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1995
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
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to enable the Commissioner of Dormant Funds to revoke a
determination declaring a fund to be dormant where the determination
was based on inaccurate, misleading or incorrect information, and
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to confer on a person who is dissatisfied with a decision revoking
such a determination the right to appeal to the Charity Referees
against the decision, and
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to provide that proposals for the application of a dormant fund do not
have to be advertised unless the value of the fund is more than
$10,000 (instead of $2,000 as at present), and
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to provide for a less stringent advertising procedure in the case of
proposals involving a dormant fund valued at more than $10,000 but
not more than $50,000 where the Commissioner of Dormant Funds is
satisfied that there is an appropriate scheme to which the fund may be
transferred, and
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to make other changes relating to administrative matters.
Clause 2 provides for the proposed Act to commence on a day or days to
be appointed by proclamation.
Clause 3 is a formal provision giving effect to the amendments set out in
Schedule 1.
Determinations of Commissioner of Dormant Funds
Section 2 (2) of the Dormant Funds Act 1942 empowers the Commissioner
of Dormant Funds ("the Commissioner") to determine certain funds to be
dormant funds for the purposes of the Principal Act. This subsection is to be
replaced by proposed section 5A which, as well as empowering the
Commissioner to determine a fund to be a dormant fund, will enable the
Commissioner to revoke a determination if he or she subsequently becomes
satisfied that the determination was based on inadequate, misleading or
incorrect information. (See Schedule 1 [ 10].)
Proposals for the application of dormant funds
Section 11 of the Dormant Funds Act 1942 empowers the Commissioner to
formulate proposals for the application of dormant funds. At present,
proposals involving a dormant fund of not more than $2,000 are referred to
and determined by the Attorney General and are not advertised. Proposals
involving a dormant fund of more than $2,000 have to be advertised in the
Gazette and in at least one newspaper. An amendment to section 12 of that
Explanatory note page 2
Act (which currently relates to proposals for the disposal of a dormant fund
of not more than $2,000) increases that amount to $10,000. Amendments to
section 13 of the Act (which currently deals with proposals for the disposal
of a dormant fund of more than $2,000) will empower the Commissioner, in
the case of a dormant fund of more than $10,000 but not more than $50,000,
to limit publication to a notice in the Gazette, providing the Commissioner is
satisfied that the proposals for the fund are clearly appropriate and the
Commissioner sends a copy of the notice to the persons who were formerly
trustees of the fund. The existing procedure under section 13 will continue
to apply to all other dormant funds of more than $10,000. (See
Schedule 1 [ 11 ] and [12].)
Another amendment to section 13 will reduce from 3 months to 30 days the
period within which a person may make a request to the Commissioner to
refer to the Charity Referees proposals that have been advertised under the
section. (See Schedule 1 [ 12].)
Register of orders under the Dormant Funds Act 1942
Section 15 of the Dormant Funds Act 1942 deals with orders made under
that Act. Subsections (7) and (8) of the section require the Commissioner to
keep an index of all such orders and enable any person, on payment of a fee,
to search the index and any such order. Those subsections are to be replaced
by proposed section 15A, which will require the Commissioner to establish
and maintain a register of orders made under that Act and keep it open for
inspection during ordinary office hours. Any person will be entitled, without
charge, to inspect the register and any order made under that Act. (See
Schedule 1 [13] and [14].)
Appeals to Charity Referees
Proposed section 15B replaces the provisions of section 2 (3)(5) of the
Dormant Funds Act 1942, which confer a right of appeal to the Charity
Referees from a determination of the Commissioner. The proposed section
will also enable a person to appeal to the Charity Referees against a decision
of the Commissioner revoking such a determination. The proposed section
will also make it clear that an appellant can withdraw an appeal under the
section at any time before the appeal has been decided by the Charity
Referees. (See Schedule 1 [4] and [16].)
Explanatory note page 3
Matter may be dealt with in absence of a Charity Referee in
certain cases
Proposed section 16A will enable a matter that the Charity Referees are
dealing with (such as the hearing of an appeal under proposed section 15B)
to be continued in the absence of one of them (other than the chairman) if
the chairman so decides. The section will also allow the remaining Charity
Referees to adjourn consideration of a matter that the Charity Referees are
dealing with if the chairman ceases to hold office or for any other reason is
unable to continue to deal with the matter. (See Schedule l [20].)
Miscellaneous matters
The proposed Act makes other consequential and minor amendments. In
particular, Schedule 1 [22] amends section 19 (Regulations) so as to make
it clear that the Governor may make regulations prescribing the practice and
procedure for proceedings before the Commissioner and before the Charity
Referees. Schedule 1 [23] and [24] deal with savings and transitional
matters arising from the amendments made by the proposed Act.
Explanatory note page 4