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Exposure Draft - Corporations Amendment (No 1) Bill 2010

Date:

Thursday, 20 May 2010

Content ID:

1811

Abstract:

On 28 January 2010 the Minister for Financial Services, Superannuation and Corporate Law announced proposed changes to the law to enhance the powers of the Australian Securities and Investments Commission (ASIC).

On 3 February 2010 the Minister released a proposals paper, with reforms designed to increase the protection of vulnerable investors, as well as improving the fee regime for obtaining copies of the member register of a company.

The Corporations Amendment (No 1) Bill 2010 (the Bill) amends the Corporations Act and the Corporations Regulations to change the way people access information kept on company registers.  The measures will:

  • require persons seeking a copy of the register of members to apply to the company, stating the purpose for which they will use the register;
  • provide that where a register is maintained on a computer that it should be able to be inspected on a computer; and
  • provide for the Corporations Regulations to prescribe the formats in which a copy of the register can be provided.

The Bill also amends the Corporations Act and the ASIC Act to:

  • increase the magnitude of criminal penalties that can be imposed for breaches of the insider trading and market manipulation provisions of the Corporations Act;
  • allow for telecommunications interception warrants to be applied for in the course of investigations into those offences;
  • enhance ASIC’s search warrant power to enable ASIC to apply for a search warrant under the ASIC Act without first having to issue a notice to produce the material; and
  • clarify criminal liability in section 1041B of the Corporations Act in accordance with the requirements of the Criminal Code Act 1995 (Criminal Code).

Amendments to the ASIC Regulations will remove provisions that currently provide that a person who makes an off market offer is exempt from the unconscionable conduct provisions where they make certain disclosures.  The Corporations Act will also be amended to clarify the intended application of existing legislation to confirm that off‑market offers to purchase financial products must remain open for at least one month.

Making a submission

Interested parties are invited to comment on the paper. While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment. Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

Closing date for submissions: Thursday, 10 June 2010

Address written submissions to:
Manager
Governance and Insolvency Unit
Corporations and Financial Services Division
The Treasury
Langton Crescent
PARKES ACT 2600

Email: accesstoregisters@treasury.gov.au

For enquiries, please call (02) 6263 3971.

Documents Available:


Acrobat (PDF) documents

 Acrobat (PDF)

Regulations - Access to Share Registers  118.59kb
Regulations - AEVUM Changes  147.81kb
Exposure Draft  66.83kb
Explanatory Memorandum  182.78kb
Commentary  12.06kb

Microsoft Word (RTF) documents

 Microsoft Word (RTF)

Exposure Draft  174.03kb
Explanatory Memorandum  427.22kb
Commentary  13.40kb

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