Commonwealth Numbered Regulations - Explanatory Statements

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BANKS (SHAREHOLDINGS) REGULATIONS (AMENDMENT) 1992 NO. 359

EXPLANATORY STATEMENT

STATUTORY RULES 1992 No. 359

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), including associates (defined in section 9), 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 in the bank. Subsection 10(4) empowers the Governor-General to make an Instrument to fix a percentage of greater than 15 per cent for a person, if he is satisfied that to do so is in the national interest. Subsection 10(5) empowers the Governor-General to vary previous Instruments, and subsection 10(7) allows the Governor-General to revoke previous Instruments made under this section, if he is satisfied that it is in the national interest to do so.

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

Section 8 defines what may be included as an interest in shares for the purposes of the Act. Paragraph 8(9)(d) provides that there shall be disregarded a prescribed interest of such person, or of persons included in such class of persons as is prescribed. The Banks (Shareholdings) Regulations (the Principal Regulations) currently prescribe certain persons and interests in relation to shares in certain banks.

The proposed amendment to the Principal Regulations arose out of the change in name and ownership of the Chase Manhattan Bank Australia Limited (formerly known as Chase AMP Bank Limited) (the bank).

In December 1991 the AMP Society sold most of its 50 per cent share in the bank to its joint venture partner Chase Manhattan Holdings (Australia) Limited (Chase). An Instrument pursuant to subsection 10(7) has been made removing the present approvals granted to AMP and Chase to hold 50 per cent and 100 per cent of the shares in the bank respectively.

A further Instrument has been made which fixes a percentage of 100 per cent under subsection 10(4) and 10(5A) of the Act for Chase and certain associated corporations in relation to their interests in the bank.

Due to this ownership change it was necessary to amend the Schedule to the Principal Regulations to remove any reference to AMP as a disregarded interest. Therefore, it was proposed to amend the Schedule to the Principal Regulations by omitting the previous reference to the Chase AMP Bank Limited, and replacing it with a new item which reflected the bank's new name and new owners.

The effect of the proposed Regulations will be to disregard for the purposes of the Act, the shareholding interests which persons have in the bank arising from associate relationships with Chase and the other corporations listed in the Schedule.


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