Commonwealth Numbered Regulations - Explanatory Statements

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CORPORATIONS REGULATIONS (AMENDMENT) 1996 NO. 55

STATUTORY RULES 1996 No. 55

Issued by the Authority of the Treasurer

Corporations Act 1989

Corporations Regulations (Amendment)

Section 22 of the Corporations Act 1989 (the Act) empowers the Governor-General to make regulations, not inconsistent with the Act or the Corporations Law, prescribing, inter alia, matters which are required by the Corporations Law to be prescribed by regulations, or necessary or convenient to be prescribed by regulations for carrying out or giving effect to the Corporations Law.

Section 9 of the Corporations Law defines an "authorised trustee corporation" as a body corporate declared in the regulations to be an authorised trustee corporation. Regulation 7.1.01 of the Corporations Regulations provides that a body corporate listed in Schedule 9 of the Corporations Regulations is an authorised trustee corporation.

The purpose of the regulations is to update Schedule 9 by adding a number of entities to the list.

In particular, the regulations will amend Schedule 9 by adding CHESS Depositary Nominees Pty Limited. The inclusion facilitates the new depositary arrangement for the transfer of foreign securities through the paperless Clearing House Electronic Subregister System (CHESS).

Some foreign jurisdictions do not permit the transfer of legal title through uncertificated electronic systems. The Australian Stock Exchange has developed a depositary arrangement utilising CHESS Units of Foreign Securities (CUFS) to enable the settlement of transactions in foreign securities through CHESS. Legal title will be vested in CHESS Depositary Nominees which will issue corresponding CUFS to the beneficial owner of the securities.