated Treasury Bond and any
coupon issued in connection with a Treasury Bond.
6 At the end of
section 3
Add:
(2) For the purposes of the application of this Act at a time before the
commencement of Schedule 1 to the Financial Services Reform Act
2001:
(a) a reference in this Act to the operator of a clearing and settlement
facility is taken to be a reference to:
(i) a clearing house as defined by section 9 of the Corporations
Act 2001; or
(ii) the body corporate in relation to which an approval as a clearing
house is in force under section 779B of that Act; and
(b) a reference in this Act to the operating rules of a clearing and
settlement facility is taken to be a reference to the business rules of a
clearing house referred to in paragraph (a).
7 Subsection 4(1)
Repeal the subsection, substitute:
(1) The Governor-General may, by writing signed by him or her, create
stock, Treasury Bonds, Treasury Notes or other prescribed securities from time
to time for:
(a) raising money by way of loan; or
(b) converting any loan raised by the Commonwealth into any other loan so
raised; or
(c) paying any expenses of carrying this Act into effect that the
Governor-General considers are properly payable out of capital.
8 At the end of
section 7
Add:
(2) Stock may be issued by electronic means.
(3) Stock may be issued to a person on trust for other persons.
(4) To avoid doubt, a person to whom stock may be issued under
subsection (3) may be a person who is a Registrar.
(5) The Treasurer may, on behalf of the Commonwealth, enter into such
contracts or arrangements, or execute such deeds of trust or other instruments
as the Treasurer considers to be necessary or convenient for the purposes of, or
in connection with, the issue of stock as provided by
subsection (3).
Note: The heading to section 7 is replaced by the
heading “Issue of stock”.
9 Section 12
Repeal the section.
10 Paragraph 14(b)
Repeal the paragraph.
11 Paragraph 14(c)
After “he”, insert “or she”.
12 At the end of
section 14
Add:
(2) Any person may be appointed as a Registrar.
(3) To avoid doubt, a person that is:
(a) the operator of a clearing and settlement facility; or
(b) an incorporated company or other body corporate;
may be appointed as a Registrar.
(4) A person who holds office as a Registrar must, in the performance of
the functions, or the exercise of the powers, of the holder of the office,
comply with any relevant requirements:
(a) contained in the instrument appointing the person to the office;
or
(b) contained in any contract or arrangement made, or in any deed of trust
or other instrument executed, in connection with the appointment; or
(c) made by the regulations.
13 Section 15
After “owner of the”, insert “legal interest in
the”.
14 At the end of
section 15
Add:
(2) A Stock Ledger may be kept in an electronic form.
15 Sections 17 and 18
Repeal the sections, substitute:
(1) The Registrar must, when requested by a person who is the owner of the
legal interest in any stock, issue to the person a certificate stating that the
person is the owner of the stock.
(2) A certificate issued under subsection (1) is prima facie evidence
that the person specified in the certificate is the owner of the legal interest
in the stock so specified.
(3) The person who is the owner of the legal interest in any stock may
dispose of the interest even though a certificate has not been issued to the
person under subsection (1).
The person whose name is inscribed in a Stock Ledger as the owner of the
stock:
(a) is the owner of the legal interest in the stock; and
(b) has power to transfer the interest as provided by this Act and to give
effectual receipts for any money paid to the person by way of
consideration.
16 Section 19
Omit “his” (wherever occurring), substitute
“the”.
17 Subsection 19(2)
After “Registrar”, insert “in the capacity as
Registrar”.
18 Sections 20 and 21
Repeal the sections, substitute:
Without prejudice to the provisions of this Act relating to the transfer
of the legal interests in stock and notice of trusts, it is the intention of
this Act that equitable interests may be enforced against the owners of legal
interests in stock in the same way as equitable interests may be enforced
against the owners of legal interests in other personal property.
(1) After the commencement of this section, an inscription of stock may
not be made in the name of a person who is, or in the joint names of persons any
one or more of whom is, under the age of 16 years.
(2) However, any stock inscribed at the commencement of this section in
the joint names of a person who is under the age of 16 years and one or more
other persons may continue to be so inscribed but must not, without the order of
a Judge of the Supreme Court of a State or Territory, be transferred until the
person reaches that age or dies.
19 Subsection 24(1)
Repeal the subsection, substitute:
(1) The regulations may make provision for or in relation to the transfer
of legal or equitable interests in stock from one person to another
person.
(1A) The provision that may be made by the regulations under
subsection (1) may include either or both of the following:
(a) a provision for transfer of interests by electronic means;
(b) a provision applying a provision of the Corporations Act 2001
with or without modifications.
20 After section 24
Insert:
(1) The legal interest, and any equitable interests, in any stock may be
transferred from one person to another:
(a) in accordance with regulations made for the purposes of subsection
24(1); or
(b) subject to subsection (2), if the stock is inscribed in a Stock
Ledger at a Registry where the Registrar is the operator of a clearing and
settlement facility—in any way permitted by the operating rules of the
facility (which may, if the operating rules so provide, be a way authorised by
the Corporations Act 2001).
(2) The Treasurer may, by written notice given to the operator of a
clearing and settlement facility, declare that particular operating rules of the
facility are not to apply in respect of the transfer of legal or equitable
interests in stock.
The regulations may require a Registrar that is the operator of a
clearing and settlement facility or is an incorporated company or other body
corporate:
(a) to keep a record (which may be a record kept by electronic means) of
the ownership of any equitable interests in the stock; and
(b) to comply with any provision made by the regulations in relation to
the keeping of such a record.
(1) The regulations may make provision for or in relation to the
inscription in a Stock Ledger of the name of the transferee of a legal interest
in the stock as the owner of the stock.
(2) The provision that may be made by regulations for the purposes of
subsection (1) in relation to the legal interest in stock inscribed in a
Stock Ledger that is kept in an electronic form must be provision for the
inscription of the legal interest in an electronic form.
21 Section 28
Repeal the section, substitute:
A person to whom the legal interest in stock is transmitted may apply to
a Registrar to be inscribed as the owner of the stock in accordance with the
regulations.
22 Subsection 29(2)
After “he”, insert “or she”.
23 Section 30
Repeal the section, substitute:
If the Registrar at a Registry where particular stock is inscribed is
satisfied that the provisions of this Act relating to the transmission of the
legal interest in that stock have been complied with, the Registrar must
register the transmission by entering particulars of it in the relevant Stock
Ledger and inscribe the name of the person to whom the legal interest has been
transmitted in the Stock Ledger as the owner of the stock.
24 Sections 43 and 44
Repeal the sections, substitute:
If an order relating to the legal interest in any stock, or having the
effect of vesting the legal interest in any stock in a person, made by the
Supreme Court of a State or Territory or a Judge of such a Court is served on
the Registrar at the Registry where the stock is inscribed, the Registrar must
make any entries in the relevant Stock Ledger that are necessary for the purpose
of carrying the order into effect.
(1) In any proceeding, a certified copy of:
(a) an entry in a Stock Ledger; or
(b) an extract from an entry in a Stock Ledger; or
(c) a document in the custody of a Registrar that relates to
stock;
is admissible in evidence.
(2) A document purporting to be a certified copy referred to in
subsection (1) is to be taken, unless the contrary is established, to be
such a certified copy and to have been duly given.
25 Section 49
After “entitled to”, insert “the legal interest
in”.
26 Subsection 51H(1)
Omit “under his hand”, substitute “signed by the
Governor-General”.
27 Subsection 51H(1)
After “sections”, insert “4,”.
28 Subsection 51H(2)
Omit “under his hand”, substitute “signed by the
Treasurer”.
29 Paragraph 51H(3)(a)
Omit “him”, substitute “the Treasurer”.
30 Subsection 52A(1)
After “Treasury Bonds,” (wherever occurring), insert
“Treasury Notes,”.
31 After subsection 52A(1)
Insert:
(1A) Stamp duty or other tax under any law of the Commonwealth, law of a
State or law of a Territory is not payable in respect of any inscription,
transfer or transmission of any interest in stock that is effected by electronic
means.
32 Section 54
Repeal the section, substitute:
(1) Each Registrar is to keep a record of the persons:
(a) whose names are entered in a Stock Ledger as the owners of legal
interests in stock; and
(b) in respect of whose stock a claim for interest has not been made for
at least 10 years.
(2) The record may be kept by electronic means.
(3) The record must include such particulars of the address, and
occupation or description, of each person as are entered in the relevant Stock
Ledger.
(4) A Registrar must, on payment of the prescribed fee, make the record
available for inspection by any person.