Commonwealth Numbered Regulations - Explanatory Statements

[Index] [Search] [Download] [Related Items] [Help]


BANKS (SHAREHOLDINGS) REGULATIONS (AMENDMENT) 1992 NO. 416

EXPLANATORY STATEMENT

STATUTORY RULES 1992 No. 416

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.

An instrument has been published in the Gazette which fixes a percentage of 100 per cent under subsection 10(4) of the Act for HSBC Holdings BV (BV) in respect of HongkongBank of Australia Limited (the bank).

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

Section 8 of the Act 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 listed in the Schedule to the Principal Regulations, where those interests are deemed to be held by virtue of particular associate relationships. The effect of the proposed amendments to the Principal Regulations would be to disregard for the purposes of the Act, interests in the bank arising from associate relationships with BV and other corporations listed in the Schedule.


[Index] [Related Items] [Search] [Download] [Help]