Banks (Shareholdings) Amendment Act 1985 (Cth)

Banks (Shareholdings) Amendment Act 1985

No. 25 of 1985

An Act to amend the Banks (Shareholdings) Act 1972, and for related purposes

[Assented to 22 May 1985]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c. 1. (1) This Act may be cited as the Banks (Shareholdings) Amendment Act 1985. (2) The Banks (Shareholdings) Act 19721 is in this Act referred to as the Principal Act.

Commencement 2. This Act shall come into operation on the day on which it receives the Royal Assent.

3. After section 2 of the Principal Act the following section is inserted:

Crown to be bound "3. (1) This Act binds the Crown in right of the Commonwealth, of each of the States, of the Northern Territory and of Norfolk Island.

"(2) Nothing in this Act renders the Crown liable to be prosecuted for an offence.".

Interpretation 4. Section 6 of the Principal Act is amended by inserting "a body politic or" after "includes" in the definition of "corporation" in sub-section (1).

Associated shareholders 5. Section 9 of the Principal Act is amended by inserting in paragraph (3) (a) "(other than a body politic)" after "corporation" (first occurring).

Limitation of shareholdings in banks 6. Section 10 of the Principal Act is amended— (a) by omitting sub-sections (1) and (2) and substituting the following sub-sections: "(1) Subject to sub-sections (2d) and (3), a person shall not have an interest in one or more voting shares of a bank if the nominal amount of that share or the aggregate of the nominal amounts of those shares exceeds 10% of the aggregate of the nominal amounts of all the voting shares of the bank. "(2) The Treasurer may, on application by a person, exempt the person, in writing, from compliance with sub-section (1) in respect of voting shares of a bank. "(2a) The Treasurer shall not refuse to give an exemption to a person under sub-section (2) from compliance with sub-section (1) in respect of voting shares of a bank unless the Treasurer is satisfied that the giving of the exemption would not be in the national interest. "(2b) Where an exemption has been given to a corporation under sub-section (2) from compliance with sub-section (1) in respect of voting shares of a bank, the Treasurer may, on application by the corporation, exempt the persons who are from time to time relevant officers of the corporation from compliance with sub-section (1) in respect of voting shares of the bank. "(2c) An application under sub-section (2b) may accompany an application under sub-section (2). "(2d) Subject to sub-section (3), a person who is exempt from compliance with sub-section (1) in respect of voting shares of a bank shall not have an interest in one or more voting shares of the bank if the nominal amount of that share or the aggregate of the nominal amounts of those shares exceeds 15% of the aggregate of the nominal amounts of all the voting shares of the bank. "(2e) The Treasurer may, by notice in writing given to a person, revoke an exemption given to the person under sub-section (2) if the Treasurer is satisfied that to do so is in the national interest, and, where