Commonwealth Numbered Regulations - Explanatory Statements

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AUSTRALIAN WOOL CORPORATION REGULATIONS (AMENDMENT) 1991 NO. 470

STATUTORY RULES 1991 No. 470

Issued by the Authority of the Minister for Primary Industries and Energy

AUSTRALIAN WOOL CORPORATION ACT 1991

Australian Wool Corporation Regulations (Amendment)

Section 94 of the Australian Wool Corporation Act 1991 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.

Under the Act the Australian Wool Corporation (AWC) is required to hold an Annual General Meeting (AGM) of wool-tax payers. Wool-tax payers may register, to enable them to vote at an AGM on motions relating to wool-tax, no confidence in the AWC, and receipt of the financial statements and report of the AWC. The AWC is also able to hold a Special General Meeting (SGM) at any time to enable wool-tax payers to vote on motions relating to wool tax.

Section 40 provides for regulations to be made regarding the procedures to be followed by registered wool-tax payers for the purposes of AGMs and SGMs. Section 47 provides for regulations to be made regarding the procedures to be followed by registered wool-tax payers and the AWC in proposing motions, voting, and other administrative matters related to the running of a general meeting.

The details of the Regulations are as follows:

Clause 1 provides for the amendment of the AWC Regulations.

Clause 2 replaces the interpretation in the previous regulation 3 with extra definitions to assist in interpreting these Regulations.

Clause 3 sets out regulations 5A to 5J. Regulations 5A-5D relate to the establishment and maintenance of a register of wool-tax payers, and regulations 5E-5J relate to procedures to be followed for the purposes of general meetings.

New Regulation 5A provides that the AWC must approve an application form which wool-tax payers must complete when applying to be entered on the register of wooltax payers. Applicants are required to not knowingly provide false or misleading information as the information supplied is used to determine the wool-tax payer's voting entitlement. A penalty of $2,000 has been provided for. This penalty is similar to that applicable in relation to information for the register of levy-payers for the purposes of the Australian Meat and Livestock Corporation's AGM.

New Relation 5B provides that the AWC may establish a register for the purposes of general meetings by adopting the register established in the previous year, this saves the AWC from having to ask wool- tax payers to reapply for entry onto the register every year. The AWC must consider applications for registration but is only able to register an applicant if it is satisfied they are eligible. If an applicant does not appear to be an eligible wool-tax payer, the AWC must either refuse to register them or ask them in writing for information to support their application. The AWC is to advise all successful applicants in writing, of their registration. If the AWC refuses to register an applicant it must advise, in writing, the reasons for the decision. It must advise, that subject to the Administrative Appeals Tribunal Act 1975, an application may be made to the AAT for review, and if appropriate, the person may request a statement under section 28 of that Act.

New Regulation 5C provides for the specific information the AWC must hold on the register. This information includes the name, address, voting entitlement and registration number of the registered wool-tax payer. Up to the end of June 1992, the register must include details of gross wool sale proceeds; the date of each sale; details of supplementary payments received; amount of wool tax paid separately in respect of carpet and non-carpet wool; and the proportions of those taxes paid for promotion, and research and development. This information is required for 1990-91 only, because several changes in wool tax arrangements took place during that financial year. The total rate of wool tax increased effective from 4 October, the rate of tax on carpet wool was reduced on the same date, and a supplementary payments scheme was introduced for sales of wool between 25 February and 30 June under which the supplementary payment was paid net of wool tax. These details are required to calculate the voting entitlement for each applicant for that year. In subsequent years, the register must include details of the amount of wool tax paid separately in respect of carpet wool and non-carpet wool and the proportions of those taxes paid for promotion, and research and development.

New Regulation 5D provides for the manner in which the register of wool-tax payers is to be maintained. The register will close 35 days prior to an AGM, and from the time when the AWC decides to call a SGM. It will reopen at the close of the meeting. The register will be maintained in writing or computerised form. The AWC must alter details on the register if the registered person so requests, and the AWC is satisfied that the alteration is accurate. The AWC must remove a registered person from the register if their details are over 3 years old, or the person is not entitled to remain on the register. If the AWC proposes to delete a registration it must inform the person in writing of the proposal and unless the person can satisfy the AWC's query, their registration will be removed.

If the AWC removes a wool-tax payer from the register, it must inform the person of the reasons for the decision. It must advise that subject to the Administrative Appeals Tribunal Act 1975, an application may be made to the AAT for review, and if appropriate, the person may request a statement under section 28 of that Act. It must also provide the person with the opportunity to apply for registration if they had been deregistered because their details had been more than three years old.

New Regulation 5E requires a wool-tax payer who proposes to move a motion at a general meeting to provide the AWC with a written copy of the motion. A supporting statement of not more than 1000 words and the names of registered wool-tax payers in support of the motion may be included as well. In the case of an AGM the AWC is to be given a copy of the motion no later than 56 days before the meeting.

The motions referred to in this regulation are those to receive the annual financial statement and report of the AWC, recommendations on the rate of wool tax, or motions of no confidence in the AWC. Only motions recommending a rate of wool tax may be moved at an SGM.

New Regulation 5F requires the AWC to give to each registered wool-tax payer at least 28 days before an AGM a notice setting out the time, date and place of the AGM. The text of each motion proposed to be moved, a copy of the last financial statements and annual report, and a copy of an approved proxy form are also to be included.

In the case of SGMs, the AWC is required to give to each registered wool-tax payer at least 14 days before a meeting a copy of an approved proxy form.

New Regulation 5G provides that the Chairperson must approve a form for the appointment of proxies for general meetings. A proxy may be appointed to attend a meeting on behalf of a registered wool-tax payer. The registered person must sign and complete the proxy form, and may instruct the proxy on how to vote. A vote cast by a proxy is only valid if the proxy casts it in accordance with the instructions on the form supplied by the registered person. The form must be lodged with the AWC at least 7 days prior to an AGM or at least 2 days prior to a special general meeting. The proxy may not vote at a meeting if the registered wool-tax payer is also present.

New Regulation 5H provides for the way in which motions are to be put and passed at general meetings. A motion to receive annual financial statements and the report of the AWC at an AGM is passed if a simple majority of registered voters and proxies present agree. This can be carried out by a show of hands or if requested, a formal vote. A motion of no confidence put to an AGM is passed if it receives at least two thirds of the votes eligible to be cast under regulation 51 by registered voters and proxies present at the meeting. A motion relating to recommended rates of wool tax moved by the AWC at a general meeting is passed if it receives at least one third of the votes eligible to be cast under regulation 51 by registered voters and proxies. If the motion was moved other than by the AWC, it is passed if it receives at least two thirds of the votes eligible under regulation 51. Votes relating to motions of no confidence and wool tax rates must be cast by secret ballot.

New Regulation 5I provides for the method of calculating a registered wool-tax payer's voting entitlement at a general meeting. A registered wool-tax payer is entitled to cast 1 vote for each $100 or part thereof which has been recorded under paragraphs 5C(2)(e) and (g) as wool tax and that which would have been paid as the wool tax component of the supplementary payment in the 1990-91 financial year. This applies to a general meeting to be held in the year ending on 30 June 1992 and for the promotion and research and development components of the wool tax. For all subsequent years, a registered wool-tax payer is entitled to cast 1 vote for each $100 or part thereof paid in wool-tax for promotion and research and development, as recorded on the register.

New Regulation 5J provides for an application to be made to the AAT for the review of a decision not to register a person, to remove a person from the register or to not alter a detail on the register.