Commonwealth Consolidated Acts

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Meaning of trustee company and client of trustee company

             (1)  A trustee company is a company:

                     (a)  that is a corporation to which paragraph 51(xx) of the Constitution applies ; and

                     (b)  that is prescribed by the regulations as a trustee company for the purpose of this Act.

             (2)  For the purpose of paragraph (1)(b), companies may (for example) be prescribed:

                     (a)  by setting out a list of companies in the regulations; or

                     (b)  by providing a mechanism in the regulations for the determination of a list of companies.

          (2A)  Before the Governor-General makes a regulation that includes a company in a list set out for the purposes of paragraph (2)(a), the company must satisfy the Minister of the following:

                     (a)  that it is a corporation to which paragraph 51(xx) of the Constitution applies;

                     (b)  that its purposes include:

                              (i)  providing services of the kind referred to in paragraph 601RAC(1)(c); and

                             (ii)  performing functions of a kind referred to in paragraph 601RAC(2)(b) and at least one other estate management function;

                     (c)  that it is, and will continue to be, capable of providing the services, and performing the functions, referred to in paragraph (b) of this subsection;

                     (d)  that it is a fit and proper person;

                     (e)  that an unacceptable control situation (as defined in section 601VAA) does not exist in relation to it in relation to any person;

                      (f)  any other matter the Minister specifies by written notice to the company.

Note:          Under Division 137 of the Criminal Code it may be an offence for a company to provide false or misleading information or documents to the Minister in purported compliance with this requirement.

             (3)  A client of a trustee company is a person to whom, within the meaning of Chapter 7, a financial service (being a traditional trustee company service) is provided by the trustee company.

Note:          Regulations made for the purpose of subsection 766A(1B) may prescribe the person or persons to whom a class of traditional trustee company services is taken to be provided.

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