Commonwealth Numbered Regulations - Explanatory Statements

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BANKS (SHAREHOLDINGS) REGULATIONS (AMENDMENT) 1991 NO. 278

EXPLANATORY STATEMENT

STATUTORY RULES 1991 No. 278

ISSUED BY THE AUTHORITY OF THE TREASURER

BANKS (SHAREHOLDINGS) ACT 1972

BANKS (SHAREHOLDINGS) REGULATIONS (AMENDMENT)

Section 10 of the Banks (Shareholdings) Act 1972 (the Act) generally limits the nominal amount of the voting shares of a bank in which a person (including a corporation) may have an interest to 10 per cent, or 15 per cent with the approval of the Treasurer, of the total nominal amount of the voting shares of the bank. Under subsection 10(4) of the Act the Governor-General may, after application made to the Treasurer by a person, if the Governor-General is satisfied that to do so is in the national interest, fix a higher percentage for that person by instrument published in the Gazette.

Subsection 10(5A) provides that the Governor-General may, on the publication under subsection 10(4) of an instrument fixing a percentage applicable to a corporation in respect of a bank, after application made to the Treasurer by the corporation, by instrument in writing published in the Gazette, declare that, for the purposes of subsection (3), the percentage so fixed is also applicable to the persons who are from time to time relevant officers of the corporation in respect of the bank. Subsection 10(3) provides that where a percentage is applicable in relation to a person, that person may not have a greater nominal amount of shares than the percentage so fixed.

Section 17 of the Act provides that the Governor-General may make regulations for the purposes of the Act.

The Bank of Singapore (BOSA) has informed the Government that OCBC Holdings (Australia) Pty Limited (ORA), the holding company of BOSA, has been wound up. The previous Minister Assisting the Treasurer, on behalf of the previous Treasurer, had given approval in principle to an application by the Oversea-Chinese Banking Corporation (OCBC), the parent company of both OHA and BOSA, to acquire the 70 per cent interest held by OHA and thereby increase its direct ownership of BOSA to 100 per cent. The proposed variation would result in BOSA becoming a wholly owned direct subsidiary of OCBC. This would have no material effect of the control of BOSA since it is already effectively controlled by OCBC.

As required by the Act, an instrument has been gazetted under subsection 10(7) removing the present approvals previously granted to the shareholders in BOSA.

A further instrument has been gazetted which fixes a percentage of 100 per cent under subsection 10(4) for QCBC relation to its interests in BOSA.

In addition, under section 9 of the Act the associates (including all officers, partners, subsidiaries and related companies) of OCBC would also be deemed to have the same interest in BOSA as OCBC. In the case of officers of OCBC, an instrument pursuant to subsection 10(5A) of the Act is proposed which would fix a percentage of 100 per cent in relation to interests in BOSA for those persons who are from time to time relevant officers of OCBC.

Also, in view of the fact that ORA has wound up its operations, it is not necessary for the regulations to contain any reference to OHA in relation to BOSA. The current amendment has deleted that reference from the schedule to the regulations.


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