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This is a Bill, not an Act. For current law, see the Acts databases.


FINANCIAL INSTITUTIONS LEGISLATION AMENDMENT BILL 1997

        Queensland




FINANCIAL INSTITUTIONS
     LEGISLATION
  AMENDMENT BILL 1997

 


 

 

Queensland FINANCIAL INSTITUTIONS LEGISLATION AMENDMENT BILL 1997 TABLE OF PROVISIONS Section Page PART 1--PRELIMINARY 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 PART 2--AMENDMENT OF AFIC CODE 3 Code amended in pt 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 4 Amendment of s 3 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 5 Amendment of s 4 (Interpretation--words etc. used in Financial Institutions Code) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 6 Insertion of new s 8A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 8A Friendly societies legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 7 Amendment of s 9 (Principal object of financial institutions scheme and its achievement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 8 Amendment of s 10 (Principles of supervision) . . . . . . . . . . . . . . . . . . . . . . 14 9 Amendment of s 11 (Role of State supervisory authorities) . . . . . . . . . . . . 14 10 Amendment of s 13 (Financial institutions legislation binds the Crown) . . 14 11 Amendment of s 15 (Functions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 12 Amendment of s 23 (Consultation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 13 Amendment of s 25 (Composition of the Board) . . . . . . . . . . . . . . . . . . . . . 15 14 Amendment of s 36 (Registration of special service providers) . . . . . . . . . 15 15 Amendment of s 45 (Restrictions on making determination) . . . . . . . . . . . 16 16 Insertion of new ss 46A and 46B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 46A Certain applied provisions not effective . . . . . . . . . . . . . . . . . . . . . . 16 46B Limitation on court's power to make order . . . . . . . . . . . . . . . . . . . . 17 17 Replacement of ss 47A and 47B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

 


 

2 Financial Institutions Legislation Amendment 47A Reference to registration of fiscal body's name . . . . . . . . . . . . . . . . 18 47B Fiscal body must have certain words as part of name . . . . . . . . . . . 18 47BA Approval of name for use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 18 Amendment of s 47C (Reservation of names) . . . . . . . . . . . . . . . . . . . . . . . 19 19 Replacement of ss 47E and 47F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 47E End of reservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 47F AFIC may direct change of name or revoke approval of name . . . . 21 20 Amendment of s 48 (Obtaining information from State supervisory authorities) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 21 Amendment of s 52 (Obtaining evidence) . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 22 Amendment of s 55 (Entry and search--monitoring compliance) . . . . . . . . 22 23 Amendment of s 60 (Offence related warrant may be granted by telephone) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 24 Amendment of s 69 (Appointment of members) . . . . . . . . . . . . . . . . . . . . . . 23 25 Amendment of s 111 (Terms and conditions of employment) . . . . . . . . . . . 23 26 Amendment of s 120 (Collection of administration levy) . . . . . . . . . . . . . . 23 27 Amendment of s 121 (Interpretation--meaning of "required minimum number of directors") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 28 Replacement of s 133 (Public Service Management and Employment Act of Queensland not to apply) . . . . . . . . . . . . . . . . . . . . . . . 23 133 Directors appointed under Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 29 Replacement of s 144 (Public Service Management and Employment Act of Queensland not to apply) . . . . . . . . . . . . . . . . . . . . . . . 24 144 Executive director appointed under Code . . . . . . . . . . . . . . . . . . . . . 24 30 Amendment of s 153 (Terms and conditions of employment) . . . . . . . . . . . 24 31 Replacement of s 155 (Secrecy) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 155 Secrecy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 32 Amendment of s 157 (Directors and employees to act honestly etc.) . . . . . 26 33 Amendment of s 164 (Delegation of Board's powers) . . . . . . . . . . . . . . . . . 26 34 Amendment for `financial institution' and `financial institutions' . . . . . . . . 27 PART 3--AMENDMENT OF AUSTRALIAN FINANCIAL INSTITUTIONS COMMISSION ACT 1992 35 Act amended in pt 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 36 Amendment of s 11 (Interpretation of some expressions in the AFIC (Queensland) Code and the AFIC (Queensland) Regulations) . . . . . 27

 


 

3 Financial Institutions Legislation Amendment PART 4--AMENDMENT OF FINANCIAL INSTITUTIONS CODE 37 Code amended in pt 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 38 Amendment of s 3 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 39 Amendment of s 65 (Corporations Law applying under its own force) . . . . 28 40 Amendment of s 66 (Functions of SSA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 41 Amendment of s 71 (Public office of SSA and inspection of documents) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 42 Insertion of new ss 71A to 71F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 71A Reproductions and transparencies . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 71B Records kept by devices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 71C Material given in written form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 71D Certified copies etc. are evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 71E Obtaining information from certain document registers . . . . . . . . . . 31 71F Use in a proceeding of information from SSA database . . . . . . . . . . 32 43 Amendment of pt 2, div 2 (Specific powers) . . . . . . . . . . . . . . . . . . . . . . . . 32 Subdivision 1--Services corporations 74A SSA may declare body as services corporation . . . . . . . . . . . . . . . . 32 74B Societies may subscribe for shares in services corporations . . . . . . 33 74C Applications for approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 74D Persons dealing with societies contravening s 74B(2) . . . . . . . . . . . 34 44 Amendment of s 76 (Obtaining evidence) . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 45 Amendment of s 84 (Offence related warrant may be granted by telephone) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 46 Amendment of s 90 (Appointment of administrator) . . . . . . . . . . . . . . . . . . 35 47 Insertion of new s 91A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 91A Rules of society after s 91 no longer applies . . . . . . . . . . . . . . . . . . . 35 48 Amendment of s 94 (Supervision Fund) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 49 Amendment of s 97 (Credit Unions Contingency Fund) . . . . . . . . . . . . . . . 36 50 Amendment of s 98 (Contributions by credit unions) . . . . . . . . . . . . . . . . . . 36 51 Insertion of new s 99A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 99A Distribution of retained earnings of Credit Unions Contingency Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 52 Amendment of s 105D (Consequences of entering into contingency fund agreement) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

 


 

4 Financial Institutions Legislation Amendment 53 Amendment of s 106 (Restriction on initial advertisements) . . . . . . . . . . . 38 54 Amendment of s 112 (Level of assets of building society associated with primary objects) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 55 Amendment of s 115 (Registration) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 56 Insertion of new pt 4, div 1A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Division 1A--Formation and registration of building society for approved holder 115A Application of division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 115B Registration of building society as wholly owned society . . . . . . . . 40 115C Offence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Division 1B--Incorporation 57 Amendment of s 116 (Certificate of incorporation) . . . . . . . . . . . . . . . . . . . 42 58 Amendment of s 117 (Effect of incorporation) . . . . . . . . . . . . . . . . . . . . . . . 43 59 Amendment of pt 4, div 2 (Powers) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Division 2--Legal capacity and powers 117A Interpretation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 117B Purpose of sections 118 and 119 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 60 Amendment of s 118 (Powers of societies) . . . . . . . . . . . . . . . . . . . . . . . . . . 44 61 Replacement of s 119 (Acquisition of shares in services corporation) . . . . 44 119 Restrictions on societies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 119A Persons having dealings with societies . . . . . . . . . . . . . . . . . . . . . . . 45 119B Constructive notice not presumed . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 62 Amendment of s 120 (Control of certain financial transactions) . . . . . . . . . 48 63 Insertion of new s 121A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 121A Purchase of overseas plant and equipment . . . . . . . . . . . . . . . . . . . . 48 64 Amendment of s 122 (Rules) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 65 Omission of s 123 (Model rules) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 66 Replacement of s 127 (Alteration of rules by board of directors) . . . . . . . . 49 127 Alteration of rules by board of directors . . . . . . . . . . . . . . . . . . . . . . . 49 67 Amendment of s 133 (Joint members) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 68 Replacement of s 138A (Dormant accounts) . . . . . . . . . . . . . . . . . . . . . . . . 50 138A Dormant accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 69 Amendment of s 139 (Name) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

 


 

5 Financial Institutions Legislation Amendment 70 Amendment of s 140 (Abbreviations etc. of society's name) . . . . . . . . . . . 53 71 Amendment of s 144 (Use of words `building society', `credit society', `credit union' or `credit co-operative') . . . . . . . . . . . . . . . . . . . . . . 53 72 Insertion of new s 144A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 144A Unregistered society not to trade or carry on business . . . . . . . . . . . 53 73 Amendment of 145 (Publication of name) . . . . . . . . . . . . . . . . . . . . . . . . . . 54 74 Amendment of s 159 (Conversion of withdrawable share capital to deposits) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 75 Insertion of new section 159A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 159A Conversion of shares to deposits (by direction) . . . . . . . . . . . . . . . . 56 76 Replacement of s 160 (Withdrawable shares to rank equally with deposits on winding-up) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 160 Withdrawable shares to rank equally with deposits on winding-up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 77 Replacement of s 161 (Charge on withdrawable shares or deposit account) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 161 Charge on withdrawable shares or deposit account . . . . . . . . . . . . . 57 78 Amendment of s 173 (Sale of permanent shares forfeited for non-payment of call) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 79 Amendment of s 184 (Application of certain provisions of Code to redeemable preference shares) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 80 Amendment of s 234 (Election or appointment of directors) . . . . . . . . . . . . 59 81 Amendment of s 238 (Qualifications of directors) . . . . . . . . . . . . . . . . . . . . 60 82 Amendment of s 239 (Vacation of office) . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 83 Amendment of s 240 (Declaration of interest) . . . . . . . . . . . . . . . . . . . . . . . 60 84 Amendment of s 243 (Financial accommodation to directors and associates) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 85 Insertion of new s 244A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 244A Society not to indemnify director . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 86 Amendment of s 254 (Proxy votes) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 87 Amendment of s 255 (Special resolutions) . . . . . . . . . . . . . . . . . . . . . . . . . . 63 88 Amendment of s 258 (Register of directors etc.) . . . . . . . . . . . . . . . . . . . . . 63 89 Amendment of s 259 (Register of members) . . . . . . . . . . . . . . . . . . . . . . . . . 64 90 Amendment of s 260 (Register of holders of permanent shares) . . . . . . . . . 64 91 Amendment of s 274 (Directors' reports) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

 


 

6 Financial Institutions Legislation Amendment 92 Amendment of s 278 (Qualifications of auditors) . . . . . . . . . . . . . . . . . . . . . 65 93 Amendment of s 279 (Appointment of auditors) . . . . . . . . . . . . . . . . . . . . . . 65 94 Amendment of s 280 (Nomination of auditors) . . . . . . . . . . . . . . . . . . . . . . . 65 95 Amendment of s 281 (Removal and resignation of auditors) . . . . . . . . . . . . 66 96 Amendment of s 291A (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 97 Amendment of s 293 (Application for registration of merger or transfer of engagements between societies of the same type) . . . . . . . . . . . 66 98 Amendment of s 298 (Certificate of confirmation (transfer by direction)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 99 Replacement of s 298B (When transfer of engagements takes effect) . . . . 67 298B When transfer of engagements takes effect . . . . . . . . . . . . . . . . . . . . 67 100 Amendment of s 300 (Effect of transfer of engagements) . . . . . . . . . . . . . . 67 101 Amendment of s 302 (Application for registration of merger or transfer of engagements between societies of different types) . . . . . . . . . . 67 102 Amendment of s 302A (Cancellation of building society's permanent shares) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 103 Amendment of s 307 (Certificate of confirmation (transfer by direction)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 104 Replacement of s 307B (When transfer of engagements takes effect) . . . . 68 307B When transfer of engagements takes effect . . . . . . . . . . . . . . . . . . . . 68 105 Replacement of pt 7, div 3 (Mergers and transfers of engagements involving foreign societies) . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Division 3--Mergers and transfers of engagements involving foreign societies 309 Definitions for div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 310 Proposal for merger or transfer of engagements . . . . . . . . . . . . . . . . 69 311 SSA may register merged society . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 312 Certificate of confirmation for total transfer . . . . . . . . . . . . . . . . . . . 73 313 Certificate of confirmation for partial transfer . . . . . . . . . . . . . . . . . . 74 314 When transfer of engagements takes effect . . . . . . . . . . . . . . . . . . . . 74 315 Effect of merger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 316 Effect of transfer of engagements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 316A Surrender of certificate of incorporation . . . . . . . . . . . . . . . . . . . . . . 76

 


 

7 Financial Institutions Legislation Amendment Division 3A--Effect of mergers and transfers of engagements involving only foreign societies 316B Definitions for div 3A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 316C Effect of merger of foreign societies . . . . . . . . . . . . . . . . . . . . . . . . . 77 316D Effect of transfer of engagements between foreign societies . . . . . . 78 106 Amendment of s 337 (Schemes of arrangement and reconstruction) . . . . . 80 107 Omission of pt 9, div 3 (Official management) . . . . . . . . . . . . . . . . . . . . . . 80 108 Amendment of s 341 (Winding-up on certificate of SSA) . . . . . . . . . . . . . . 80 109 Amendment of s 342 (Application of Corporations Law to winding-up) . . . 80 110 Amendment of s 352 (Self-incrimination) . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 111 Amendment of s 364 (Registration) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 112 Insertion of new ss 364A-364E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 364A Agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 364B End of appointment of foreign societies' agents . . . . . . . . . . . . . . . . 83 364C Liability of agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 364D Office of foreign society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 364E Service of documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 113 Amendment of s 366 (SSA to be notified of certain changes) . . . . . . . . . . 84 114 Omission of s 367 (Balance sheets) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 115 Amendment of s 369 (Society proposing to register as foreign society) . . . 85 116 Insertion of new s 369A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 369A SSA to provide certain documents . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 117 Amendment of s 374 (Effect of incorporation) . . . . . . . . . . . . . . . . . . . . . . . 85 118 Amendment of s 379 (Reviewable decisions) . . . . . . . . . . . . . . . . . . . . . . . . 86 119 Amendment of s 382 (SSA to review certain decisions) . . . . . . . . . . . . . . . 86 120 Replacement of s 410 (Secrecy) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 410 Secrecy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 121 Amendment of s 411 (Powers about money of members who have died) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 122 Omission of ss 412-413 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 123 Omission of schs 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

 


 

8 Financial Institutions Legislation Amendment PART 5--AMENDMENT OF FINANCIAL INSTITUTIONS (QUEENSLAND) ACT 1992 124 Act amended in pt 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 125 Amendment of s 6 (Interpretation of some expressions in the Financial Institutions (Queensland) Code and the Financial Institutions (Queensland) Regulations) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 126 Amendment of s 22 (Amount credited to Credit Societies Guarantee Fund) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 PART 6--AMENDMENT OF PUBLIC SERVICE ACT 1996 127 Act amended in pt 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 128 Amendment of sch 2 (Amendments) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 SCHEDULE . . . . . . . . . . . . . . . . . . . . . . . . . 91 AMENDMENTS FOR `FINANCIAL INSTITUTION' AND `FINANCIAL INSTITUTIONS'

 


 

1997 A BILL FOR An Act to amend the AFIC Code, the Australian Financial Institutions Commission Act 1992, the Financial Institutions Code and the Financial Institutions (Queensland) Act 1992 and for another purpose

 


 

s1 10 s4 Financial Institutions Legislation Amendment The Parliament of Queensland enacts-- 1 PART 1--PRELIMINARY 2 title 3 Short Clause 1. This Act may be cited as the Financial Institutions Legislation 4 Amendment Act 1997. 5 6 Commencement Clause 2.(1) Subject to subsection (2) and (3), this Act commences on a day to 7 be fixed by proclamation. 8 (2) Part 5 (other than section 125) is taken to have commenced on the 9 day the Financial Institutions (Queensland) Act 1992 commenced. 10 (3) Section 51 commences on the date of assent. 11 ART 2--AMENDMENT OF AFIC CODE 12 P amended in pt 2 13 Code Clause 3. This part amends the AFIC Code set out in the Australian Financial 14 Institutions Commission Act 1992, section 21. 15 of s 3 (Definitions) 16 Amendment Clause 4.(1) Section 3, definition "State supervisory authority"-- 17 omit. 18 (2) Section 3-- 19 insert-- 20

 


 

s4 11 s4 Financial Institutions Legislation Amendment ` "ASC" means the Australian Securities Commission. 1 "COFS" means the coordinating body known as the Council of Financial 2 Supervisors. 3 "fiscal bodies legislation" means-- 4 (a) the financial institutions legislation; and 5 (b) the friendly societies legislation. 6 "fiscal body" means-- 7 (a) a financial institution; or 8 (b) a friendly institution. 9 "friendly association" means a body formed by friendly societies and 10 registered under the friendly societies legislation as an association. 11 "friendly institution" means-- 12 (a) a friendly society; or 13 (b) a friendly association. 14 "friendly societies legislation" has the meaning given by section 8A. 15 "friendly society" means a body that is registered under the friendly 16 societies legislation as a society. 17 "ISC" means the Insurance and Superannuation Commissioner under the 18 Insurance and Superannuation Commissioner Act 1987 of the 19 Commonwealth. 20 "PHIAC" means the Private Health Insurance Administration Council 21 under the National Health Act 1953 of the Commonwealth. 22 "RBA" means the Reserve Bank of Australia. 23 "State supervisory authority", in relation to a State, means-- 24 (a) to the extent that a provision of this Code in which the expression 25 appears applies, or is applied, to a financial body--the person or 26 body declared by the financial institutions legislation of the State 27 to be the State supervisory authority for the State; and 28 (b) to the extent that a provision of this Code in which the expression 29 appears applies, or is applied, to a friendly institution--the person 30 or body declared by the friendly societies legislation of the State 31

 


 

s5 12 s6 Financial Institutions Legislation Amendment to be the State supervisory authority for the State.'. 1 (3) Section 3, definition "association", after `means'-- 2 insert-- 3 `(other than in the definition "friendly association")'. 4 (4) Section 3, definition "prudential standard"-- 5 insert-- 6 `(xvi)disclosure documents; or'. 7 (5) Section 3, definition "society", after `means'-- 8 insert-- 9 `(other than in the definition "friendly society")'. 10 of s 4 (Interpretation--words etc. used in Financial 11 Amendment Institutions Code) 12 Clause 5. Section 4, after `Financial Institutions Code'-- 13 insert-- 14 `or Friendly Societies Code'. 15 of new s 8A 16 Insertion Clause 6. After section 8-- 17 insert-- 18 societies legislation 19 `Friendly `8A. The friendly societies legislation consists of-- 20 (a) the friendly societies legislation of Victoria, namely-- 21 (i) the Friendly Societies (Victoria) Act 1996 of Victoria and the 22 Friendly Societies Code set out in schedule 1 of the Act; and 23 (ii) regulations made under the Act; and 24 (b) the friendly societies legislation of the other participating States, 25 namely-- 26

 


 

s7 13 s7 Financial Institutions Legislation Amendment (i) the Acts and regulations of the other participating States that 1 apply, complement or otherwise give effect to any part of the 2 friendly societies legislation of Victoria; and 3 (ii) the friendly societies legislation of Victoria as applying in 4 those States; and 5 (c) the financial institutions legislation in so far as it applies or is 6 otherwise relevant to the legislation mentioned in paragraph (a) or 7 (b).'. 8 of s 9 (Principal object of financial institutions scheme 9 Amendment and its achievement) 10 Clause 7.(1) Section 9(1)(b)-- 11 omit, insert-- 12 `(b) to protect the interests of depositors with societies; and 13 (c) to protect the interests of members and prospective members of 14 friendly society benefit funds.'. 15 (2) Section 9(2)(a), `a system'-- 16 omit, insert-- 17 `systems'. 18 (3) Section 9(2)(h)-- 19 omit, insert-- 20 `(h) establishing the Australian Financial Institutions Commission to 21 institute, develop and ensure the effective and efficient 22 implementation of, uniform systems of prudential and other 23 standards for, and for the supervision of, fiscal bodies; and'. 24 (4) Section 9(2)(i), `that uniform system'-- 25 omit, insert-- 26 `the uniform systems'. 27 (5) Section 9(2)(l)-- 28 omit, insert-- 29

 


 

s8 14 s 10 Financial Institutions Legislation Amendment `(l) obtaining for, and for the ongoing implementation of, the 1 financial institutions scheme, the cooperation of the 2 Commonwealth and of the following entities-- 3 (i) ASC; 4 (ii) COFS; 5 (iii) ISC; 6 (iv) PHIAC; 7 (v) RBA.'. 8 of s 10 (Principles of supervision) 9 Amendment Clause 8. Section 10(1)(a) and (g), `Financial institutions'-- 10 omit, insert-- 11 `Fiscal bodies'. 12 of s 11 (Role of State supervisory authorities) 13 Amendment Clause 9.(1) Section 11(a), after `financial bodies'-- 14 insert-- 15 `and friendly institutions'. 16 (2) Section 11(d), after `societies'-- 17 insert-- 18 `and of members of friendly society benefit funds'. 19 of s 13 (Financial institutions legislation binds the 20 Amendment Crown) 21 Clause 10. Section 13, heading, `Financial institutions'-- 22 omit, insert-- 23 `Fiscal bodies'. 24

 


 

s 11 15 s 14 Financial Institutions Legislation Amendment of s 15 (Functions) 1 Amendment Clause 11.(1) Section 15(b), `a system'-- 2 omit, insert-- 3 `systems'. 4 (2) Section 15(b), `that is'-- 5 omit, insert-- 6 `that are'. 7 of s 23 (Consultation) 8 Amendment Clause 12. Section 23, `consult with' to `financial institutions.'-- 9 omit, insert-- 10 `consult with the Commonwealth, State supervisory authorities, industry 11 bodies and fiscal bodies, and also with the following entities-- 12 (a) ASC; 13 (b) COFS; 14 (c) ISC; 15 (d) PHIAC; 16 (e) RBA.'. 17 of s 25 (Composition of the Board) 18 Amendment Clause 13.(1) Section 25, `8'-- 19 omit. 20 (2) Section 25(d)-- 21 omit, insert-- 22 `(d) up to 6 other directors.'. 23 of s 36 (Registration of special service providers) 24 Amendment Clause 14. Section 36(2)(b), from `and such' to `AFIC; and'-- 25

 


 

s 15 16 s 16 Financial Institutions Legislation Amendment omit, insert-- 1 `(vi) services approved in writing for the body by AFIC, whether 2 before or after registration; and'. 3 of s 45 (Restrictions on making determination) 4 Amendment Clause 15.(1) Section 45(2), from `as, subject' to `is solvent'-- 5 omit, insert-- 6 `as it considers appropriate, that the value of the borrowing society's 7 assets is greater than the value of its liabilities'. 8 (2) Section 45(3)-- 9 omit. 10 (3) Section 45(4)-- 11 renumber as section 45(3). 12 of new ss 46A and 46B 13 Insertion Clause 16. After section 46-- 14 insert-- 15 applied provisions not effective 16 `Certain `46A.(1) This section applies to the extent that, because of an applied 17 provision, a charge on property of, or a liquidity support loan made to, a 18 borrowing society would otherwise be void or voidable, either generally or 19 as against a particular person. 20 `(2) To that extent, the applied provision is ineffective. 21 `(3) In this section-- 22 "a charge on property of a borrowing society" means a charge given, or 23 available, as security over property of the society in relation to a 24 liquidity support loan made to the society. 25 "applied provision" means-- 26 (a) for a charge on property of a borrowing society-- 27 (i) the Corporations Law, section 266 or 267, as applying under 28

 


 

s 16 17 s 16 Financial Institutions Legislation Amendment the Financial Institutions Code, section 227;1 or 1 (ii) the Corporations Law, section 588FJ, as applying under the 2 Financial Institutions Code, section 342;2 or 3 (b) for a charge on property of, or a liquidity support loan made to, a 4 borrowing society--the Corporations Law, section 588FE, as 5 applying under the Financial Institutions Code, section 342. 6 "liquidity support loan", in relation to a borrowing society, means a loan 7 made to the society for the purposes of liquidity support consequent on 8 a determination of the Board under section 44. 9 on court's power to make order 10 `Limitation `46B.(1) If, because of section 46A, a transaction that would otherwise 11 be voidable because of section 588FE is not voidable, a court cannot be 12 satisfied, for the purposes of section 588FF, that the transaction is voidable. 13 `(2) This section is to remove doubt. 14 `(3) In this section-- 15 "section 588FE" means that section of the Corporations Law as applying 16 under the Financial Institutions Code, section 342. 17 "section 588FF" means that section of the Corporations Law as applying 18 under the Financial Institutions Code, section 342.'. 19 1 This section of the Financial Institutions Code applies the Corporations Law, part 3.5 (Charges) to societies with all necessary and prescribed modifications. 2 This section of the Financial Institutions Code applies the following provisions of the Corporations Law, with all necessary and prescribed modifications, to the winding-up or dissolution of a society or to a defunct or dissolved society-- part 5.4 (Winding up in insolvency) part 5.4A (Winding up by the Court on other grounds) part 5.4B (Winding up in insolvency or by the Court) part 5.5 (Voluntary winding up) part 5.6 (Winding up generally) part 5.7B (Recovering property or compensation for the benefit of creditors of insolvent company) (other than section 588G) part 5.9 (Miscellaneous)

 


 

s 17 18 s 17 Financial Institutions Legislation Amendment of ss 47A and 47B 1 Replacement Clause 17. Sections 47A and 47B-- 2 omit, insert-- 3 to registration of fiscal body's name 4 `Reference `47A. In this part, a reference to registration of a fiscal body's name is a 5 reference to-- 6 (a) if the fiscal body is a financial body--registration by the SSA, 7 under the Financial Institutions Code, of-- 8 (i) a financial body's rules containing the name; or 9 (ii) an alteration of a financial body's rules to contain the name; 10 or 11 (b) if the fiscal body is a friendly institution--registration by the 12 SSA, under the Friendly Societies Code, of-- 13 (i) a friendly institution's rules containing the name; or 14 (ii) an alteration of a friendly institution's rules to contain the 15 name; or 16 (c) if the fiscal body is a special services provider--registration by 17 AFIC, under this Code, of-- 18 (i) a special services provider's rules containing the name; or 19 (ii) an alteration of a special services provider's rules to contain 20 the name. 21 body must have certain words as part of name 22 `Fiscal `47B.(1) The name of a building society must include the words 23 `building society' as part of its name. 24 `(2) The name of a credit union must include the words `credit union', 25 `credit society' or `credit co-operative' as part of its name. 26 `(3) The name of a friendly society must include the words `friendly 27 society' as part of its name. 28 `(4) The name of a fiscal body must include the word `Limited' or the 29 abbreviation `Ltd.' at the end of its name. 30

 


 

s 18 19 s 18 Financial Institutions Legislation Amendment of name for use 1 `Approval `47BA.(1) AFIC may, on application by a fiscal body, approve the use 2 by the fiscal body of a name other than its registered name subject to the 3 conditions AFIC decides. 4 `(2) However, AFIC may give approval under subsection (1) only if-- 5 (a) it first consults with the State supervisory authority with which 6 the fiscal body's rules are registered; and 7 (b) the name the fiscal body wishes to use is reserved for the fiscal 8 body by AFIC under this part. 9 `(3) AFIC may, by written notice given to a fiscal body, revoke an 10 approval given to the fiscal body under subsection (1) or vary or revoke 11 conditions to which it is subject. 12 `(4) If, other than in relation to a special services provider, AFIC gives an 13 approval under subsection (1), revokes an approval under subsection (3) or 14 varies or revokes conditions to which an approval is subject, AFIC must, as 15 soon as practicable, notify each State supervisory authority of the approval, 16 revocation or variation. 17 `(5) A fiscal body must comply with the conditions of an approval under 18 subsection (1). 19 `Maximum penalty--$75 000. 20 `(6) An approval given under the Financial Institutions Code, 21 section 139(5) (Name) before the commencement of this section, and still 22 in force immediately before the commencement, is taken, for all purposes 23 under the financial institutions legislation, to be an approval given under 24 subsection (1). 25 `(7) Subsection (2)(a) does not apply if the applicant under subsection (1) 26 is a special services provider.'. 27 of s 47C (Reservation of names) 28 Amendment Clause 18.(1) Section 47C(1)(c) and (d)-- 29 omit, insert-- 30 `(c) the name under which a society proposes to carry on business as 31 a foreign society under the Financial Institutions Code; or 32

 


 

s 19 20 s 19 Financial Institutions Legislation Amendment (d) the name under which a friendly society proposes to carry on 1 business as a foreign society under the Friendly Societies Code; 2 or 3 (e) a name, other than its registered name, a fiscal body proposes to 4 use if approved under section 47BA (Approval of name for 5 use).'. 6 (2) Section 47C(3)(c)-- 7 omit, insert-- 8 `(c) has been approved for use by another fiscal body under 9 section 47BA (Approval of name for use) or the corresponding 10 provision of the fiscal bodies legislation of another participating 11 State; or'. 12 (3) Section 47C(3)(g)-- 13 omit, insert-- 14 `(g) does not comply with section 47B (Fiscal body must have certain 15 words as part of name); or'. 16 (4) Section 47C(5)-- 17 omit. 18 of ss 47E and 47F 19 Replacement Clause 19. Sections 47E and 47F-- 20 omit, insert-- 21 of reservation 22 `End `47E. A name stops being reserved for a fiscal body or proposed fiscal 23 body when-- 24 (a) under the fiscal bodies legislation, the name becomes the 25 registered name of the fiscal body; or 26 (b) the name is approved for use under section 47BA (Approval of 27 name for use) or the corresponding provision of the fiscal bodies 28 legislation of another participating State; or 29 (c) AFIC cancels the reservation of the name at the request of the 30

 


 

s 19 21 s 19 Financial Institutions Legislation Amendment person who applied for reservation; or 1 (d) the period (or extended period) of reservation ends. 2 may direct change of name or revoke approval of name 3 `AFIC `47F.(1) If, through inadvertence or otherwise, the circumstances 4 mentioned in subsection (2) arise, AFIC may-- 5 (a) direct a fiscal body to change its name; or 6 (b) revoke an approval given to a fiscal body under section 47BA 7 (Approval of name for use). 8 `(2) The circumstances are that AFIC is satisfied that the fiscal body's 9 name, or a name approved for use by the fiscal body under section 47BA, 10 is likely to be confused with-- 11 (a) a name approved for use by another fiscal body under 12 section 47BA or the corresponding provision of the fiscal bodies 13 legislation of another participating State; or 14 (b) another fiscal body's name; or 15 (c) a body corporate's name; or 16 (d) a name on the national business names register. 17 `(3) A fiscal body must comply with a direction under subsection (1). 18 Maximum penalty--$25 000. 19 `(4) A direction under subsection (1) may state that it is to be 20 implemented-- 21 (a) immediately; or 22 (b) if AFIC considers a staged implementation is reasonable in the 23 circumstances of the direction or revocation--in the way directed 24 by AFIC. 25 `(5) A revocation under subsection (1) may be expressed to have 26 effect-- 27 (a) immediately; or 28 (b) if AFIC considers that, in the circumstances, the revocation 29 should have effect from a later time--a later time. 30

 


 

s 20 22 s 23 Financial Institutions Legislation Amendment `(6) In subsection (2)(a) and (b)-- 1 "fiscal body" includes a fiscal body under the fiscal bodies legislation of 2 another participating State.'. 3 of s 48 (Obtaining information from State supervisory 4 Amendment authorities) 5 Clause 20. Section 48(2), after `financial body'-- 6 insert-- 7 `or friendly institution'. 8 of s 52 (Obtaining evidence) 9 Amendment Clause 21.(1) Section 52(9), `Neither an'-- 10 omit, insert-- 11 `An'. 12 (2) Section 52(9), `, nor any information' to `the answer, is'-- 13 omit, insert-- 14 `is not'. 15 of s 55 (Entry and search--monitoring compliance) 16 Amendment Clause 22. Section 55(2)(c), after `auditor's'-- 17 insert-- 18 `or actuary's'. 19 of s 60 (Offence related warrant may be granted by 20 Amendment telephone) 21 Clause 23. Section 60(2), `an'-- 22 omit. 23

 


 

s 24 23 s 28 Financial Institutions Legislation Amendment of s 69 (Appointment of members) 1 Amendment Clause 24. Section 69(3)-- 2 omit, insert-- 3 `(3) The members are to be appointed under this Code, and not under the 4 Public Service Act 1996 of Queensland.'. 5 of s 111 (Terms and conditions of employment) 6 Amendment Clause 25. Section 111(2)-- 7 omit, insert-- 8 `(2) The Appeal Tribunal's employees are to be employed under this 9 Code, and not under the Public Service Act 1996 of Queensland.'. 10 of s 120 (Collection of administration levy) 11 Amendment Clause 26. Section 120(6), `society'-- 12 omit, insert-- 13 `body'. 14 of s 121 (Interpretation--meaning of "required 15 Amendment minimum number of directors") 16 Clause 27. Section 121, definition "required minimum number of directors", 17 paragraph (a), `8'-- 18 omit, insert-- 19 `8 or 9'. 20 of s 133 (Public Service Management and Employment 21 Replacement Act of Queensland not to apply) 22 Clause 28. Section 133-- 23 omit, insert-- 24

 


 

s 29 24 s 31 Financial Institutions Legislation Amendment appointed under Code 1 `Directors `133. A director is to be appointed under this Code, and not under the 2 Public Service Act 1996 of Queensland.'. 3 of s 144 (Public Service Management and Employment 4 Replacement Act of Queensland not to apply) 5 Clause 29. Section 144-- 6 omit, insert-- 7 director appointed under Code 8 `Executive `144. The executive director is to be appointed under this Code, and not 9 under the Public Service Act 1996 of Queensland.'. 10 of s 153 (Terms and conditions of employment) 11 Amendment Clause 30. Section 153(2)-- 12 omit, insert-- 13 `(2) AFIC's employees are to be employed under this Code, and not 14 under the Public Service Act 1996 of Queensland.'. 15 of s 155 (Secrecy) 16 Replacement Clause 31. Section 155-- 17 omit, insert-- 18 19 `Secrecy `155.(1) In this section-- 20 "court" includes a tribunal, authority or person having the power lawfully 21 to require the production of documents or the answering of questions. 22 "financial sector supervisory agency" means a person or body prescribed 23 by regulation to be a financial sector supervisory agency for this 24 section. 25 "Government agency" means an agency of the State or the 26 Commonwealth, and includes a body prescribed by regulation to be an 27

 


 

s 31 25 s 31 Financial Institutions Legislation Amendment agency of a State or the Commonwealth. 1 "law enforcement agency" means a body prescribed by regulation to be a 2 law enforcement agency for the purposes of this section. 3 "protected document" means a document that-- 4 (a) contains information that concerns a person; and 5 (b) is obtained or made by a person to whom this section applies in 6 the course of, or because of, the person's duties under or in 7 relation to the fiscal bodies legislation. 8 "protected information" means information that-- 9 (a) concerns a person; and 10 (b) is disclosed to, or obtained by, a person to whom this section 11 applies in the course of, or because of, the person's duties under 12 or in relation to the fiscal bodies legislation. 13 `(2) This section applies to a director, and to a person who is or has been 14 appointed or employed by AFIC for the purposes of carrying out any duties 15 under the fiscal bodies legislation. 16 `(3) A person to whom this section applies must not-- 17 (a) make a record of protected information; or 18 (b) whether directly or indirectly, disclose to a person protected 19 information concerning another person; 20 unless the record is made, or the information disclosed-- 21 (c) under or for the purposes of the fiscal bodies legislation; or 22 (d) in the performance of duties, as a person to whom this 23 section applies, under or in relation to the fiscal bodies legislation. 24 Maximum penalty--$25 000. 25 `(4) Subsection (3) does not prevent a person to whom this section 26 applies from disclosing protected information or producing a protected 27 document, to-- 28 (a) a court; or 29 (b) the State supervisory authority in relation to a State; or 30 (c) a financial sector supervisory agency; or 31

 


 

s 32 26 s 33 Financial Institutions Legislation Amendment (d) a law enforcement agency; or 1 (e) a Minister or nominee of a Minister; or 2 (f) a Government agency; or 3 (g) to the extent the protected information or document is about a 4 special services provider--the special services provider's auditor; 5 or 6 (h) to the extent the protected information or document is about a 7 special services provider and is relevant to the period of office of 8 a former auditor of the special services provider--the former 9 auditor. 10 `(5) Subsection (3) does not prohibit a person to whom this section 11 applies from disclosing protected information or producing a protected 12 document relating to the affairs of a person if the person agrees in writing to 13 the disclosure of the protected information or the production of the protected 14 document. 15 `(6) A person to whom this section applies cannot be required to disclose 16 to a court protected information or to produce to a court a protected 17 document except when it is necessary to do so for the purposes of the fiscal 18 bodies legislation.'. 19 of s 157 (Directors and employees to act honestly etc.) 20 Amendment Clause 32. Section 157(2)(b), after `financial body'-- 21 insert-- 22 `or friendly institution'. 23 of s 164 (Delegation of Board's powers) 24 Amendment Clause 33.(1) Section 164(1)(c) and (d), after `an'-- 25 insert-- 26 `appropriately qualified'. 27 (2) Section 164-- 28 insert-- 29

 


 

s 34 27 s 36 Financial Institutions Legislation Amendment `(6) In this section-- 1 "appropriately qualified" includes having the qualifications, experience or 2 standing appropriate to exercise the power. 3 4 Example of standing-- 5 The seniority of a person's position in a body in which the person is employed.'. for `financial institution' and `financial institutions' 6 Amendment Clause 34.(1) Provisions mentioned in the schedule, part 1, `financial 7 institution'-- 8 omit, insert-- 9 `fiscal body'. 10 (2) Provisions mentioned in the schedule, part 2, `financial 11 institutions'-- 12 omit, insert-- 13 `fiscal bodies'. 14 ART 3--AMENDMENT OF AUSTRALIAN 15 P FINANCIAL INSTITUTIONS COMMISSION ACT 16 1992 17 amended in pt 3 18 Act Clause 35. This part amends the Australian Financial Institutions Commission 19 Act 1992. 20 of s 11 (Interpretation of some expressions in the AFIC 21 Amendment (Queensland) Code and the AFIC (Queensland) Regulations) 22 Clause 36. Section 11(1)-- 23 insert-- 24

 


 

s 37 28 s 39 Financial Institutions Legislation Amendment ` "Friendly Societies Code" means the Friendly Societies (Queensland) 1 Code.'. 2 PART 4--AMENDMENT OF FINANCIAL 3 INSTITUTIONS CODE 4 amended in pt 4 5 Code Clause 37. This part amends the Financial Institutions Code set out in the 6 Financial Institutions (Queensland) Act 1992, section 30. 7 of s 3 (Definitions) 8 Amendment Clause 38.(1) Section 3-- 9 insert-- 10 ` "approved holder" means a body corporate that, under a standard, is 11 approved by AFIC as an approved holder for the purposes of part 4, 12 division 1A. 13 "certified", for sections 71 to 71D, means certified by the SSA.'. 14 (2) Section 3, definition "services corporation", `section 119 15 (Acquisition of shares in services corporation)'-- 16 omit, insert-- 17 `section 74A (SSA may declare body as services corporation)'. 18 of s 65 (Corporations Law applying under its own force) 19 Amendment Clause 39. Section 65(2)(a)(vii), `debentures)'-- 20 omit, insert-- 21 `debentures),'. 22

 


 

s 40 29 s 42 Financial Institutions Legislation Amendment of s 66 (Functions of SSA) 1 Amendment Clause 40.(1) Section 66(g)-- 2 omit, insert-- 3 `(g) otherwise undertake the administration and enforcement of the 4 financial institutions scheme so far as it relates to societies; and'. 5 (2) Section 66(h)(ii)-- 6 omit, insert-- 7 `(ii) the operation, administration and enforcement of the 8 financial institutions scheme so far as it relates to societies; 9 and'. 10 of s 71 (Public office of SSA and inspection of 11 Amendment documents) 12 Clause 41.(1) Section 71(2)-- 13 omit, insert-- 14 `(2) All registers kept by the SSA under this Code, and the rules of 15 financial bodies, must be kept at the SSA's public office.'. 16 (2) Section 71(3)(a)(i), `registration documents and'-- 17 omit. 18 (3) Section 71(3)(b)(ii), `extract'-- 19 omit, insert-- 20 `certified extract'. 21 of new ss 71A to 71F 22 Insertion Clause 42. After section 71-- 23 insert-- 24 and transparencies 25 `Reproductions `71A.(1) This section applies if a reproduction or transparency of a 26 document has been incorporated in the documents kept by the SSA. 27

 


 

s 42 30 s 42 Financial Institutions Legislation Amendment `(2) The SSA may produce the reproduction or transparency for a 1 person's inspection for the purposes of section 71(3)(a), and the person is 2 not entitled to require the production of the original of the document. 3 `(3) A certified copy of, or certified extract from, the reproduction or 4 transparency may be supplied to a person for the purposes of 5 section 71(3)(b), and the person is not entitled to require a copy of, or an 6 extract from, the original of the document. 7 kept by devices 8 `Records `71B.(1) This section applies if the SSA keeps by means of a 9 mechanical, electronic or other device a record of the information set out in 10 a document kept by the SSA. 11 `(2) The SSA may, for the purposes of a person's inspection of the 12 document under section 71(3)(a)-- 13 (a) produce material in written form setting out what purports to be 14 the contents of the document; or 15 (b) if the person does not ask for the production of material 16 mentioned in paragraph (a)--cause to be displayed what purports 17 to be the contents of the document. 18 `(3) If the SSA acts under subsection (2), the person is not entitled under 19 section 71(3)(a) to require the production of the original of the document. 20 given in written form 21 `Material `71C.(1) This section applies if-- 22 (a) a person seeks to obtain, under section 71(3)(b), a certified copy 23 of, or certified extract from, a document; and 24 (b) the SSA keeps by means of a mechanical, electronic or other 25 device a record of information set out in the document; and 26 (c) the SSA-- 27 (i) gives the person material in written form setting out what 28 purports to be the contents of the whole of the document, 29 and certifies that the material sets out the contents of the 30 whole of the document; or 31

 


 

s 42 31 s 42 Financial Institutions Legislation Amendment (ii) gives the person material in written form setting out what 1 purports to be the contents of a part of the document, and 2 certifies that the material sets out the contents of the part of 3 the document. 4 `(2) For the purposes of section 71(3)(b), the SSA is taken to have given 5 the person-- 6 (a) if subsection (1)(c)(i) applies--a certified copy of the document; 7 or 8 (b) if subsection (1)(c)(ii) applies--a certified extract from the 9 document. 10 copies etc. are evidence 11 `Certified `71D.(1) A certified copy of, or certified extract from, a document held 12 by the SSA, or a certified copy of, or a certified extract from, a reproduction 13 or transparency of a document incorporated in the documents held by the 14 SSA, is, in a proceeding, admissible in evidence as a document of equal 15 validity with the original of the document. 16 `(2) The material in written form mentioned in section 71C(1)(c) is, in a 17 proceeding, evidence of the information contained in it. 18 information from certain document registers 19 `Obtaining `71E.(1) The SSA may permit a person to search a prescribed register of 20 documents by using a data processor to obtain prescribed information from 21 the register. 22 `(2) The SSA may make available to a person prescribed information (in 23 the form of a document or otherwise) that the SSA has obtained from a 24 prescribed register of documents by using a data processor. 25 `(3) This section does not limit-- 26 (a) a power or function the SSA has other than under this section; or 27 (b) a right a person has other than under this section. 28 `(4) In this section-- 29 "data processor" means a mechanical, electronic or other device for 30

 


 

s 43 32 s 43 Financial Institutions Legislation Amendment processing data. 1 "search" includes inspect. 2 in a proceeding of information from SSA database 3 `Use `71F.(1) In a proceeding, material in written form purporting to have 4 been prepared by the SSA is admissible as evidence of the matters stated in 5 so much of the material as sets out what purports to be information 6 obtained by the SSA, by using a data processor, from the SSA database. 7 `(2) Material in written form need not bear a certificate or signature in 8 order to be taken to purport to have been prepared by the SSA. 9 `(3) This section does not limit, and is not limited by, sections 71 to 71E. 10 `(4) In this section-- 11 "data processor" means a mechanical, electronic or other device for 12 processing data. 13 "SSA database" means so much of the database kept by the SSA (but not 14 including any document imaging system) as consists of-- 15 (a) some or all of a register kept by the SSA under this Code; or 16 (b) information set out in a document lodged under this Code.'. 17 of pt 2, div 2 (Specific powers) 18 Amendment Clause 43. Part 2, division 2, subdivision 1, heading-- 19 omit, insert-- 20 `Subdivision 1--Services corporations 21 may declare body as services corporation 22 `SSA `74A. The SSA may, by Gazette notice, declare to be a services 23 corporation a body corporate that provides or proposes to provide financial 24 or other services to societies to enable them to further their objects. 25

 


 

s 43 33 s 43 Financial Institutions Legislation Amendment may subscribe for shares in services corporations 1 `Societies `74B.(1) A society may subscribe for or otherwise acquire shares in a 2 services corporation. 3 `(2) However, a society must not, without the written approval of the 4 SSA, apply funds of more than the prescribed amount or an amount 5 calculated as prescribed, whichever is greater, in subscribing for or 6 otherwise acquiring shares in any one services corporation. 7 Maximum penalty for subsection (2)--$25 000. 8 for approval 9 `Applications `74C.(1) On an application for approval under section 74B(2), the SSA 10 may-- 11 (a) give the approval; or 12 (b) refuse to give the approval. 13 `(2) The SSA may-- 14 (a) subject an approval to conditions; and 15 (b) at any time, vary or revoke a condition imposed on an approval. 16 `(3) If a condition (including a prescribed condition) to which an 17 approval is subject has been contravened, the SSA may revoke the 18 approval. 19 `(4) The SSA must not refuse to give an approval, or subject an approval 20 to conditions,without first giving the society an opportunity to be heard or, 21 if the society prefers, an opportunity to make written submissions to it, in 22 relation to the matter. 23 `(5) The SSA must not vary a condition imposed on an approval, or 24 revoke an approval, without first giving the society an opportunity to be 25 heard or, if the society prefers, an opportunity to make written submissions 26 to it, in relation to the matter. 27 `(6) The variation or revocation of a condition imposed on an approval or 28 the revocation of an approval takes effect on the later of-- 29 (a) the day written notice of the variation or revocation is given to the 30 society; or 31

 


 

s 44 34 s 45 Financial Institutions Legislation Amendment (b) a day specified in that notice for the purpose. 1 `(7) A society must not contravene any condition imposed on an 2 approval. 3 Maximum penalty for subsection (7)--$25 000. 4 dealing with societies contravening s 74B(2) 5 `Persons `74D. The application by a society of funds in contravention of 6 section 74B(2) is enforceable by a person transacting business with the 7 society unless the person-- 8 (a) has actual knowledge of the contravention at the time when the 9 funds were applied; or 10 (b) has a connection or relationship with the society of a type that the 11 person should have known of the contravention. 12 `Subdivision 1A--Enforcement powers'. 13 of s 76 (Obtaining evidence) 14 Amendment Clause 44.(1) Section 76(9), `Neither an'-- 15 omit, insert-- 16 `An'. 17 (2) Section 76(9), `, nor any information' to `the answer, is'-- 18 omit, insert-- 19 `is not'. 20 of s 84 (Offence related warrant may be granted by 21 Amendment telephone) 22 Clause 45. Section 84(2), `an'-- 23 omit. 24

 


 

s 46 35 s 47 Financial Institutions Legislation Amendment of s 90 (Appointment of administrator) 1 Amendment Clause 46.(1) Section 90(9)(c), `appointed or'-- 2 omit. 3 (2) Section 90(10)(b), `until the"-- 4 omit, insert-- 5 `until the end of the'. 6 of new s 91A 7 Insertion Clause 47. After section 91-- 8 insert-- 9 of society after s 91 no longer applies 10 `Rules `91A.(1) This section applies to a society if the SSA-- 11 (a) appoints directors of the society under section 90(9)(d) 12 (Appointment of administrator); and 13 (b) by written notice given to the society under section 91(1)(c) 14 (Additional powers of SSA), specifies rules that are to be the 15 society's rules. 16 `(2) On and from the section 91 expiry, the rules specified under 17 section 91(1)(c), as amended under section 91(2)(c), (the "SSA rules") 18 continue to apply in the way (including in the way stated in 19 section 91(4)(b)) they applied immediately before the section 91 expiry. 20 `(3) Subsection (2) does not have effect to stop the society from making 21 rules after the section 91 expiry, including, for example, rules directed at-- 22 (a) changing the way the SSA rules apply to the society; or 23 (b) stopping the SSA rules from having further effect; or 24 (c) reinstating as the rules of the society, in whole or in part, the rules 25 that were the society's rules immediately before the directors 26 were appointed under section 90(9)(d). 27 `(4) However, if before the section 91 expiry the SSA gave written notice 28 to the society specifying a period (the "specified period") for the purposes 29 of this subsection, the society may make a rule within the specified period 30

 


 

s 48 36 s 50 Financial Institutions Legislation Amendment only if the society first obtains the written consent of the SSA to the making 1 of the rule. 2 `(5) In this section-- 3 "section 91 expiry" means the end of-- 4 (a) the time mentioned in section 91(1)(a) (Additional powers of 5 SSA); or 6 (b) if the time mentioned in section 91(1)(a) has been extended under 7 section 91(3)--the time as extended.'. 8 of s 94 (Supervision Fund) 9 Amendment Clause 48. Section 94(3)-- 10 insert-- 11 `(aa) any payment for or towards the expenses of the SSA within the 12 meaning of the Friendly Societies Code for performing its 13 functions and exercising its powers under the friendly societies 14 legislation within the meaning of the AFIC Code; and'. 15 of s 97 (Credit Unions Contingency Fund) 16 Amendment Clause 49. Section 97(3), `is to consist of'-- 17 omit, insert-- 18 `vests in the SSA, and consists of'. 19 of s 98 (Contributions by credit unions) 20 Amendment Clause 50. Section 98(10)-- 21 omit, insert-- 22 `(10) The amount standing to a credit union's credit in the Credit Unions 23 Contingency Fund is treated as a deferred asset in the accounts of the credit 24 union.'. 25

 


 

s 51 37 s 52 Financial Institutions Legislation Amendment of new s 99A 1 Insertion Clause 51. After section 99-- 2 insert-- 3 of retained earnings of Credit Unions Contingency 4 `Distribution Fund 5 `99A.(1) The SSA may from time to time distribute the whole or a part 6 of retained earnings to the contribution accounts of credit unions. 7 `(2) A distribution under subsection (1) must be done in an equitable 8 way, including taking into account the extent to which the generation of 9 retained earnings is attributable to the contributions of each credit union to 10 the Credit Unions Contingency Fund. 11 `(3) The SSA may make a distribution under subsection (1) only if it is 12 satisfied that the capital amount of the Credit Unions Contingency Fund will 13 continue to be sufficient, after the distribution has been made, for the 14 purposes mentioned in section 97(2) (Credit Unions Contingency Fund). 15 `(4) In this section-- 16 "contribution accounts", of credit unions, means the parts of the Credit 17 Unions Contingency Fund that, under section 98(10) (Contributions 18 by credit unions), are treated as a deferred asset in the accounts of the 19 credit unions. 20 "retained earnings" means all amounts standing to the credit of the Credit 21 Unions Contingency Fund, other than amounts in the contribution 22 accounts of credit unions.'. 23 of s 105D (Consequences of entering into contingency 24 Amendment fund agreement) 25 Clause 52. Section 105D(5)-- 26 insert-- 27 ` section 99A (Distribution of retained earnings of Credit Unions 28 Contingency Fund)'. 29

 


 

s 53 38 s 55 Financial Institutions Legislation Amendment of s 106 (Restriction on initial advertisements) 1 Amendment Clause 53. Section 106(2) to (4)-- 2 omit, insert-- 3 `(2) The permission granted by the SSA under subsection (1) applies for 4 the purposes of this section only, and must not be construed as-- 5 (a) permission for any other matter or thing for which permission 6 under this Code is required; or 7 (b) approval by the SSA of the content of any advertisement issued 8 under the permission. 9 `(3) A person must not issue, or cause to be issued, an advertisement 10 mentioned in subsection (1) if the advertisement states, expressly or by 11 implication, that permission to issue the advertisement has been granted by 12 the SSA. 13 Maximum penalty for subsection (3)--$100 000 or imprisonment for 14 15 years, or both.'. 15 of s 112 (Level of assets of building society associated 16 Amendment with primary objects) 17 Clause 54. Section 112(2), from `derived from' to `was provided'-- 18 omit, insert-- 19 `derived from the application of funds by it in pursuance of objects that, 20 when the funds were applied,'. 21 of s 115 (Registration) 22 Amendment Clause 55. Section 115(5)(d) to (f)-- 23 omit, insert-- 24 `(d) if the society is proposed to operate as a credit union-- 25 (i) the proposed rules limit membership to persons having a 26 common bond of association; and 27 (ii) there are reasonable grounds for believing that, within the 28 society's post-registration period, the society will hold 29

 


 

s 55 39 s 55 Financial Institutions Legislation Amendment deposits from its members of not less than the society's 1 minimum deposit amount; and 2 (e) there are reasonable grounds for believing that, if registered, the 3 society will, within a reasonable time, be able-- 4 (i) to comply with all applicable standards and applicable 5 character requirements; and 6 (ii) to carry out its objects successfully; and 7 (f) there is no good reason why the society and its rules should not 8 be registered. 9 `(6) In subsection (5)(d)(ii)-- 10 "minimum deposit amount", for a society, means-- 11 (a) $200 000; or 12 (b) if the SSA decides it is appropriate in the circumstances for a 13 smaller minimum deposit amount to apply for the society--the 14 amount the SSA decides. 15 "post-registration period", for a society, means-- 16 (a) 3 months after the society's registration; or 17 (b) if the SSA decides it is appropriate in the circumstances for a 18 longer post-registration period to apply for the society--the 19 period the SSA decides. 20 `(7) The SSA may, for the purposes of paragraph (b) of the definition 21 "minimum deposit amount" in subsection (6), decide a smaller minimum 22 deposit amount for a society only if-- 23 (a) the society asks the SSA to do so; and 24 (b) the SSA consults with AFIC, and has regard to AFIC's views in 25 deciding whether it is appropriate for a smaller minimum deposit 26 amount to apply for the society, and if so, the size of the amount. 27 `(8) The SSA may, for the purposes of paragraph (b) of the definition 28 "post-registration period" in subsection (6), decide a longer post- 29 registration period for a society only if-- 30 (a) the society asks the SSA to do so; and 31 (b) the SSA consults with AFIC, and has regard to AFIC's views in 32

 


 

s 56 40 s 56 Financial Institutions Legislation Amendment deciding whether it is appropriate for a longer post-registration 1 period to apply for the society, and if so, the length of the 2 period.'. 3 of new pt 4, div 1A 4 Insertion Clause 56. After section 115-- 5 insert-- 6 1A--Formation and registration of building society for 7 `Division approved holder 8 of division 9 `Application `115A. This division provides for the registration of a building society on 10 the application of an approved holder, and has effect as an alternative to 11 division 1. 12 of building society as wholly owned society 13 `Registration `115B.(1) A person (the "applicant") may apply to the SSA for the 14 registration of a building society (the "proposed society") under this 15 division. 16 `(2) The application must be made in accordance with the regulations. 17 `(3) The application may be made only if, not earlier than 3 months 18 before the application is made, AFIC has certified, under a standard relating 19 to approved holders, that the applicant is an approved holder. 20 `(4) The application must be accompanied by-- 21 (a) 2 copies of the proposed rules of the proposed society; and 22 (b) a list containing the full name, date and place of birth, residential 23 address and business occupation of each proposed director; and 24 (c) written estimates of all income and expenditure and capital flows 25 over each of the first 3 years of operation of the society; and 26 (d) the evidence the SSA requires to show-- 27 (i) that the proposed society is eligible for registration under this 28

 


 

s 56 41 s 56 Financial Institutions Legislation Amendment division; and 1 (ii) that the proposed society, if registered, will be able to 2 comply with the financial institutions legislation, all 3 applicable standards and applicable character requirements; 4 and 5 (iii) that the proposed society, if registered, will be able to carry 6 out its objects successfully. 7 `(5) The SSA may, for the purposes of this section, accept a statutory 8 declaration as sufficient evidence of matters mentioned in the declaration. 9 `(6) If the SSA is satisfied that the proposed society is eligible for 10 registration under this division, the SSA must-- 11 (a) register the proposed society in the name specified in the 12 proposed rules; and 13 (b) register the proposed rules as the rules for the society; and 14 (c) authorise the society to operate as a building society. 15 `(7) A proposed society is eligible for registration under this division 16 only if-- 17 (a) the application for registration of the proposed society complies 18 with this Code; and 19 (b) the applicant has obtained a suitable exemption under section 199 20 (Power of SSA to exempt etc. from division 5) from compliance 21 with section 194 (Consequences of exceeding maximum 22 permissible shareholding), and the conditions of the exemption 23 include a condition requiring the applicant to hold all shares in the 24 proposed society; and 25 (c) the proposed rules of the proposed society are not contrary to the 26 financial institutions legislation; and 27 (d) there are reasonable grounds for believing that, within 3 months 28 of its registration, the proposed society will have a paid-up share 29 capital of not less than $10 000 000, of which not less than 50% 30 will be available on terms such that-- 31 (i) repayment is not required within 7 years from its receipt by 32 the proposed society; and 33

 


 

s 57 42 s 57 Financial Institutions Legislation Amendment (ii) repayment cannot be made without the consent of the SSA; 1 and 2 (e) there are reasonable grounds for believing that, if registered under 3 this division, the proposed society will, within a reasonable time, 4 be able-- 5 (i) to comply with all applicable standards and applicable 6 character requirements; and 7 (ii) to carry out its objects successfully; and 8 (f) there is no good reason why the proposed society and its rules 9 should not be registered. 10 11 `Offence `115C. A person must not make an offer or invitation to the public in 12 order to raise funds for a building society proposed to be registered under 13 this division by accepting amounts on deposit or loan. 14 Maximum penalty--$100 000 or imprisonment for 15 years, or both. 15 `Division 1B--Incorporation'. 16 of s 116 (Certificate of incorporation) 17 Amendment Clause 57. Section 116(1)-- 18 omit, insert-- 19 `116.(1) On registering a society, the SSA must-- 20 (a) issue to the society a document that includes-- 21 (i) a certificate of incorporation; and 22 (ii) a written authority to operate-- 23 (A) if the society is registered under division 1--as a 24 building society or credit union; or 25 (B) if the society is registered under division 1A--as a 26 building society; and 27

 


 

s 58 43 s 59 Financial Institutions Legislation Amendment (b) create and keep for its own records a copy of the document 1 mentioned in paragraph (a).'. 2 of s 117 (Effect of incorporation) 3 Amendment Clause 58.(1) Section 117(a)-- 4 omit. 5 (2) Section 117(b) and (c)-- 6 renumber as section 117(a) and (b). 7 of pt 4, div 2 (Powers) 8 Amendment Clause 59. Part 4, division 2, heading-- 9 omit, insert-- 10 2--Legal capacity and powers 11 `Division 12 `Interpretation `117A. In sections 117B to 119-- 13 (a) a reference to the doing of an act by a society includes a reference 14 to the making of an agreement by the society and a reference to a 15 transfer of property to or by the society; and 16 (b) a reference to legal capacity includes a reference to powers. 17 of sections 118 and 119 18 `Purpose `117B.(1) The purpose of sections 118(1) to (1C) and 119 is-- 19 (a) to abolish the doctrine of ultra vires in its application to societies; 20 and 21 (b) without affecting the validity of a society's dealings with 22 outsiders, to ensure that the society's officers and members give 23 effect to provisions of the society's rules relating to objects or 24 powers of the society. 25

 


 

s 60 44 s 61 Financial Institutions Legislation Amendment `(2) Sections 118(1) to (1C) and 119 are to be construed, and to have 1 effect, in accordance with subsection (1).'. 2 of s 118 (Powers of societies) 3 Amendment Clause 60.(1) Section 118, all words before subsection (1)(a)-- 4 omit, insert-- 5 `Legal capacity 6 `118.(1) A society has, both within and outside this State, the legal 7 capacity of a natural person. 8 `(1A) Without limiting subsection (1), a society has, both within and 9 outside this State, power to--'. 10 (2) Section 118-- 11 insert-- 12 `(1B) Subsections (1) and (1A) have effect in relation to a society-- 13 (a) subject to the financial institutions legislation (other than 14 section 119 of this Code); and 15 (b) if the society's rules contain an express or implied restriction on, 16 or an express or implied prohibition of, the exercise by the society 17 of any of its powers--despite the restriction or prohibition; and 18 (c) despite its objects; and 19 (d) despite section 119. 20 `(1C) The fact that the doing of an act by a society would not be, or is 21 not, in its best interests does not affect its legal capacity to do the act.'. 22 of s 119 (Acquisition of shares in services corporation) 23 Replacement Clause 61. Section 119-- 24 omit, insert-- 25 on societies 26 `Restrictions `119.(1) A society's rules may contain an express restriction on, or an 27 express prohibition of, the exercise by the society of a power of the society 28

 


 

s 61 45 s 61 Financial Institutions Legislation Amendment (including a power mentioned in section 118(1A)). 1 `(2) A society contravenes this subsection if-- 2 (a) it exercises a power contrary to an express restriction on, or an 3 express prohibition of, the exercise of that power, being a 4 restriction or prohibition contained in the society's rules; or 5 (b) the society does an act otherwise than for the purposes of its 6 objects. 7 `(3) An officer of a society who is involved in a contravention by the 8 society of subsection (2) contravenes this subsection. 9 `(4) A person who contravenes subsection (2) or (3) does not commit an 10 offence. 11 `(5) If a society contravenes subsection (2) by exercising a power 12 mentioned in subsection (2)(a), the exercise of the power is not invalid 13 merely because of the contravention. 14 `(6) If a society contravenes subsection (2) by doing an act mentioned in 15 subsection (2)(b), the act is not invalid merely because of the contravention. 16 `(7) An act of an officer of a society is not invalid merely because, by 17 doing the act, the officer contravenes subsection (3). 18 `(8) This section does not prejudice a proceeding by a member of a 19 society to restrain the body from entering into or carrying out a transaction 20 that lies beyond the powers conferred on the society by the financial 21 institutions legislation, any other law or the society's rules. 22 having dealings with societies 23 `Persons `119A.(1) A person having dealings with a society is, subject to 24 subsection (6), entitled to make, in relation to those dealings, the 25 assumptions mentioned in subsection (5). 26 `(2) In a proceeding in relation to dealings mentioned in subsection (1), 27 any assertion by the society that the matters that under subsection (1) the 28 person is entitled to assume were not correct must be disregarded. 29 `(3) A person (the "first person") having dealings with a person 30 (the "second person") who has acquired or purports to have acquired title 31 to property from a society (whether directly or indirectly) is, subject to 32

 


 

s 61 46 s 61 Financial Institutions Legislation Amendment subsection (8), entitled to make, in relation to the acquisition or purported 1 acquisition of title from the society, the assumptions mentioned in 2 subsection (5). 3 `(4) In a proceeding in relation to dealings mentioned in subsection (3), 4 any assertion by the society or by the second person that the matters that 5 under subsection (3) the first person is so entitled to assume were not 6 correct must be disregarded. 7 `(5) The assumptions that a person is, under subsection (1) or (3), 8 entitled to make in relation to dealings with a society, or in relation to an 9 acquisition or purported acquisition from a society of title to property, are-- 10 (a) that at all relevant times, the society's rules have been complied 11 with; and 12 (b) that a person who appears, from notices or returns lodged with 13 the SSA, to be a director, principal executive officer or secretary 14 of the society has been duly appointed and has authority to 15 exercise the powers and perform the duties customarily exercised 16 or performed by a director, principal executive officer or secretary 17 of a society; and 18 (c) that a person who is held out by the society to be an officer or 19 agent of the society has been duly appointed and has authority to 20 exercise the powers and perform the duties customarily exercised 21 or performed by an officer or agent of the kind concerned; and 22 (d) that an officer or agent of the society who has authority to issue a 23 document on behalf of the society has authority to warrant that the 24 document is genuine and that an officer or agent of the society 25 who has authority to issue a certified copy of a document on 26 behalf of the society has authority to warrant that the copy is a 27 true copy; and 28 (e) that a document has been duly sealed by the society if-- 29 (i) it bears what appears to be an impression of the society's 30 seal; and 31 (ii) the sealing of the document appears to be witnessed by 32 2 people, 1 of whom may be assumed to be a director 33 because of paragraph (b) or (c) and the other of whom may 34 be assumed to be a director or secretary of the society 35

 


 

s 61 47 s 61 Financial Institutions Legislation Amendment because of those paragraphs; and 1 (f) that the officers and agents of the society properly perform their 2 duties to the society. 3 `(6) Despite subsection (1), a person is not entitled to make an 4 assumption mentioned in subsection (5) in relation to dealings with a 5 society if-- 6 (a) the person has actual knowledge that the matter that, apart from 7 this subsection, the person would be entitled to assume is not 8 correct; or 9 (b) because of the person's connection or relationship with the 10 society, the person ought to know that the matter that, apart from 11 this subsection, the person would be entitled to assume is not 12 correct. 13 `(7) If, under subsection (6), a person is not entitled to make a particular 14 assumption in relation to dealings with a society, subsections (1) and (2) 15 have no effect in relation to any assertion by the society in relation to the 16 assumption. 17 `(8) Despite subsection (3), a person is not entitled to make an 18 assumption mentioned in subsection (5) in relation to an acquisition or 19 purported acquisition from a society of title to property if-- 20 (a) the person has actual knowledge that the matter that, apart from 21 this subsection, the person would be entitled to assume is not 22 correct; or 23 (b) because of the person's connection or relationship with the 24 society, the person ought to know that the matter that, apart from 25 this subsection, the person would be entitled to assume is not 26 correct. 27 `(9) If, under subsection (8), a person is not entitled to make a particular 28 assumption in relation to dealings with a society, subsections (3) and (4) 29 have no effect in relation to any assertion by the society or by any other 30 person in relation to the assumption. 31

 


 

s 62 48 s 63 Financial Institutions Legislation Amendment notice not presumed 1 `Constructive `119B. A person dealing with a society, or an agent of a society, is not to 2 be presumed to have notice of the society's rules or any document 3 registered or lodged with the SSA in relation to the society.'. 4 of s 120 (Control of certain financial transactions) 5 Amendment Clause 62. Section 120(4)-- 6 omit, insert-- 7 `(4) A contract entered into by a society in contravention of this section is 8 enforceable by another party to the contract unless-- 9 (a) the other party had actual knowledge of the contravention when 10 the contract was entered into; or 11 (b) because of the other party's connection or relationship with the 12 society, the other party should have known of the contravention.'. 13 of new s 121A 14 Insertion Clause 63. After section 121, in division 2-- 15 insert-- 16 of overseas plant and equipment 17 `Purchase `121A.(1) Despite section 121, a credit union or a building society may, 18 to the extent permitted by a standard, invest its funds in foreign currency, or 19 carry out any of its activities in foreign currency, to buy plant and 20 equipment, and goods and services, for its business. 21 `(2) However, the conditions applying to a building society under 22 section 121(4) for borrowing money in a foreign currency from a source 23 within or outside Australia apply to a building society or credit union that, in 24 buying plant and equipment, and goods and services, for its business, 25 borrows money in a foreign currency from a source within or outside 26 Australia.'. 27

 


 

s 64 49 s 66 Financial Institutions Legislation Amendment of s 122 (Rules) 1 Amendment Clause 64. Section 122(1) and (2)-- 2 omit, insert-- 3 `122.(1) The rules of a society must set out-- 4 (a) the primary objects of the society; and 5 (b) any other objects of the society. 6 `(2) The rules of a society must provide for the matters specified in a 7 standard.'. 8 of s 123 (Model rules) 9 Omission Clause 65. Section 123-- 10 omit. 11 of s 127 (Alteration of rules by board of directors) 12 Replacement Clause 66. Section 127-- 13 omit, insert-- 14 of rules by board of directors 15 `Alteration `127.(1) A society's rules may be altered by a resolution of its board if-- 16 (a) the alteration is authorised or required by or under any Act or law 17 or a standard; or 18 (b) the SSA is satisfied that approval of the alteration by the 19 members of the society is not necessary and alteration by a 20 resolution of the board is appropriate. 21 `(2) The society must give its members, by the day on which notice is 22 given of the next general meeting of the society, a written notice setting out 23 the text or a summary of an alteration of the society's rules under this 24 section. 25 Maximum penalty--$5 000. 26 `(3) The notice may, with the prior written approval of the SSA, be given 27 by advertisement published in a newspaper circulating generally-- 28

 


 

s 67 50 s 68 Financial Institutions Legislation Amendment (a) in the area of the State in which the society operates; and 1 (b) if the society operates in another State, or other States, in the other 2 State or States. 3 `(4) The SSA may require a society that has altered its rules under this 4 section (other than under subsection (1)(b)) to obtain approval of the 5 alteration by the members of the society.'. 6 of s 133 (Joint members) 7 Amendment Clause 67. Section 133-- 8 insert-- 9 `(3) A person whose membership of a society is joint, whether or not the 10 person is a primary joint member, is taken to be a member of the society 11 for the purposes of the operation of section 138 (Financial accommodation 12 to, and deposits from, members and others).'. 13 of s 138A (Dormant accounts) 14 Replacement Clause 68. Section 138A-- 15 omit, insert-- 16 accounts 17 `Dormant `138A.(1) This section applies if there have been no transactions in a 18 person's deposit account with a society for 1 year, or a longer time specified 19 in the society's rules for the purposes of this section. 20 `(2) The society may debit the account with a fee payable to the society 21 only if there is an agreement between the person and the society that the 22 society may continue to debit the account with the fee. 23 `(3) The society may classify the account as a dormant account if-- 24 (a) the society has given to the person a written notice stating that, 25 unless the person gives to the society a written notice within 26 1 month stating that the person wishes the account to remain 27 open, the society intends to close the account; and 28 (b) the society does not, within that month, receive a written notice 29 from the person stating that the person wishes the account to 30

 


 

s 68 51 s 68 Financial Institutions Legislation Amendment remain open. 1 `(4) If the society classifies the account as a dormant account, the society 2 may-- 3 (a) without any agreement, debit the account with a fee payable to the 4 society, but the fee must not be more than the lesser of-- 5 (i) the amount held for the person in the dormant account; or 6 (ii) the amount prescribed by regulation; and 7 (b) stop or reduce the payment of interest on the account, but only if 8 there is an agreement between the person and the society that the 9 society may stop or reduce the payment of interest; and 10 (c) without any agreement, close the dormant account and transfer 11 the amount held in it to another account (the "other account") 12 the purposes of which include the holding of amounts from 13 closed dormant accounts. 14 `(5) If the society transfers the amount held in the dormant account to the 15 other account, the society may-- 16 (a) without any agreement, debit the amount with a fee payable to the 17 society, but the fee must not be more than the lesser of-- 18 (i) the amount; or 19 (ii) the amount prescribed by regulation; and 20 (b) if interest was payable on the amount when it was included in the 21 other account--stop or reduce the payment of interest on the 22 amount, but only if there is an agreement between the person and 23 the society that the society may stop or reduce the payment of 24 interest. 25 `(6) A society may cancel a person's membership of the society if-- 26 (a) the amount standing to the credit of the person's only account 27 with the society (whether or not the account is a dormant account) 28 is lawfully totally paid out by the society; or 29 (b) an amount transferred from a person's dormant account to the 30 other account is lawfully totally paid out by the society, and the 31 person has no account with the society. 32

 


 

s 69 52 s 69 Financial Institutions Legislation Amendment 1 Examples of payout of an amount mentioned in subsection (6)-- 2 1. The amount is totally paid out under a law of this State about unclaimed 3 money. 4 2. The amount is totally paid out because of debits for fees payable to the society. 5 3. The amount is totally paid out because of debits for fees or taxes payable to 6 this State or the Commonwealth. `(7) To avoid doubt, it is declared that this section is subject to any law of 7 this State about unclaimed money. 8 `(8) In this section-- 9 "transaction", in a person's deposit account with a society, means a debit 10 or credit to the account, other than for-- 11 (a) the payment of interest by the society; or 12 (b) debiting the account with a fee payable to the society; or 13 (c) debiting the account with a fee or tax payable to this State or the 14 Commonwealth.'. 15 of s 139 (Name) 16 Amendment Clause 69.(1) Section 139-- 17 insert-- 18 `(1A) As soon as practicable after a name becomes the registered name 19 of a society, the SSA must advise AFIC of the society's name.'. 20 (2) Section 139(5) to (9)-- 21 omit, insert-- 22 `(5) A society must not use a name other than-- 23 (a) its registered name; or 24 (b) a name approved for its use by AFIC under part 6A (Names) of 25 the AFIC Code. 26 Maximum penalty--$75 000. 27 `(6) A society does not contravene subsection (5) by using a name in a 28 way mentioned in section 140(1) (Abbreviations etc. of society's name).'. 29

 


 

s 70 53 s 72 Financial Institutions Legislation Amendment of s 140 (Abbreviations etc. of society's name) 1 Amendment Clause 70. Section 140(2)(b)-- 2 omit, insert-- 3 `(b) a name approved for its use by AFIC under part 6A (Names) of 4 the AFIC Code.'. 5 of s 144 (Use of words `building society', `credit society', 6 Amendment `credit union' or `credit co-operative') 7 Clause 71.(1) Section 144(6), after `subsection (4),'-- 8 insert-- 9 `and, if the person is a body corporate, every officer of the body 10 corporate who is in default,'. 11 (2) Section 144(6), penalty, `for subsection (6)'-- 12 omit. 13 (3) Section 144-- 14 insert-- 15 `(7) This section does not apply to an unregistered society within the 16 meaning of section 144A (Unregistered society not to trade or carry on 17 business).'. 18 of new s 144A 19 Insertion Clause 72. After section 144-- 20 insert-- 21 society not to trade or carry on business 22 `Unregistered `144A.(1) An unregistered society must not trade or carry on business in 23 this State. 24 `(2) However, an unregistered society does not contravene subsection (1) 25 merely because the unregistered society deals with a member of the society 26 who resides in this State, if-- 27 (a) the member became a member of the unregistered society before 28

 


 

s 73 54 s 73 Financial Institutions Legislation Amendment the member started to reside in this State; and 1 (b) the dealings are only for the purposes of financial accommodation 2 provided by the unregistered society to the member before the 3 member started to reside in this State. 4 `(3) An unregistered society may apply to the SSA for an exemption 5 from subsection (1). 6 `(4) The SSA may, by written notice given to the unregistered society, 7 grant an exemption for the time and on the conditions the SSA determines. 8 `(5) The SSA may, at any time-- 9 (a) revoke an exemption; or 10 (b) vary or revoke a condition of an exemption. 11 `(6) An unregistered society that contravenes subsection (1) or a 12 condition of an exemption under subsection (4), and every officer of the 13 society who is in default, commits an offence. 14 Maximum penalty--$100 000 or imprisonment for 15 years, or both. 15 `(7) In this section-- 16 "trade or carry on business" has the meaning given in section 144 (Use 17 of words `building society', `credit society', `credit union' or `credit 18 co-operative'). 19 "unregistered society" means a body registered as a society in a 20 participating State but not registered as a foreign society in this State.'. 21 of 145 (Publication of name) 22 Amendment Clause 73.(1) Section 145(1)-- 23 omit, insert-- 24 `145.(1) A society must ensure that its registered name appears in legible 25 letters on-- 26 (a) all business letters, notices (other than advertisements) and other 27 publications (other than advertisements) signed, issued or 28 published by the society; and 29 (b) all bills of exchange, cheques, promissory notes, endorsements, 30

 


 

s 74 55 s 75 Financial Institutions Legislation Amendment orders for money or goods, invoices, receipts and other 1 documents signed or issued in the society's business. 2 `(1A) On each advertisement published by a society, the society must 3 use its registered name, or a name approved in relation to the society by 4 AFIC under part 6A (Names) of the AFIC Code, or both.'. 5 (2) Section 145(3), `either its registered name' to `section 139(5) 6 (Name),'-- 7 omit, insert-- 8 `its registered name'. 9 (3) Section 145-- 10 insert-- 11 `(5) A society does not contravene subsection (1), (2) or (3) merely 12 because the society, when displaying its registered name, also displays a 13 name approved in relation to the society by AFIC under part 6A of the 14 AFIC Code.'. 15 of s 159 (Conversion of withdrawable share capital to 16 Amendment deposits) 17 Clause 74.(1) Section 159, heading-- 18 omit, insert-- 19 `Conversion of shares to deposits (special resolution)'. 20 (2) Section 159(1), `this section'-- 21 omit, insert-- 22 `this section and section 159A (Conversion of shares to deposits (by 23 direction))'. 24 of new section 159A 25 Insertion Clause 75. After section 159-- 26 insert-- 27

 


 

s 76 56 s 76 Financial Institutions Legislation Amendment of shares to deposits (by direction) 1 `Conversion `159A.(1) A building society must establish a scheme for the conversion 2 of withdrawable share capital of the society to deposits if-- 3 (a) the SSA directs it to establish the scheme; or 4 (b) the regulations require the building society to establish the 5 scheme. 6 `(2) The SSA may give a direction for the purposes of subsection (1)(a) 7 only if there is a standard prescribing requirements for establishing a 8 scheme. 9 `(3) If the SSA gives a direction for the purposes of subsection (1)(a), 10 the building society must establish a scheme that complies with the standard 11 mentioned in subsection (2). 12 `(4) If a building society must establish a scheme for the purposes of 13 subsection (1)(b), the building society must establish a scheme that 14 complies with the regulation mentioned in subsection (1)(b). 15 `(5) Subsection (1) has effect for a building society despite the absence 16 of-- 17 (a) authority in the building society's rules for the establishment of a 18 scheme; or 19 (b) a special resolution authorising the establishment of a scheme. 20 `(6) A scheme established under the authority of this section takes effect 21 at the time, and in the way, provided for in-- 22 (a) if the scheme is established for the purposes of 23 subsection (1)(a)--the standard prescribing requirements for the 24 scheme, and subject to those requirements, the direction of the 25 SSA to establish the scheme; or 26 (b) if the scheme is established under subsection (1)(b)--the 27 regulations requiring the building society to establish the 28 scheme.'. 29 of s 160 (Withdrawable shares to rank equally with 30 Replacement deposits on winding-up) 31 Clause 76. Section 160-- 32

 


 

s 77 57 s 77 Financial Institutions Legislation Amendment omit, insert-- 1 shares to rank equally with deposits on winding-up 2 `Withdrawable `160.(1) Withdrawable shares rank equally with deposits as regards 3 return of capital on the winding-up of a building society. 4 `(2) Subsection (1) applies to a building society despite anything in the 5 building society's rules.'. 6 of s 161 (Charge on withdrawable shares or deposit 7 Replacement account) 8 Clause 77. Section 161-- 9 omit, insert-- 10 on withdrawable shares or deposit account 11 `Charge `161.(1) A society has, in relation to any debt owed by a person to the 12 society, a charge on-- 13 (a) the person's withdrawable shares in the society; and 14 (b) the credit balance of any deposit account of the person; and 15 (c) any dividend, interest, bonus or rebate payable to the person. 16 `(2) The charge created by subsection (1) may be enforced by the 17 appropriation by the society of the share capital or other money subject to 18 the charge. 19 `(3) A share in relation to which the whole of the capital has been 20 appropriated under subsection (2) is forfeited to the society. 21 `(4) However, the society may enforce the charge only if the society has 22 given the person, in the way this section provides, the required information. 23 `(5) If the person first takes up withdrawable shares in, or places money 24 on deposit with, the society after the commencement of this section, the 25 society must give the person the required information-- 26 (a) when the person first takes up withdrawable shares in, or first 27 places money on deposit with, the society; and 28 (b) at least once in each period of 12 months after it gives the person 29 the required information for the purposes of paragraph (a). 30

 


 

s 77 58 s 77 Financial Institutions Legislation Amendment `(6) If the person first took up withdrawable shares in, or first placed 1 money on deposit with, the society after 1 July 1992 but before the 2 commencement of this section, and until the commencement of this section 3 the society has complied with the repealed provision in relation to the 4 person, the society must give the person the required information-- 5 (a) within 12 months after the society last informed the person under 6 the repealed provision; and 7 (b) at least once in each period of 12 months after it gives the person 8 the required information for the purposes of paragraph (a). 9 `(7) Subsection (8) applies if-- 10 (a) the person first took up withdrawable shares in, or placed money 11 on deposit with, the society before 1 July 1992; or 12 (b) the person first took up withdrawable shares in, or first placed 13 money on deposit with, the society after 1 July 1992 but before 14 the commencement of this section, but until the commencement 15 of this section the society has not complied fully with the repealed 16 provision in relation to the person. 17 (8) If this subsection applies, the society must give the person the 18 required information-- 19 (a) within 6 months after the commencement of this section (except 20 that if the society wishes to enforce the charge before the end of 21 6 months, but has not already given the person the required 22 information, it must give the person the required information 23 before it enforces the charge); and 24 (b) at least once in each period of 12 months after it gives the person 25 the required information for the purposes of paragraph (a). 26 `(9) This section applies to an unincorporated body of persons that 27 deposits money with a society in the same way that it applies to a person. 28 `(10) In this section-- 29 "repealed provision" means section 161(2) of this Code, as in force from 30 time to time from 1 July 1992 until the commencement of this section. 31 "required information", to be given to a person, means the information 32 that, for any debt owed by the person to the society, the society may 33 charge-- 34

 


 

s 78 59 s 80 Financial Institutions Legislation Amendment (a) the person's shares in the society; and 1 (b) the credit balance of any deposit account of the person; and 2 (c) any dividend, interest, bonus or rebate payable to the person.'. 3 of s 173 (Sale of permanent shares forfeited for 4 Amendment non-payment of call) 5 Clause 78. Section 173(1)-- 6 insert-- 7 `(c) on a stock market lawfully operated by a stock exchange (within 8 the meaning of paragraph (c) of the definition "stock exchange" 9 in the Corporations Law, section 9).'. 10 of s 184 (Application of certain provisions of Code to 11 Amendment redeemable preference shares) 12 Clause 79.(1) Section 184(1)(e) to (i)-- 13 omit. 14 (2) Section 184(1)(j) to (t)-- 15 renumber as paragraphs (e) to (o). 16 of s 234 (Election or appointment of directors) 17 Amendment Clause 80.(1) Section 234(1), after `legislation'-- 18 insert-- 19 `and to any standard about the election or appointment of directors'. 20 (2) Section 234(3)-- 21 omit, insert-- 22 `(3) Despite subsection (2), the society's rules may specify, for a director 23 elected at an annual general meeting of the society, a term of office 24 ending-- 25 (a) immediately before the election of directors at the third annual 26 general meeting of the society after the director's election; or 27

 


 

s 81 60 s 83 Financial Institutions Legislation Amendment (b) at the end of the meeting mentioned in paragraph (a).'. 1 (3) Section 234(4), `or reappointment'-- 2 omit. 3 (4) Section 234-- 4 insert-- 5 `(7) Nothing in this section prevents a person nominated as a director 6 from being appointed as a director if the number of directors nominated is 7 less than or equal to the number of places to be filled.'. 8 of s 238 (Qualifications of directors) 9 Amendment Clause 81. Section 238(c) and (d)-- 10 omit, insert-- 11 `(ba)is a member of the society only on the basis of 1 or more joint 12 memberships, and the person is not, for any joint membership, a 13 primary joint member under section 133 (Joint members); or 14 (c) is an employee of the society; or 15 (d) is an insolvent under administration within the meaning of the 16 Corporations Law, section 9; or'. 17 of s 239 (Vacation of office) 18 Amendment Clause 82.(1) Section 239(1)(i), `and is not reappointed or re-elected'-- 19 omit. 20 (2) Section 239(3), `start'-- 21 omit, insert-- 22 `end'. 23 of s 240 (Declaration of interest) 24 Amendment Clause 83.(1) Section 240(4)(a), `member'-- 25 omit, insert-- 26

 


 

s 84 61 s 85 Financial Institutions Legislation Amendment `member or officer'. 1 (2) Section 240-- 2 insert-- 3 `(8A) Subsection (8) does not apply to a director of a society who is 4 interested in a contract or proposed contract with the society if-- 5 (a) the contract or proposed contract has been or will be made with or 6 for the benefit of or on behalf of a wholly owned subsidiary of 7 the society; and 8 (b) the director is a director of that subsidiary.'. 9 of s 243 (Financial accommodation to directors and 10 Amendment associates) 11 Clause 84.(1) Section 243(5)-- 12 omit. 13 (2) Section 243(6)-- 14 renumber as subsection (5). 15 (3) Section 243, before subsection (7)-- 16 insert-- 17 `(6) However, subsection (5) applies only if the financial accommodation 18 is provided to the member on terms more favourable than the terms on 19 which it is reasonable to expect the society would give if dealing with the 20 member at arm's length in the same circumstances.'. 21 of new s 244A 22 Insertion Clause 85. After section 244-- 23 insert-- 24 not to indemnify director 25 `Society `244A.(1) A society or a related body corporate must not-- 26 (a) indemnify a person who is or has been a director of the society 27 against a liability incurred by the person as a director of the 28

 


 

s 86 62 s 86 Financial Institutions Legislation Amendment society; or 1 (b) exempt a person mentioned in paragraph (a) from a liability 2 mentioned in paragraph (a). 3 `(2) A rule or any other instrument of a society, or an agreement or 4 arrangement, is void to the extent that it provides for a society to do 5 something that subsection (1) prohibits. 6 `(3) Subsection (1) does not prevent a person from being indemnified 7 against a liability to another person (other than the society or a related body 8 corporate) unless the liability arises out of conduct involving a lack of good 9 faith. 10 `(4) Subsection (1) does not prevent a person from being indemnified 11 against a liability for costs and expenses incurred by the person-- 12 (a) in defending a proceeding, whether civil or criminal, in which 13 judgment is given in favour of the person or in which the person 14 is acquitted; or 15 (b) in connection with an application, in relation to the proceeding, in 16 which the court grants relief to the person under this Code. 17 `(5) In this section-- 18 "indemnify" includes indemnify indirectly through 1 or more interposed 19 entities.'. 20 of s 254 (Proxy votes) 21 Amendment Clause 86. Section 254(2)-- 22 omit, insert-- 23 `(2) A person appointed as a proxy-- 24 (a) may not act as a proxy for more than 10 members who do not 25 specify the way the vote is to be exercised; and 26 (b) may act as a proxy for an unlimited number of members who 27 specify the way the vote is to be exercised.'. 28

 


 

s 87 63 s 88 Financial Institutions Legislation Amendment of s 255 (Special resolutions) 1 Amendment Clause 87.(1) Section 255(1), `of those members'-- 2 omit, insert-- 3 `of the votes cast by those members'. 4 (2) Section 255(4), `setting out its terms'-- 5 omit, insert-- 6 `containing the text or a summary of the motion for the passing of the 7 resolution'. 8 of s 258 (Register of directors etc.) 9 Amendment Clause 88.(1) Section 258(3)(b)-- 10 omit, insert-- 11 `(b) particulars of directorships held by the director in bodies 12 corporate (other than related bodies corporate of the society) that 13 are-- 14 (i) public companies or subsidiaries of public companies; or 15 (ii) other financial institutions; or 16 (iii) financial institutions within the meaning of the Financial 17 Institutions Code of a participating State; or 18 (iv) friendly institutions within the meaning of the AFIC Code; 19 and'. 20 (2) Section 258(7A)-- 21 omit, insert-- 22 `(7A) A society must lodge with the SSA-- 23 (a) within 1 month after a person has become, or ceased to be, a 24 director, the principal executive officer or a secretary of the 25 society, a return in the prescribed form advising that fact and 26 containing in relation to a new director, principal executive officer 27 or secretary the matters required by subsection (3)(a) or (3A) to 28 be shown in the register; and 29

 


 

s 89 64 s 91 Financial Institutions Legislation Amendment (b) within 1 month after receiving a notice from a director, principal 1 executive officer or secretary of a change in the matters required 2 by subsection (3)(a) or (3A) to be shown in the register, a return 3 in the prescribed form advising the particulars of the change 4 specified in the notice. 5 Maximum penalty--$500.'. 6 of s 259 (Register of members) 7 Amendment Clause 89.(1) Section 259(3), `to that part'-- 8 omit, insert-- 9 `only to the part'. 10 (2) Section 259(4), `A society' to `in subsection (3),'-- 11 omit, insert-- 12 `Subject to subsection (3), a society may refuse to allow a person'. 13 of s 260 (Register of holders of permanent shares) 14 Amendment Clause 90.(1) Section 260(3), `to that part'-- 15 omit, insert-- 16 `only to the part'. 17 (2) Section 260(4), `A society' to `in subsection (3),'-- 18 omit, insert-- 19 `Subject to subsection (3), a society may refuse to allow a person'. 20 of s 274 (Directors' reports) 21 Amendment Clause 91. Section 274(1)(ab)(i) and (2)(ab)(i), after `interests' and 22 `securities'-- 23 insert-- 24 `(if any)'. 25

 


 

s 92 65 s 94 Financial Institutions Legislation Amendment of s 278 (Qualifications of auditors) 1 Amendment Clause 92.(1) Section 278(5)(d)-- 2 omit, insert-- 3 `(d) at least 1 member of the firm is-- 4 (i) a registered company auditor; and 5 (ii) ordinarily resident in this State; and'. 6 (2) Section 278-- 7 insert-- 8 `(12) The SSA, after consultation with AFIC, may exempt-- 9 (a) a person from the requirement mentioned in subsection (4)(e); or 10 (b) a firm from the requirement mentioned in subsection (5)(d)(ii).'. 11 of s 279 (Appointment of auditors) 12 Amendment Clause 93. Section 279-- 13 insert-- 14 `(2A) Within 14 days after the appointment of an auditor under 15 subsection (2), the society must give a notice of the appointment in the 16 prescribed form to the SSA. 17 Maximum penalty--$500.'. 18 of s 280 (Nomination of auditors) 19 Amendment Clause 94.(1) Section 280(3), `and,'-- 20 omit, insert-- 21 `and'. 22 (2) Section 280(3), `commit'-- 23 omit, insert-- 24 `commits'. 25

 


 

s 95 66 s 97 Financial Institutions Legislation Amendment of s 281 (Removal and resignation of auditors) 1 Amendment Clause 95.(1) Section 281(1)-- 2 omit, insert-- 3 `281.(1) A society may remove an auditor of the society from office only 4 by special resolution at a general meeting of the society.'. 5 (2) Section 281(5)-- 6 omit, insert-- 7 `(5) If an auditor is removed from office, the society must 8 immediately-- 9 (a) give written notice of the removal to the SSA; and 10 (b) if there is a trustee for the holders of securities issued by the 11 society, give to the trustee a copy of the notice given to the SSA. 12 Maximum penalty--$50 000.'. 13 (3) Section 281(12), `or, if an auditor' to `after the removal'-- 14 omit. 15 of s 291A (Definitions) 16 Amendment Clause 96. Section 291A, `In this Part'-- 17 omit, insert-- 18 `In divisions 1 and 2'. 19 of s 293 (Application for registration of merger or 20 Amendment transfer of engagements between societies of the same type) 21 Clause 97. Section 293(3)-- 22 insert-- 23 `(aa) if the proposal is for a merger--any proposal for the composition 24 of the board of the merged society; and 25 (ab) if the proposal is for a total transfer of engagements--any 26 proposal for the composition of the board of the transferee 27 society; and'. 28

 


 

s 98 67 s 101 Financial Institutions Legislation Amendment of s 298 (Certificate of confirmation (transfer by 1 Amendment direction)) 2 Clause 98. Section 298(2), after `confirmation'-- 3 insert-- 4 `indicating that the certificate takes effect when it is issued'. 5 of s 298B (When transfer of engagements takes effect) 6 Replacement Clause 99. Section 298B-- 7 omit, insert-- 8 transfer of engagements takes effect 9 `When `298B. A transfer of engagements takes effect-- 10 (a) on the issue of the certificate of confirmation of the transfer; or 11 (b) if a later time is stated in the certificate--at the later time.'. 12 of s 300 (Effect of transfer of engagements) 13 Amendment Clause 100. Section 300(4)(d), `merger'-- 14 omit, insert-- 15 `transfer of engagements'. 16 of s 302 (Application for registration of merger or 17 Amendment transfer of engagements between societies of different types) 18 Clause 101. Section 302(3)-- 19 insert-- 20 `(aa) if the proposal is for a merger--any proposal for the composition 21 of the board of the merged society; and 22 (ab) if the proposal is for a total transfer of engagements--any 23 proposal for the composition of the board of the transferee 24 society; and'. 25

 


 

s 102 68 s 105 Financial Institutions Legislation Amendment of s 302A (Cancellation of building society's permanent 1 Amendment shares) 2 Clause 102. Section 302A-- 3 insert-- 4 `(2) However, permanent shares may be cancelled for the purposes of 5 subsection (1) only if the SSA has approved the way that-- 6 (a) the shares are cancelled; and 7 (b) the proceeds of the cancellation are applied.'. 8 of s 307 (Certificate of confirmation (transfer by 9 Amendment direction)) 10 Clause 103. Section 307(2), after `confirmation'-- 11 insert-- 12 `indicating that the certificate takes effect when it is issued'. 13 of s 307B (When transfer of engagements takes effect) 14 Replacement Clause 104. Section 307B-- 15 omit, insert-- 16 transfer of engagements takes effect 17 `When `307B. A transfer of engagements takes effect-- 18 (a) on the issue of the certificate of confirmation of the transfer; or 19 (b) if a later time is stated in the certificate--at the later time.'. 20 of pt 7, div 3 (Mergers and transfers of engagements 21 Replacement involving foreign societies) 22 Clause 105. Part 7, division 3-- 23 omit, insert-- 24

 


 

s 105 69 s 105 Financial Institutions Legislation Amendment 3--Mergers and transfers of engagements involving foreign 1 `Division societies 2 for div 3 3 `Definitions `309. In this division-- 4 "certificate of confirmation" means a certificate given by the SSA, or by 5 the SSA of a participating State, to confirm a transfer of engagements. 6 "corresponding provision", to a specified provision of this Code, means, 7 in a provision of this division about a foreign society, the provision of 8 the financial institutions legislation of the participating State 9 corresponding to the specified provision. 10 "foreign society" means a body corporate that is a society under the 11 financial institutions legislation of another participating State, whether 12 or not it is registered as a foreign society under Part 11 (Foreign 13 societies). 14 "participating State", in a provision of this division about a foreign 15 society, means the State in which the foreign society is incorporated. 16 "transferee society" means-- 17 (a) a society to whom a foreign society is to transfer, or has 18 transferred, totally or partially, its engagements; or 19 (b) a foreign society to whom a society is to transfer, or has 20 transferred, totally or partially, its engagements. 21 "transferor society" means-- 22 (a) a society that is to transfer, or has transferred, totally or partially, 23 its engagements to a foreign society; or 24 (b) a foreign society that is to transfer, or has transferred, totally or 25 partially, its engagements to a society. 26 for merger or transfer of engagements 27 `Proposal `310.(1) This section applies if a society proposes a consolidation of 28 some or all of its assets, liabilities and undertakings with some or all of the 29 assets, liabilities and undertakings of a foreign society (whether of the same 30

 


 

s 105 70 s 105 Financial Institutions Legislation Amendment or a different type), by-- 1 (a) the merger of the society and the foreign society; or 2 (b) a total or partial transfer of the engagements of the society to the 3 foreign society; or 4 (c) a total or partial transfer of the engagements of the foreign society 5 to the society. 6 `(2) The proposed merger, or transfer of engagements, must be approved 7 by a special resolution of the society unless the SSA has determined that it 8 may be approved by the society's board. 9 `(3) If the society is to approve the proposed merger or transfer of 10 engagements by special resolution, it must prepare, and send to each of its 11 members, a statement approved by the SSA specifying-- 12 (a) the financial position of the society and foreign society as shown 13 in financial statements that have been prepared as at a date not 14 more than 6 months before the date of the statement; and 15 (b) if the proposal is for a merger--any proposal for the composition 16 of the board of directors of the merged society; and 17 (c) if the proposal is for a total transfer of engagements--any 18 proposal for the composition of the board of directors of the 19 transferee society; and 20 (d) any interest that any officer of the society or foreign society has in 21 the proposed merger, or transfer of engagements; and 22 (e) any compensation or other consideration proposed to be paid, or 23 any other incentive proposed to be given, to any officer or 24 member of the society or foreign society in relation to the 25 proposed merger, or transfer of engagements; and 26 (f) whether the proposal is a merger, or transfer of engagements and 27 the reason for the merger or transfer of engagements; and 28 (g) if the proposal is for a transfer of engagements--whether it is a 29 total or partial transfer of engagements; and 30 (h) if the proposal is for a merger-- 31 (i) the participating State in which the merged society will be 32 incorporated; and 33

 


 

s 105 71 s 105 Financial Institutions Legislation Amendment (ii) whether the merged society proposes to operate as a building 1 society or a credit union; and 2 (i) any other matter specified by the SSA. 3 `(4) If, under the corresponding provision to this section, the foreign 4 society is required to give its members a statement, the statement given by 5 the society and the statement given by the foreign society must be 6 consistent. 7 `(5) The statement mentioned in subsection (3) must be sent to the 8 members of the society so that it will in the ordinary course of post reach 9 each member who is entitled to vote on the special resolution not later 10 than-- 11 (a) if the resolution is to be decided at a meeting--21 days before the 12 date of the meeting; or 13 (b) if the resolution is to be decided by a postal ballot--21 days 14 before the day on or before which the ballot papers must be 15 returned by members voting in the ballot. 16 `(6) The SSA may exempt the society-- 17 (a) from the requirements to prepare the statement mentioned in 18 subsection (3) and to send the statement to its members; or 19 (b) only from the requirement to send the statement mentioned in 20 subsection (3) to its members. 21 `(7) The SSA may grant an exemption, or approve a statement, subject to 22 the conditions it considers appropriate. 23 may register merged society 24 `SSA `311.(1) This section applies if-- 25 (a) a society proposes a merger with a foreign society (whether of the 26 same or a different type); and 27 (b) the merged society is proposed to be incorporated in this State. 28 `(2) An application may be made to the SSA to register the merged 29 society. 30 `(3) The application must be made by the society and the foreign society 31

 


 

s 105 72 s 105 Financial Institutions Legislation Amendment jointly. 1 `(4) The SSA must register the merged society if it is satisfied that-- 2 (a) the society has complied with section 310 (Proposal for merger 3 or transfer of engagements), and the foreign society has complied 4 with the corresponding provision to section 310; and 5 (b) the proposed rules of the merged society are adequate; and 6 (c) there are reasonable grounds for believing that the merged society 7 will be able to comply with the standards; and 8 (d) one of the following applies-- 9 (i) the certificate of incorporation of the society has been 10 surrendered to the SSA; 11 (ii) the society's certificate of incorporation has been lost or 12 destroyed; and 13 (e) one of the following applies-- 14 (i) the certificate of incorporation of the foreign society has been 15 surrendered to the SSA of the participating State; 16 (ii) the foreign society has satisfied the SSA of the participating 17 State that its certificate of incorporation has been lost or 18 destroyed; and 19 (f) there is no good reason why the merged society and its rules 20 should not be registered. 21 `(5) If the SSA registers the merged society, it must also-- 22 (a) register its rules; and 23 (b) authorise it to operate as a building society or, as the case may be, 24 credit union; and 25 (c) cancel the registration of the society. 26 `(6) On registering the merged society, the SSA must issue to the 27 merged society-- 28 (a) a certificate of incorporation; and 29 (b) either-- 30 (i) a written authority to operate as a building society; or 31

 


 

s 105 73 s 105 Financial Institutions Legislation Amendment (ii) a written authority to operate as a credit union. 1 `(7) A merger takes effect on the issue of the certificate of incorporation 2 under subsection (6). 3 `(8) An application for the registration of a merger under this division-- 4 (a) must be made in the way and form required by the SSA; and 5 (b) must be accompanied by 2 copies of the proposed rules of the 6 merged society and any other particulars required by the SSA. 7 of confirmation for total transfer 8 `Certificate `312.(1) This section applies if a society proposes a total transfer of 9 engagements from a foreign society to the society. 10 `(2) The society may apply to the SSA for a certificate of confirmation of 11 the total transfer of engagements. 12 `(3) The SSA must issue a certificate of confirmation if it is satisfied 13 that-- 14 (a) the society has complied with section 310 (Proposal for merger 15 or transfer of engagements), and the foreign society has complied 16 with the corresponding provision to section 310; and 17 (b) the rules, or proposed new rules, of the society are adequate; and 18 (c) one of the following applies-- 19 (i) the certificate of incorporation of the foreign society has been 20 surrendered to the SSA of the participating State; 21 (ii) the foreign society has satisfied the SSA of the participating 22 State that its certificate of incorporation has been lost or 23 destroyed; and 24 (d) there is no good reason why the transfer should not take effect. 25 `(4) An application for a certificate of confirmation of a total transfer of 26 engagements under this division-- 27 (a) must be made in the way and form required by the SSA; and 28 (b) if new rules are proposed for the society--must be accompanied 29 by 2 copies of the proposed new rules. 30

 


 

s 105 74 s 105 Financial Institutions Legislation Amendment of confirmation for partial transfer 1 `Certificate `313.(1) This section applies if a society proposes a partial transfer of 2 engagements from a foreign society to the society or from the society to a 3 foreign society. 4 `(2) The society may apply to the SSA for a certificate of confirmation of 5 the partial transfer of engagements. 6 `(3) The SSA must issue a certificate of confirmation if it is satisfied 7 that-- 8 (a) the society has complied with section 310 (Proposal for merger 9 or transfer of engagements), and the foreign society has complied 10 with the corresponding provision to section 310; and 11 (b) the rules, or proposed new rules, of the transferee society are 12 adequate; and 13 (c) the SSA of the participating State has issued, or is about to issue, 14 a certificate of confirmation of the partial transfer of engagements 15 for the foreign society under the corresponding provision to this 16 section; and 17 (d) there is no good reason why the transfer should not take effect. 18 `(4) An application for a certificate of confirmation of a partial transfer of 19 engagements under this division-- 20 (a) must be made in the way and form required by the SSA; and 21 (b) if the society is the transferee society, and new rules are proposed 22 for the society--must be accompanied by 2 copies of the 23 proposed new rules for the society. 24 transfer of engagements takes effect 25 `When `314.(1) This section applies for a total or partial transfer of engagements 26 from a society to a foreign society or from a foreign society to a society. 27 `(2) The transfer of engagements takes effect-- 28 (a) if it is a total transfer of engagements-- 29 (i) on the issue under section 312 (Certificate of confirmation 30 for total transfer), or the corresponding provision to section 31

 


 

s 105 75 s 105 Financial Institutions Legislation Amendment 312, of the certificate of confirmation of the transfer; or 1 (ii) if a later time is stated in the certificate--at the later time; or 2 (b) if it is a partial transfer of engagements-- 3 (i) when the certificates of confirmation of the transfer have 4 issued, under section 313 (Certificate of confirmation for 5 partial transfer), and the corresponding provision to 6 section 313, to both the transferor and transferee societies; or 7 (ii) if a later time is stated in the certificates--at the later time. 8 of merger 9 `Effect `315.(1) This section applies on a merger of a society and a foreign 10 society taking effect, whether the merged society is registered under 11 section 311 (SSA may register merged society) or the corresponding 12 provision to section 311. 13 `(2) The merged society is the successor of the merging societies. 14 `(3) Without limiting subsection (2)-- 15 (a) the members of each merging society become members of the 16 merged society; and 17 (b) all assets and liabilities of each merging society become assets 18 and liabilities of the merged society without any conveyance, 19 transfer or assignment; and 20 (c) in all documents (including, for example, a contract to which a 21 merging society was a party), a reference to a merging society is a 22 reference to the merged society; and 23 (d) a legal proceeding by or against a merging society that is not 24 finished when the merger takes effect may be continued and 25 finished by or against the merged society; and 26 (e) the duties, obligations, immunities, rights and privileges applying 27 to a merging society apply to the merged society. 28

 


 

s 105 76 s 105 Financial Institutions Legislation Amendment of transfer of engagements 1 `Effect `316.(1) This section applies on a total transfer of engagements taking 2 effect under section 314 (When transfer of engagements takes effect). 3 `(2) This section also applies on a partial transfer of engagements taking 4 effect under section 314, but only-- 5 (a) subject to the terms on which the transfer takes place; and 6 (b) to the extent necessary to give effect to the transfer. 7 `(3) The transferee society is the successor of the transferor society. 8 `(4) Without limiting subsection (3)-- 9 (a) the members of the transferor society become members of the 10 transferee society; and 11 (b) all assets and liabilities of the transferor society become assets 12 and liabilities of the transferee society without any conveyance, 13 transfer or assignment; and 14 (c) in all documents (including, for example, a contract to which the 15 transferor society was a party), a reference to the transferor 16 society is a reference to the transferee society; and 17 (d) a legal proceeding by or against the transferor society that is not 18 finished when the transfer of engagements takes effect may be 19 continued and finished by or against the transferee society; and 20 (e) the duties, obligations, immunities, rights and privileges applying 21 to the transferor society apply to the transferee society. 22 of certificate of incorporation 23 `Surrender `316A.(1) This section applies if a society proposes-- 24 (a) to merge with a foreign society, and under the proposal, the 25 merged society is to be incorporated in the participating State; or 26 (b) a total transfer of its engagements to a foreign society. 27 `(2) After the proposed merger or transfer has been approved under 28 section 310 (Proposal for merger or transfer of engagements), the society 29 must surrender its certificate of incorporation to the SSA. 30

 


 

s 105 77 s 105 Financial Institutions Legislation Amendment `(3) Upon the merger or transfer of engagements taking effect under the 1 financial institutions legislation of the participating State, the SSA must 2 cancel the registration of the society. 3 `Division 3A--Effect of mergers and transfers of engagements involving 4 only foreign societies 5 for div 3A 6 `Definitions `316B. In this division-- 7 "foreign society" means a body corporate that is a society under the 8 financial institutions legislation of another participating State, whether 9 or not it is registered as a foreign society under Part 11 (Foreign 10 societies). 11 of merger of foreign societies 12 `Effect `316C.(1) This section applies if-- 13 (a) a merger of a foreign society and another foreign society takes 14 effect; and 15 (b) the merged society is registered under the provisions of the 16 financial institutions legislation of a participating State 17 corresponding to-- 18 (i) section 294 (SSA may register merged society); or 19 (ii) section 303 (SSA may register merged society); or 20 (iii) section 311 (SSA may register merged society). 21 `(2) The merged society is the successor of the merging foreign societies. 22 `(3) Without limiting subsection (2)-- 23 (a) the members of each merging foreign society become members 24 of the merged society; and 25 (b) all assets and liabilities of each merging foreign society become 26 assets and liabilities of the merged society without any 27 conveyance, transfer or assignment; and 28

 


 

s 105 78 s 105 Financial Institutions Legislation Amendment (c) in all documents (including, for example, a contract to which a 1 merging foreign society was a party), a reference to a merging 2 foreign society is a reference to the merged society; and 3 (d) a legal proceeding by or against a merging foreign society that is 4 not finished when the merger takes effect may be continued and 5 finished by or against the merged society; and 6 (e) the duties, obligations, immunities, rights and privileges applying 7 to a merging foreign society apply to the merged society. 8 of transfer of engagements between foreign societies 9 `Effect `316D.(1) This section applies if-- 10 (a) there is a total transfer of engagements from a foreign society 11 (the "transferor foreign society") to another foreign society 12 (the "transferee foreign society"); and 13 (b) a certificate of confirmation of the total transfer of engagements is 14 issued under the provisions of the financial institutions legislation 15 of the State in which the transferee foreign society is incorporated 16 corresponding to-- 17 (i) section 295 (Certificate of confirmation (voluntary transfer)); 18 or 19 (ii) section 298 (Certificate of confirmation (transfer by 20 direction)); or 21 (iii) section 304 (Certificate of confirmation (voluntary transfer)); 22 or 23 (iv) section 307 (Certificate of confirmation (transfer by 24 direction)); or 25 (v) section 312 (Certificate of confirmation for total transfer). 26 `(2) This section also applies if-- 27 (a) there is a partial transfer of engagements from a foreign society 28 (also the "transferor foreign society") to another foreign society 29 (also the "transferee foreign society"); and 30 (b) certificates of confirmation of the partial transfer of engagements 31 are issued under the provisions of the financial institutions 32

 


 

s 105 79 s 105 Financial Institutions Legislation Amendment legislation of the State or States in which the foreign societies are 1 incorporated corresponding to-- 2 (i) section 295 (Certificate of confirmation (voluntary transfer)); 3 or 4 (ii) section 298 (Certificate of confirmation (transfer by 5 direction)); or 6 (iii) section 304 (Certificate of confirmation (voluntary transfer)); 7 or 8 (iv) section 307 (Certificate of confirmation (transfer by 9 direction)); or 10 (v) section 313 (Certificate of confirmation for partial transfer); 11 but only-- 12 (c) subject to the terms on which the transfer takes place; and 13 (d) to the extent necessary to give effect to the transfer. 14 `(3) The transferee foreign society is the successor of the transferor 15 foreign society. 16 `(4) Without limiting subsection (3)-- 17 (a) the members of the transferor foreign society become members 18 of the transferee foreign society; and 19 (b) all assets and liabilities of the transferor foreign society become 20 assets and liabilities of the transferee foreign society without any 21 conveyance, transfer or assignment; and 22 (c) in all documents (including, for example, a contract to which the 23 transferor foreign society was a party), a reference to the 24 transferor foreign society is a reference to the transferee foreign 25 society; and 26 (d) a legal proceeding by or against the transferor foreign society that 27 is not finished when the transfer of engagements takes effect may 28 be continued and finished by or against the transferee foreign 29 society; and 30 (e) the duties, obligations, immunities, rights and privileges applying 31

 


 

s 106 80 s 110 Financial Institutions Legislation Amendment to the transferor foreign society apply to the transferee foreign 1 society.'. 2 of s 337 (Schemes of arrangement and reconstruction) 3 Amendment Clause 106. Section 337(2)(d) to (f)-- 4 omit. 5 of pt 9, div 3 (Official management) 6 Omission Clause 107. Part 9, division 3-- 7 omit. 8 of s 341 (Winding-up on certificate of SSA) 9 Amendment Clause 108. Section 341(5)-- 10 omit, insert-- 11 `(5) The liquidator, unless employed in the SSA's office, is entitled to 12 receive an amount of remuneration that the SSA considers appropriate, 13 having regard to the rate of payment that normally would apply for such an 14 appointment.'. 15 of s 342 (Application of Corporations Law to 16 Amendment winding-up) 17 Clause 109. Section 342, `5.5 and 5.6'-- 18 omit, insert-- 19 `5.4A, 5.4B, 5.5, 5.6, 5.7B (other than section 588G) and 5.9'. 20 of s 352 (Self-incrimination) 21 Amendment Clause 110. Section 352(2)-- 22 omit, insert-- 23 `(2) An answer given by an officer to a question put to the officer by an 24 investigator is not admissible in evidence against the officer in a criminal 25

 


 

s 111 81 s 111 Financial Institutions Legislation Amendment proceeding (other than a proceeding in relation to the falsity of the answer) 1 if-- 2 (a) the officer, before giving the answer, claimed that giving the 3 answer might tend to incriminate the officer; and 4 (b) the answer might in fact tend to incriminate the officer. 5 `(3) The fact that a document was produced by an officer to an 6 investigator is not admissible in evidence against the officer in a criminal 7 proceeding (other than a proceeding in relation to the falsity of the 8 document) if-- 9 (a) the officer, before producing the document, claimed that 10 producing the document might tend to incriminate the officer; and 11 (b) producing the document might in fact tend to incriminate the 12 officer.'. 13 of s 364 (Registration) 14 Amendment Clause 111.(1) Section 364(2)(a)-- 15 omit, insert-- 16 `(a) a certificate, not more than 2 months old, of the SSA of the 17 participating State in which the society is incorporated stating that 18 it considers that there is no good reason why the society should 19 not be registered as a foreign society in this State; and'. 20 (2) Section 364(2)(c)-- 21 omit, insert-- 22 `(c) a statement, verified as prescribed, setting out-- 23 (i) the name of the person who is to be the agent of the society 24 in this State; and 25 (ii) the address of the office to be maintained for the society by 26 the society's agent; and 27 (iii) each name under which the society proposes to carry on 28 business in this State; and'. 29 (3) Section 364(3) and (4)-- 30

 


 

s 112 82 s 112 Financial Institutions Legislation Amendment omit, insert-- 1 `(3) If, on due application, the SSA is satisfied that the society is eligible 2 for registration, the SSA must register the society as a foreign society, and 3 issue a certificate of registration in accordance with the regulations. 4 `(4) A society is not eligible for registration under this section unless 5 each name under which it proposes to carry on business in this State-- 6 (a) is identical with a name under which it carries on business in the 7 participating State in which the society is incorporated; and 8 (b) under the AFIC Code, part 6A, has been reserved by AFIC for 9 the society for use in this State.'. 10 of new ss 364A-364E 11 Insertion Clause 112. After section 364-- 12 insert-- 13 14 `Agents `364A.(1) A foreign society must appoint, and ensure that at all times 15 there is appointed, a person as its agent in this State. 16 `(2) A foreign society is taken to have appointed a person as its agent for 17 the purposes of subsection (1) if-- 18 (a) the foreign society lodges with the SSA a memorandum of 19 appointment that-- 20 (i) is duly executed on behalf of the foreign society and states 21 the name of the person; and 22 (ii) is accompanied by a copy of the person's consent to act as 23 the foreign society's agent; 24 (iii) authorises the person to act as the foreign society's agent, 25 including accepting, on the foreign society's behalf, service 26 of process and notices; and 27 (b) the person is an individual resident in the State or a body 28 corporate. 29 `(3) A person whom a foreign society appoints as its agent is the agent of 30 the foreign society until the person-- 31

 


 

s 112 83 s 112 Financial Institutions Legislation Amendment (a) ceases under section 364B (End of appointment of foreign 1 societies' agents) to be the agent; or 2 (b) dies or ceases to exist. 3 of appointment of foreign societies' agents 4 `End `364B.(1) A foreign society, or the person who is the agent of the foreign 5 society, may lodge a written notice with the SSA stating that the person's 6 appointment as agent has terminated, or is to terminate. 7 `(2) If a notice is lodged under subsection (1), the person ceases to be the 8 agent of the foreign society-- 9 (a) at the end of the day of lodgment; or 10 (b) if the notice specifies a day falling after the day of lodgment--the 11 end of the specified day. 12 of agents 13 `Liability `364C. The agent of a foreign society-- 14 (a) is answerable for the doing of all acts, matters and things that the 15 foreign society is required by or under this Code to do; and 16 (b) is personally liable to a penalty imposed on the foreign society for 17 a contravention of this Code if the court or tribunal imposing the 18 penalty is satisfied that the agent should be personally liable. 19 of foreign society 20 `Office `364D.(1) The agent of a foreign society must maintain in this State an 21 office of the society. 22 `(2) A foreign society's office must be open, and attended by the foreign 23 society's agent, or an officer or employee of the agent, in ordinary business 24 hours. 25 `(3) An office is taken to be a foreign society's office in this State for the 26 purposes of this Code only if there is lodged with the SSA a notice advising 27 the address of the office. 28 `(4) The agent of a foreign society may lodge a written notice with the 29

 


 

s 113 84 s 113 Financial Institutions Legislation Amendment SSA stating that the address of the foreign society's office in this State has 1 changed, or is to change. 2 `(5) If a notice is lodged under subsection (4), the address of the foreign 3 society's office in this State is taken to change-- 4 (a) at the end of the day of lodgment; or 5 (b) if the notice specifies a day falling after the day of lodgment--the 6 end of the specified day. 7 of documents 8 `Service `364E.(1) A document may be served on a foreign society by leaving a 9 copy of the document at, or posting it to, the foreign society's office in this 10 State. 11 `(2) Without limiting subsection (1), a document may be served on a 12 foreign society by delivering a copy of the document personally to a person 13 authorised by the foreign society's agent to accept service of documents on 14 behalf of the foreign society. 15 `(3) Nothing in this section affects-- 16 (a) the power of the Court to authorise a document to be served on a 17 foreign society in a way not provided for by this section; or 18 (b) the operation of the law of a State or the Commonwealth 19 authorising a document to be served on a foreign society in a way 20 not provided for by this section.'. 21 of s 366 (SSA to be notified of certain changes) 22 Amendment Clause 113.(1) Section 366(a) to (e)-- 23 omit. 24 (2) Section 366(f) and (g)-- 25 renumber as section 366(a) and (b). 26

 


 

s 114 85 s 117 Financial Institutions Legislation Amendment of s 367 (Balance sheets) 1 Omission Clause 114. Section 367-- 2 omit. 3 of s 369 (Society proposing to register as foreign society) 4 Amendment Clause 115.(1) Section 369(1), from `that it is complying' to `the standard as 5 varied.'-- 6 omit, insert-- 7 `stating that the SSA considers that there is no good reason why the 8 society should not be registered as a foreign society in the other participating 9 State.'. 10 (2) Section 369(2)-- 11 omit, insert-- 12 `(2) The SSA must issue the certificate to the society unless it is of the 13 opinion that there is good reason why the society should not be registered as 14 a foreign society in the other participating State.'. 15 of new s 369A 16 Insertion Clause 116. Part 11, after section 369-- 17 insert-- 18 to provide certain documents 19 `SSA `369A. The SSA, on request by the SSA of a participating State in which 20 a foreign society is registered as a society must, without charge, provide 21 copies of any public documents that are held by the SSA in accordance with 22 section 71 (Public office of SSA and inspection of documents).'. 23 of s 374 (Effect of incorporation) 24 Amendment Clause 117. Section 374(a) to (c)-- 25 omit, insert-- 26

 


 

s 118 86 s 120 Financial Institutions Legislation Amendment `(a) has a common seal; and 1 (b) may sue and be sued in its corporate name.'. 2 of s 379 (Reviewable decisions) 3 Amendment Clause 118. Section 379-- 4 insert-- 5 `(3) Also, subsection (1) does not apply to a decision made for 6 section 382(4) (SSA to review certain decisions) to confirm or vary a 7 decision (the "original decision"), but, subject to subsection (2), does 8 apply to-- 9 (a) the original decision as confirmed or varied; and 10 (b) a decision made for section 382(4) to reverse a decision.'. 11 of s 382 (SSA to review certain decisions) 12 Amendment Clause 119. Section 382-- 13 insert-- 14 `(1A) However, a person may not request the SSA to review-- 15 (a) a decision made for subsection (4) to confirm, vary or reverse a 16 decision (the "original decision"); or 17 (b) the original decision as confirmed or varied. 18 `(1B) A request under subsection (1) must be made within 1 month after 19 the person is given written notice of the decision.'. 20 of s 410 (Secrecy) 21 Replacement Clause 120. Section 410-- 22 omit, insert-- 23 24 `Secrecy `410.(1) In this section-- 25 "court" includes a tribunal, authority or person having the power lawfully 26

 


 

s 120 87 s 120 Financial Institutions Legislation Amendment to require the production of documents or the answering of questions. 1 "financial sector supervisory agency" means a person or body prescribed 2 by regulation to be a financial sector supervisory agency for this 3 section. 4 "Government agency" means an agency of the State or the 5 Commonwealth, and includes a body prescribed by regulation to be an 6 agency of a State or the Commonwealth. 7 "law enforcement agency" means a body prescribed by regulation to be a 8 law enforcement agency for the purposes of this section. 9 "protected document" means a document that-- 10 (a) contains information that concerns a person; and 11 (b) is obtained or made by a person to whom this section applies in 12 the course of, or because of, the person's duties under or in 13 relation to the financial institutions legislation. 14 "protected information" means information that-- 15 (a) concerns a person; and 16 (b) is disclosed to, or obtained by, a person to whom this section 17 applies in the course of, or because of, the person's duties under 18 or in relation to the financial institutions legislation. 19 `(2) This section applies to a director or member of the SSA, and to a 20 person who is or has been appointed or employed by the SSA for the 21 purposes of carrying out any duties under the financial institutions 22 legislation. 23 `(3) A person to whom this section applies must not-- 24 (a) make a record of protected information; or 25 (b) whether directly or indirectly, disclose to a person protected 26 information concerning another person; 27 unless the record is made, or the information disclosed-- 28 (c) under or for the purposes of the financial institutions legislation; 29 or 30 (d) in the performance of duties, as a person to whom this section 31 applies, under or in relation to the financial institutions legislation. 32

 


 

s 121 88 s 121 Financial Institutions Legislation Amendment Maximum penalty--$25 000. 1 `(4) Subsection (3) does not prevent a person to whom this section 2 applies from disclosing protected information or producing a protected 3 document, to-- 4 (a) a court; or 5 (b) AFIC; or 6 (c) the SSA of another participating State; or 7 (d) a financial sector supervisory agency; or 8 (e) a law enforcement agency; or 9 (f) a Minister or a nominee of a Minister; or 10 (g) a Government agency; or 11 (h) to the extent the protected information or document is about a 12 society--the society's auditor; or 13 (i) to the extent the protected information or document is about a 14 society and is relevant to the period of office of a former auditor 15 of the society--the former auditor. 16 `(5) Subsection (3) does not prohibit a person to whom this section 17 applies from disclosing protected information or producing a protected 18 document relating to the affairs of a person if the person agrees in writing to 19 the disclosure of the protected information or the production of the protected 20 document. 21 `(6) A person to whom this section applies cannot be required to disclose 22 to a court any protected information or to produce to a court a protected 23 document except when it is necessary to do so for the purposes of the 24 financial institutions legislation.'. 25 of s 411 (Powers about money of members who have 26 Amendment died) 27 Clause 121.(1) Section 411(1), after `an amount'-- 28 insert-- 29 `(not exceeding the amount prescribed by regulation)'. 30

 


 

s 122 89 s 125 Financial Institutions Legislation Amendment (2) Section 411(1)(c)-- 1 omit, insert-- 2 `(c) in payment to anyone else who is, in the society's opinion, 3 entitled to the amount, having regard to the will of the deceased 4 person or, if there is no will, the laws of intestacy.'. 5 (3) Section 411(2)-- 6 omit. 7 of ss 412-413 8 Omission Clause 122. Sections 412 and 413-- 9 omit. 10 of schs 1 and 2 11 Omission Clause 123. Schedules 1 and 2-- 12 omit. 13 PART 5--AMENDMENT OF FINANCIAL 14 INSTITUTIONS (QUEENSLAND) ACT 1992 15 amended in pt 5 16 Act Clause 124. This part amends the Financial Institutions (Queensland) Act 1992. 17 of s 6 (Interpretation of some expressions in the 18 Amendment Financial Institutions (Queensland) Code and the Financial 19 Institutions (Queensland) Regulations) 20 Clause 125. Section 6(1)-- 21 insert-- 22

 


 

s 126 90 s 128 Financial Institutions Legislation Amendment ` "Friendly Societies Code" means the Friendly Societies (Queensland) 1 Code.'. 2 of s 22 (Amount credited to Credit Societies Guarantee 3 Amendment Fund) 4 Clause 126. Section 22(2), `is credit'-- 5 omit, insert-- 6 `is credited'. 7 PART 6--AMENDMENT OF PUBLIC SERVICE ACT 8 1996 9 amended in pt 6 10 Act Clause 127. This part amends the Public Service Act 1996. 11 of sch 2 (Amendments) 12 Amendment Clause 128. Schedule 2, amendments of Australian Financial Institutions 13 Commission Code-- 14 omit. 15 16

 


 

91 Financial Institutions Legislation Amendment CHEDULE 1 S MENDMENTS FOR `FINANCIAL INSTITUTION' 2 A AND `FINANCIAL INSTITUTIONS' 3 section 34 4 PART 1--PROVISIONS IN WHICH `FINANCIAL 5 INSTITUTION' IS OMITTED AND `FISCAL BODY' IS 6 INSERTED 7 section 3, definition "group" 8 section 31(1) 9 section 34(2) 10 section 47C(1)(a) and (b) and (2) to (4) 11 section 55(2) 12 section 120(2) and (4) to (6) 13 section 132 14 section 139(f) 15 section 143(2) 16 section 156(2)(a) 17 PART 2--PROVISIONS IN WHICH `FINANCIAL 18 INSTITUTIONS' IS OMITTED AND `FISCAL 19 BODIES' IS INSERTED 20 section 3, definition "prudential standard", paragraphs (a) and (b) 21 section 6, (other than in the words `financial institutions scheme' and 22

 


 

92 Financial Institutions Legislation Amendment `financial institutions agreement') 1 section 9(1)(a), (2)(a) to (d) and (g) 2 section 10 (other than in the words `financial institutions scheme') 3 part 2, division 2 4 section 15(a), (b), (c)(i) and (g) to (i) 5 section 16(2) 6 section 18 7 section 28(1)(a), (c), (d) (other than in the words `financial institutions 8 scheme'), (f) and (g) (other than in the words `financial institutions 9 scheme') 10 section 33(6) 11 section 35 12 section 47C(3)(a) and (b) and (4) 13 section 49(1)(a) 14 section 52(4)(a) 15 section 65(1) 16 section 85(1)(a) and (b) 17 section 94(1) 18 section 115 19 section 119(1), (2) and (4) 20 section 120(2)(b) and (3) 21 section 140(2)(b) 22 section 164(1) 23 24 State of Queensland 1997

 


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