Commonwealth Numbered Regulations - Explanatory Statements

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TELECOM AUSTRALIA STOCK REGULATIONS (AMENDMENT) 1991 NO. 291

STATUTORY RULES 1991 No. 291

Issued by the authority of the Minister for Transport and Communications

Australian Telecommunications Corporation Act 1989

Telecom Australia Stock Regulations (Amendment)

Section 105 of the Australian Telecommunications Corporation Act 1989 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.

Section 57 of the Act authorises the Australian Telecommunications Corporation (Telecom) to borrow money from persons other than the Commonwealth, ands section 58 authorises it to give security over its assets for those borrowings. The Telecom Australia Stock Regulations (the regulations) set out the manner in which securities, called Telecom Australia Stock, are to be applied for, issued and dealt with.

Up to the present, the regulations prohibited the notation of any trust in the Stock Ledger. This led to a view that Telecom Australia Stock could not be issued to trustees, executors of estates and representatives of small societies and community groups, and as a result Telecom Australia Stock was believed to be less attractive to small investors than some other Commonwealth and State instrumentalities which suffer under no such restriction. The regulations also prohibited the entering of the name of a person under the age of 18 as owner of stock. This restriction deterred some investors seeking a secure medium term investment for children.

Regulation 2 therefore deletes the words "must not" from subregulation 7(3), and substitutes "may", thereby permitting stock to be inscribed in the name of a person under the age of 18 years.

Regulation 3 repeals the former regulation 8 and thereby removes the prohibition on the receipt by Telecom, or entry in the Stock Ledger, of notice of a trust of any kind.

Regulation 4 repeals the former regulation 9, to remove the prohibition on the holder of stock being described as a trustee, executor or administrator, and substitutes a new regulation 9. The new regulation 9 provides:

•       that Telecom Australia Stock may be inscribed in the name of a person described as a trustee, executor or administrator; and

•       is it to be obliged to enquire as to the propriety of any dealings with the stock.

The proposed amendments will commence on the date of their notification in the Gazette.

The Minute recommends that Regulations be made in the form attached.

Authority:       Section 105 of the Australian Telecommunications Corporation Act 1989