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NATIONAL HEALTH (REGISTERED HEALTH BENEFITS ORGANIZATIONS) REGULATIONS 2000 2000 NO. 357
EXPLANATORY STATEMENTSTATUTORY RULES 2000 No. 357
Minute No. 43 of 2000 - Minister for Health and Aged Care
Subject: National Health Act 1953
National Health (Registered Health Benefits Organizations) Regulations 2000
Subsection 140(1) of the National Health Act 1953 ('the Act') provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The purpose of the National Health (Registered Health Benefits Organizations) Regulations 2000 (the Regulations) is to make provision for the more effective application of the new prudential regulatory scheme for registered health benefit organizations (registered organizations) and the health benefit funds they conduct.
The Regulations are consequent on, and give effect to, the provisions of the Health Legislation (Amendment) Act (No. 3) 1999 (the Amendment Act') which:
* amended the provisions of the Act relating to the registration of health benefits organizations; and
* introduced substantial amendments of Part VIA of the Act in relation to the investigation, administration and winding up of health benefits funds and registered organizations.
In particular, the Amendment Act introduced a significant new regulatory scheme for the administration of health benefit funds and registered organizations applied in modified form from Part 5.3A of the Corporations Law, and provisions for the winding up of the funds and organizations which give preference to the interests of contributors of the funds. The Act now makes specific provision for the making of regulations to adapt and modify the Corporations Law provisions.
The effect of the Regulations will be to increase certainty and reduce confusion in the application of the new scheme.
The impact of the Regulations will not be significant. They are principally technical and machinery in operation, and apply existing Corporations Law provisions. The Regulations will mainly apply in the event of the existing or imminent insolvency of an organization or a fund and apply principles and rules familiar to the potential administrators and liquidators of those funds or organizations.
To achieve the purpose specified above, the Regulations specify:
* the procedures to become a registered organization;
* the adaptations to be made to the provisions of the Corporations Law relating to the administration and winding up of funds and organizations to reflect the different entities to which the Act applies;
* the modifications of the Corporations Law provisions to govern the holding of meetings of contributors creditors and members in the administration or winding up of a fund or organization;
* the modified procedures to be followed by administrators and liquidators in conducting the administration or winding up of a fund or organization.
* the reporting requirements of administrators and liquidators of funds and organizations to the Private Health Insurance Administration Council.
Details of the Regulations are set out in the Attachment.
The Regulations commence on gazettal.
ATTACHMENT
Details of the Regulations
PART 1 - PRELIMINARY
Regulation 1 - Name of Regulations
Regulation 1 - The regulations may be cited as the National Health (Registered Health Benefits Organizations) Regulations 2000 ("the Regulations").
Regulation 2 - Commencement
Regulation 2 specifies that the Regulations commence on the day of gazettal.
Regulation 3 - Definitions
Regulation 3 contains the definitions and interpretation provisions for the Regulations.
Regulation 4 - Object of Regulations
Regulation 4 sets out the objects of the Regulations as being to support the prudential regulatory provisions of Part VIA of the Act, in particular by modifying the provisions of the Corporations Law and Corporation Regulations applied by the Act to the administration and winding up of health benefits funds and registered organizations.
PART 2 - REGISTRATION OF HEALTH BENEFITS ORGANIZATIONS
Regulation 5 - Application for registration as a registered health benefits organization
Sub-regulation 5(1) provides that an application for registration as a registered organization must be in a form approved in writing by the Council and lodged with the Council.
Sub-regulation 5(2) specified the copies of the instruments, statements, and reports that must accompany the application for registration under sub-regulation 5(1).
Sub-regulation 5(3) sets out the declaration that must be provided by the person signing the application.
Regulation 6 - Additional information for application for registration
Regulation 6 provides that the Council may specify in a written notice the additional information relating to the affairs, finances, rules or conduct of the organization' (or the office of an organization) that has applied for registration under Regulation 5.
PART 3 - FUNDS AND REGISTERED ORGANIZATIONS UNDER ADMINISTRATION
Division 3.1 - Modification of Corporations Law
Regulation 7 - Modifications for paragraph 82XB(2)(b) of the Act
Regulation 7 provides that the modifications under paragraph 82XB(2)(b) of the Act of the applied Corporations Law provisions for the administration of a health benefits fund or a registered organization are set out in Part 1 of Schedule 1.
Regulation 8 - Modifications for paragraph 82XQ(2) of the Act
Regulation 8 provides that the applied section 442F of the Corporations Law under subsection 82XQ(2), modifies sections 128 and 129 of that Law as set out in Part 2 of Schedule 1 of the Regulations.
Division 3.2 - Statement under paragraph 82XZ(3)(b) of the Act of proposed voluntary deed of arrangement
Regulation 9 - Details to be included in proposed voluntary deed of arrangement
Regulation 9 provides that Schedule 2 of the Regulations sets out the particular details under subsection 82XZ(4) that must be included in a statement setting out the details of a proposed voluntary deed of arrangement for a health benefits fund or a registered organization required under paragraph 82XZ(3)(b) of the Act.
Division 3.3 - Regulations under section 82ZF of the Act
Division 3.3 of the Regulations contains provisions for the meetings of a health benefits fund or registered organization under section 82ZF of the Act. The provisions are adapted generally from regulations 5.6.11 to 5.6.36A inclusive of the Corporations Regulations. The principal changes from the Corporation Regulations reflect:
* the fact that contributors to health benefit funds are treated as creditors for the purposes of administration;
* the character of many provisions in Division 3 of Part VIA as applied Corporation Law provisions.
* the fact the Regulations, in addition to applying to registered organizations that are companies, also apply to health benefit funds, and registered organizations that are not companies; and
* that the relevant regulatory authority is the Council, rather than the Australian Securities and Investment Commission.
Regulation 10 - Definitions
Regulation 10 contains the definitions for the purposes of Division 3.3:
* a creditor includes a contributor to a health benefits fund as provided in section 82XY of the Act;
* a reference to a "meeting" is defined by regulation 11.
Regulation 11 - Application
Regulation 11 corresponds to regulation 5.6.11 of the Corporations Regulations and applies the following provisions of the Regulations in Division 3.3 to the convenor and conduct of, and voting at meetings convened under Division 3 or Division 4 of Part VIA that are meetings of.
(a) creditors of a health benefits fund under administration;
(b) creditors and members of a registered organization under administration;
(c) a committee of inspection or creditors under a voluntary deed of arrangement of a health benefits fund or registered organization.
Regulation 12 - Notice of Meeting
Regulation 12 corresponds to Regulation 5.6.12 of the Corporations Regulations, with adaptations.
Subregulation 12(1) provides that the convenor of the meeting must give notice of the meeting to as many of the relevant class of creditors or members as is reasonable practicable.
Subregulation 12(2) specifies the means of delivering or sending the notice:
(i) personally;
(ii) prepaid post at the person's last known address;
(iii) to the person's facsimile number;
(iv) the person's document exchange number.
Subregulation 12(3) requires the notice to be given at least 14 days before the meeting unless the administrator thinks it appropriate to give less notice in the case of a meeting of creditors of a health benefits fund or registered organization (see subregulations 5.6.11(1B) and (1D) of the Corporations Regulations).
The notice of the meeting is required by subregulation 12(4) to be given in accordance with Form 1 in Schedule 4.
In addition to notifying members and creditors, subregulation 12(5) requires the Council to be notified of the meeting at least 7 days before it occurs.
Regulation 13 - Proof of Notice
Regulation 13 corresponds to regulation 5.6.13 of the Corporations Regulations, and provides that a written statement substantially in accordance with Form 530 of the Corporations Regulations is prima facie evidence of the notice having been sent by prepaid post to the person's address.
Regulation 14 - If telephone conference facilities are available
Regulation 14 is based on regulation 5.6.13A of the Corporations Regulations and provides that if teleconference facilities are to be used for a meeting, the meeting notice must:
(i) set out the telephone number for the meeting;
(ii) indicate that the person's or any proxy's or attorneys' telephone and facsimile number must be provided to the convenor;
(iii) indicate that the person, proxy or attorney must pay the costs of the telephone attendance.
Regulation 15 - Persons, or their proxies or attorneys, participating by telephone
Regulation 15 is based on regulation 5.6.13B of the Corporations Regulations and provides that if a person, their proxy or attorney, indicate under Regulation 14 that they wish to attend a meeting by telephone, the convenor must take reasonable steps to ensure that they are contacted before the meeting on the number they provided, and can hear and be heard by telephone (subregulations 15(1) and 15(2)).
Subregulation 15(3) provides that participation in a meeting by telephone is taken to be present in person at that meeting.
Regulation 16 - Time and place of meeting
Regulation 16 is based on regulation 5.6.14 of the Corporations Regulations and provides that the convenor must determine the most convenient time and place of the meeting for the majority of persons entitled to attend.
Regulation 17 - Advertisement of a meeting
Regulation 17 is based on regulation 5.6.14A of the Corporations Regulations and provides that the meeting must be advertised in a daily newspaper circulating in each State or Territory in which the health benefits fund or registered organization carried on business at any time within 2 years before the meeting.
Regulation 18 - Meetings not convened in accordance with regulations
Regulation 18 is based on regulation 5.6.14B of the Corporations Regulations and provides that notwithstanding the regulations, a meeting may be held if all the persons entitled to attend and vote agree.
Regulation 19 - Costs of convening meetings of creditors etc
Regulation 19 is based on regulation 5.6.15 of the Corporations Regulations and provides that a person, other than the administrator, requesting the convening of a meeting must pay the costs of the meeting (and give security for costs if so required by the administrator), unless the Court so orders or a committee of inspection or of creditors otherwise directs.
Regulation 20 - Quorum
Regulation 20 is based on regulation 5.6.16 of the Corporations Regulations and contains the quorum requirements for meetings. Subregulation 20(2) provides that if 1 or 2 persons are entitled to vote, the quorum constitutes those persons and that if more than 2 persons are entitled to vote then the quorum is 2.
Subregulations 20(4)-(7) deal with the circumstances and procedures for adjourned meetings when a quorum is not present.
Regulation 21 - Chairperson
Regulation 21 is based on regulation 5.6.17 of the Corporations Regulations and provides that if the administrator, or a person nominated by him or her is not the chair of the meeting, the persons present and entitled to vote at the meeting must elect one of their number to be the chairperson.
Regulation 22 - Adjournment of Meeting
Regulation 22 is based on regulation 5.6.18 of the Corporations Regulations and provides for the adjournment of meetings by the chairperson at the direction or consent of the meeting, and deals with the time and place of the adjourned meeting.
Regulation 23 - Voting on resolutions
Regulation 23 is based on regulation 5.6.19 of the Corporations Regulations and provides that voting at a meeting is decided on the voices unless a poll is demanded. A poll cannot be demanded in a joint meeting of creditors and members of a registered organization that is a company (subregulation 23(5)).
Regulation 24 - Taking a Poll
Regulation 24 is based on regulation 5.6.20 of the Corporations Regulations and provides that the chairperson of the meeting determines the manner and time of the taking of a poll. An exception is where the poll is demanded on the election of a chairperson or on an adjournment. In that case, the poll is taken at once.
Regulation 25 - Carrying of resolutions after poll has been demanded at a meeting of creditors
Regulation 25 is based on regulation 5.6.21 of the Corporations Regulations, and provides that a resolution is carried on a poll by a majority in number and value of creditors voting.
Regulation 26 - Creditors etc who may vote
Regulation 26 is based on regulation 5.6.23 of the Corporations Regulations and provides that a creditor cannot vote at a meeting of creditors unless particulars, or a formal proof, of the debt or claim have been lodged, or it is admitted wholly or in part by the administrator. A creditor must not vote if the claim or debt is unliquidated or contingent, or its value is not established or justly estimated (subregulation 26(2)).
Regulation 27 - Admission and rejection of proofs for the purposes of voting
Regulation 27 is based on regulation 5.6.26 of the Corporations Regulations and provides that the chairperson may admit or reject a proof of debt or claim. If in doubt, the chairperson may permit a vote subject to it being marked and disallowed later.
A decision to admit or reject a proof may be appealed to the Court within 14 days (subregulation 27(3)).
Regulation 28 - Minutes of Meeting
Regulation 28 is based on regulation 5.6.27 of the Corporations Regulations and deals with the recording, signature and availability of the minutes of meetings. Subregulation 28(3) provides that the chairperson must provide a certified copy of the minutes to the council.
Regulation 29 - Appointment of Proxies
Regulation 29 is based on regulation 5.6.28 of the Corporations Regulations and provides for the notification and appointment of proxies and their entitlement to speak and vote at meetings.
Regulation 30 - Form of proxies
Regulation 30 is based on regulation 5.6.29 of the Corporations Regulations and provides that a proxy is appointed by Form 4 in Schedule 4. Subregulation 30(3) requires that the mark of a person who is blind or incapable of writing must be certified.
Regulation 31 - Proxy forms to accompany notice of meetings
Regulation 31 is based on regulation 5.6.31 of the Corporations Regulations and requires that an uncompleted proxy form accompanies each notice of meetings.
Regulation 32 - Administrator may act as proxy
Regulation 32 is based on regulation 5.6.32 of the Corporations Regulations and provides that a person may appoint the administrator or the chairperson of the meeting as their proxy.
Regulation 33 - Proxy to act as directed
Regulation 33 is based on regulation 5.6.30 of the Corporations Regulations and provides that the appointor may direct the proxy to vote in a particular way.
Regulation 34 - Voting by proxy if financially interested
Regulation 34 is based on regulation 5.6.33 of the Corporations Regulations and provides that a proxy must not vote for any resolution if the proxy (or their partner or employer) would receive remuneration from the assets of the company other than as an ordinary creditor. However, if the proxy-holder holds a special proxy, they must vote according to the proxy.
Regulation 35 - Administrator may appoint deputy
Regulation 35 is based oil regulation 5.6.34 of the Corporations Regulations and provides for an administrator who holds a proxy to appoint a deputy to exercise that proxy in accordance with the administrator's direction, or in accordance with the proxy.
Regulation 36 - Time for lodging proxies
Regulation 36 is based on regulation 5.6.36 of the Corporations Regulations and provides that a proxy and any other document relating to the validity of the appointment must not be required to be received by no more than 48 hours before the meeting.
Regulation 37 - Facsimile copies of proxies
Regulation 37 is based on regulation 5.6.36A of the Corporations Regulations and provides that the original instrument of a facsimile copy of a proxy must be delivered within 72 hours after the facsimile is transmitted, otherwise the Court may declare invalid the meeting or anything done at it.
PART 4 - WINDING UP OF HEALTH BENEFITS ORGANIZATIONS
Regulation 38 - Meeting to vote on proposed voluntary winding up of a registered organization.
Regulation 38 provides that meetings on the proposed voluntary winding up of a registered organization, are to be held under Division 3.3 of Part 3 of the Regulations or as prescribed by the registered organization's constitution.
This provision is based on subsection 495(4) of the Corporations Law.
Regulation 39 - Grounds for application to wind up fund
Regulation 39 provides that a ground to wind up a health benefits fund under paragraph 82YO(1)(d) of the Act is the failure of the fund to execute a deed of arrangement within the tie specified in subsection 444B(2) of the Corporations Law.
Regulation 40 - Grounds for application to wind up registered organization
Regulation 40 provides similarly to regulation 39 in relation to a registered organization for the purposes of paragraph 82YT(1)(d) of the Act.
Regulation 41 - Modifications for subsection 82YZB(1) and (2) of the Act
Regulation 41 provides that the modifications of section 556 for the purposes of the Act are as set out in Schedule 3 of the Regulations.
PART 5 - MISCELLANEOUS
Regulation 42 - Prescribed Forms relating to winding up provisions
Regulation 42 provides that certain prescribed forms are as set out in Schedule 4:
* Form 3 of Schedule 4 contains the final written report of the administrator to the Council for the purpose of subsection 82XZC(1).
* Form 5 of the Schedule 4 contains the form for the purposes of paragraphs 82YH(3)(c) and 82YL(3)(b).
* Form 6 of Schedule 4 contains the instrument of appointment of a liquidator in accordance with subsection 82YH(5).
SCHEDULE 1 - MODIFICATIONS OF APPLIED CORPORATIONS LAW PROVISIONS RELATING TO ADMINISTRATION OF HEALTH BENEFITS ORGANIZATIONS
The scheme of regulation under the Act for the administration of health benefit funds and registered organizations, whether they are companies or entities that are not companies, is applied and adapted from Part 5.3A of the Corporations Law. Accordingly, it is necessary and desirable to modify the operation of the Corporations Law provisions to reflect their application to various types of entities in the context of the Act.
These modifications are made both in the Act and in Schedule 1.
Part 1 - Modifications for paragraph 82XB(2)(b) of the Act
Item 1 - Definitions
Item 1 provides for the definitions to enable the effective application of certain expressions in the applied Corporations Law provisions to the circumstances of the Act.
Item 2 - Subsections 440J(2) and (3)
Item 2 omits subsections 440J(2) and (3) of the Corporations Law as they are not applicable to the Act.
Item 3 - Subsection 441B(2)
Item 3 omits the reference to an inapplicable provision of the Corporations Law and replaces it with the reference to the corresponding provision of the Act, that is section 82XO.
Item 4 - Subsection 441B(3)
Item 4 omits the reference to the inapplicable Corporations Law provision (section 437D) and replaces it with a reference to the appropriate provision, section 82XT of the Act.
Item 5 - Subsection 441C
Item 5 omits section 441C of the Corporations Law as an applied provision because it is inapplicable to the Act.
Item 6 - Section 441E
Item 6 omits the reference to an inapplicable provision of the Corporations Law (section 437C) and replaces it with a reference to the relevant provision of the Act, section 82XO.
Item 7 - Subsection 441F(2)
Item 7 omits a reference to an inapplicable provision of the Corporations Law (section 437Q in applied subsection 441F(2), and replaces it with a reference to the relevant provision of the Act, section 82XO.
Item 8 - Subsection 441F(3)
Item 8 omits a reference to an inapplicable provision of the Corporations Law (section 437D) in applied subsection 441F(3), and replaces it with a reference to the relevant provision of the Act, section 82XT.
Item 9 - Subsection 441G
Item 9 omits an inapplicable provision of the Corporations Law (section 441G).
Item 10 - Section 441J
Item 10 omits a reference to an inapplicable provision of the Corporations Law (section 437Q in applied section 441J, and replaces it with a reference to the relevant provision of the Act, section 82XO.
Item 11 - Subsection 442F(2)
Item 11 omits an inapplicable provision of the Corporations Law (subsection 442F(2)).
Item 12 - Subsection 444A(1)
Item 12 omits a reference to an inapplicable provision of the Corporations Law (section 439A) in applied subsection 444A(1), and replaces it with a reference to the relevant provision of the Act, section 82XZ.
Item 13 - Paragraph 444A(4)(i)
Item 13 makes a drafting change in the applied paragraph 444A(4)(i) of the Corporations Law.
Item 14 - Subsection 444A(4)
Item 14 inserts a new paragraph (j) in the applied Corporations Law provision, subsection 444A(4), requiring that the number of fund contributors and the, total amount owing to contributors be stated.
Item 15 - Subsection 444A(5)
Item 15 omits an inapplicable provision of the Corporations Law (subsection 444A(5)).
Item 16 - Subsection 444B(4)
Item 16 omits a reference to an inapplicable provision (section 437C), in the applied subsection 444B(4), and replaces it with a reference to the relevant provision of the Act, section 82XO.
Item 17 - Subsection 444B(7)
Item 17 omits an inapplicable provision of the Corporations Law (subsection 444B(7)),
Item 18 - Subsection 444C(1)
Item 18 omits a reference to an inapplicable provision of the Corporations Law (section 439A) in the applied subsection 444C(1), and replaces it with a reference to the relevant provision of the Act, section 82XZ.
Item 19 - Subsection 444F(2)
Item 19 omits a reference to an inapplicable provision of the Corporations Law (subsection 441A(3)) in the applied subsection 444F(2).
Item 20 - Section 444G
Item 20 replaces the provisions of applied section 444G of the Corporations Law with a new provision that sets out the entities and persons who are bound by a Deed of Arrangement in respect of a registered organization under administration, and a health benefits fund under administration.
Item 21 - Paragraph 445D(1)(b)
Item 21 omits a reference to an inapplicable provision of the Corporations Law (subsection 439A(4)) in the applied paragraph 445D(1)(b), and replaces it with a reference to the relevant provision of the Act, subsection 82XX(3).
Item 22 - Subsection 445G(1)
Item 22 omits an inapplicable reference to the "Commission" in applied subsection 445G(1), and replaces it with the appropriate reference for the purposes of the Act to the "Council".
Item 23 - Paragraph 447A(4)(e)
Item 23 replaces an inapplicable reference to the "Commission" in the applied paragraph 447A(4)(e) and replaces it with an appropriate reference to the "Council".
Item 24 - Subsection 447E(3)
Item 24 omits an inapplicable reference to the "Commission" in applied subsection 447E(3), and replaces it with an appropriate reference to the "Council".
Item 25 - Subsection 450A(1)
'Item 25 omits references to inapplicable provisions of the Corporations Law (sections 436A, 436B, and 436C) in the applied subsection 450A(1), and replaces those provisions with a reference to the relevant provision of the Act, section 82XD.
Item 26 - Subsection 450A(2)
Item 26 substitutes the inapplicable provisions of applied subsection 450A(2) with a new provision requiring the Council to give notice of the appointment of an administrator under section 82XD of the Act.
Item 27 - Subsection 450A(3)
Item 27 omits references to inapplicable provisions of the Corporations Law (sections 4436A, 436B, and 436C), and replaces those provisions with a reference to the relevant provision of the Act, section 82XD.
Item 28 - Subsection 450A(4).
Item 28 omits an inapplicable provision of the Corporations Law (subsection 450A(4)).
Item 29 - Paragraph 450C(b)
Item 29 inserts a new requirement into applied paragraph 450C(b) of the Corporations Law and requires the prescribed statement to be sent to each contributor.
PART 2 - MODIFICATIONS FOR SUBSECTION 82XQ(2) OF THE ACT
Part 2 contains modifications of sections 128 and 129 of the Corporations Law which deal with the assumptions that can be made by persons dealing with companies, for the purposes of the applied section 442F of the Corporations Law.
The modifications to sections 128 and 129 made by regulations under subsection 82XQ(2) alter references in those applied Corporations Law provisions so that they are capable of being sensibly read under the Act.
Item 30 - Sections 128 and 129
Item 30 is an interpretation provision which inserts new definitions for the purposes of the applied sections 128 and 129 of the Corporations Law, so that a reference in those provisions to:
* a company, means a registered organization; and
* an officer includes, in relation to a registered organization that is a company or a friendly society, a director of that company or society, and in relation to a registered organization that is an incorporated association or an unincorporated entity, a member of the management committee or governing body of the committee, and in the case of the receiver and manager of a registered organization, that receiver.
Item 31 - Section 129
Item 31 is also an interpretation provision for the purposes of the applied section 129 of the Corporations Law, and provides that except for subsections 129(5) and (6) a definition of company secretary and director for the purposes of registered organizations that are companies, friendly societies, incorporated associations or unincorporated entities.
Item 32 - Subsection 129(1)
Item 32 provides that, for the purposes of applied subsection 129(1) of the Corporations Law, "this law" means the applied provisions of the Act.
Item 33 - Subsection 129(2)
Item 33 omits an inappropriate reference to ASIC in applied subsection 129(2).
Item 34 - after Subsection 129(5)
.Item 34 inserts a new subsection 1.29(5A) for the purposes of applied section 129 providing that, with respect to a registered organization that is not a company, a document may be assumed to be duly executed by the organization if it appears to have been signed in accordance with applied subsection 129A(1).
Item 35 - after Subsection 129(6)
Item 35 inserts a new subsection 129(6A) for the purposes of applied section 129 providing that a document of a registered organization that is a friendly society or incorporated association may be assumed to be duly executed if the common seal of the society or association appears to have been affixed in accordance with applied subsection 129A(2) and duly witnessed.
Item 36 - after Section 129
Item 36 inserts a new subsection 129A to provide for the officers of a registered organization that is not a company who may execute a document on behalf of a company without using a common seal.
Schedule 2 - Details to be included in statement of proposed voluntary deed of arrangement
Schedule 2 sets out the additional detailed provisions that are to be included in a statement of a proposed voluntary deed of arrangement for the purposes of paragraph 82X.Z(3)(b) of the Act.
The provisions of Schedule 2 follow and adapt the provisions of schedule 8A of the Corporations Regulations, which contain the prescribed provisions for a deed of company arrangement. The provisions of schedule 8A of the Corporations Regulations have been modified in Schedule 2 so that references to the administrator of a company are altered to the administrator of a registered organization, or a health benefits fund, and certain references to inapplicable provisions of the Corporations Law, have been replaced with appropriate references to the relevant provisions of the Act.
Schedule 3 - Modifications for subsections 82YZB(1) and (2) of the Act
Schedule 3 contains the modifications of section 556 of the Corporations Law applying in the winding up of a health benefits fund or a registered organization, whether that registered organization be a company or other entity. The Regulations also contain those amendments that are necessary and desirable to reflect the policy of the Act to prefer the interests of contributors of the health benefits fund, in the winding up of the fund or the registered organization, and to effect certain other modifications to enable sections 556 to operate in the winding up of a fund or registered organization.
Schedule 4 - Prescribed Forms
PART 1 - ADMINISTRATION OF FUNDS AND REGISTERED ORGANIZATIONS
Schedule 4 contains the prescribed forms for the purposes of the regulations.
Form 1 - Notice of Meeting of Fund or Organization under Administration
Form 1 is based on Form 529 of the Corporations Regulations and provides for the form in which notices to be given to the Council of a meeting of a fund or organization under administration.
Form 2 - Account by Administrator of Fund or Registered Organization
Form 2 is based on Form 508 of the Corporations Regulations and provides for lodging of accounts by the administrator under Item 9 of Schedule 2 of the Regulations.
Form 3 - Administrators Report of Affairs of Fund or Registered Organization
Form 3 is based on Form 509 of the Corporations Regulations and provides for the form of the administrator's report to the Council of the affairs of the registered organization or health benefits fund, and the administrators recommendations to the council under section 82XZC of the Act.
Form 4 - Appointment of Proxy
Form 4 is based on Form 532 of the Corporations Regulations and set out the form of proxy to be given at a meeting under Division 3.3 of Part 3 of the Regulations.
PART 2 - WINDING UP OF FUNDS AND REGISTERED ORGANIZATIONS
Form 5 - Statement of Affairs of Fund or Registered Organization
Form 5 is based on Form 507 of the Corporations Regulations and provides for the liquidators report to the Council setting out the assets and liabilities and property of a health benefits fund or registered organization in winding up.
Form 6 - Appointment of Liquidator
Form 6 is based on Form 504 of the Corporations Regulations and provides for the form in which the liquidator is to notify the Council of his or her appointment.