Source: https://www.legislation.gov.au/Details/C2006B00143/Supplementary%20Explanatory%20Memorandum/Text
Timestamp: 2018-10-21 09:45:29
Document Index: 226185138

Matched Legal Cases: ['art 2', 'art 5', 'art 2', 'art 5', 'art 2', 'art 2', 'art 7', 'art 7', 'art 12', 'art 15', 'art 15', 'art 4', 'art 15', 'art 15', 'art 6']

1.1. The amendments introduce new provisions into the CATSI Bill dealing with the transfer and amalgamation of CATSI corporations. These provisions will allow a body corporate registered under another law to transfer its registration to the CATSI Bill if certain requirements are satisfied. Similarly, it will allow a CATSI corporation to transfer its registration to another law of the Commonwealth, for example the Corporations Act 2001, or a law of a state or a territory if certain requirements are satisfied. Other provisions will allow a CATSI corporation to amalgamate with another CATSI corporation, either by an administrative process approved by the Registrar or by applying to a Court. These measures support the policy of encouraging responsible incorporation under the CATSI Bill.
CORPORATIONS (ABORIGINAL AND TORRES STRAIT ISLANDER) BILL 2005. ii
1. Outline. ii
2. Contents. iii
3. Abbreviations. iii
4. Notes on individual amendments. 1
Amendment 5—Division 22—Application to register existing body corporate under Part 2‑3
4.14. Amendment 13 inserts new subsections (3)-(5) into proposed section 26-1. These subsections will only apply to an amalgamation application under proposed section 23-1. Proposed subclause (4) provides that the Registrar must not grant an amalgamation application if a substantial creditor has objected to the proposed amalgamation under proposed subsection 29‑18(3) and not withdrawn it. Proposed subclause (5) sets out some additional matters that the Registrar may consider in deciding whether to grant an amalgamation application. These new subsections support the distinction between amalgamations which are appropriate for the Registrar to process administratively and those which are more appropriately conducted under the supervision of a Court. If the Registrar decides not to grant an amalgamation application, the applicants may still apply to a Court for amalgamation of the CATSI corporations under the applied provisions of Part 5.1 of the Corporations Act.
4.20. This amendment inserts proposed section 29-18 into Division 29 of the CATSI Bill. It establishes the creditor notice requirements that an amalgamated corporation must satisfy to be registered under Part 2-3 of the CATSI Bill. It protects the interests of a substantial creditor of an amalgamating corporation who may be materially prejudiced as a result of the amalgamation. A substantial creditor of an amalgamating corporation will be a person who is owed an unsecured debt, or debts, by an amalgamating corporation that exceeds an amount which will be prescribed in the regulations. The Registrar must not grant an amalgamation application if a substantial creditor has objected to the proposed amalgamation under proposed subsection 29‑18(3) and has not withdrawn it. However, the amalgamation could still be achieved by the amalgamating corporations applying to a Court under the applied provisions of Part 5.1 of the Corporations Act.
Amendment 30—Section 42-3—Effect of registration of existing body corporate under Part 2‑3
4.26. This amendment inserts proposed section 42-4 into the CATSI Bill which deals with the effect of the registration of an amalgamated corporation under Part 2-3. Proposed subsection 42‑4(2) provides that the registration of an amalgamated corporation, after applying under proposed section 23-1, creates a new CATSI corporation which comes into existence as a body corporate with perpetual succession at the beginning of the day on which it is registered.
4.47. These amendments remove the penalties and offences currently in proposed section 150‑20, which will be a replaceable rule. Replaceable rules—that is, rules which may be modified by a CATSI corporation’s constitution—should not contain any penalties or offences and these amendments will correct this anomaly.
Amendments 74-75—Division 249—Resignation, retirement or removal of directors
4.63. These amendments clarify the process by which a director may be removed by resolution in general meeting if the director has objected to his or her removal by fellow directors. Proposed section 249-20 provides that if a director objects to being removed for failing to attend three directors’ meetings under proposed section 249-15, the director may be removed by resolution in general meeting. The relationship between this provision and proposed section 249‑10, which provides for the members’ general power to remove a director, is unclear. As section 249-10 contains certain procedural safeguards not contained in section 249-20, these amendments expressly provide that any removal of a director by members should be in accordance with the procedural requirements of section 249-10. These amendments will mean that, under the CATSI Bill, there is only one standard process for removing a director at a general meeting.
Amendment 83—Section 304-5—Notice of name and address of directors and secretaries to the Registrar
4.77. This amendment inserts a reference to ‘regulations made for the purposes of Part 7-2 or 7‑3’ in proposed section 317-1, which provides the introduction to Chapter 7. This amendment is consequential to the changes made to the exemption provisions of Part 7-4 by amendment 102.
4.81. These amendments change proposed subparagraph 336-1(1)(b)(iii) and paragraph 336‑1(6)(a) by providing that the Registrar may determine that a particular CATSI corporation must provide an additional report, or a general report or section 333-5 report, to its members (whether generally or on request). Both these amendments result from the changes made to Division 342 by amendments 96-101.
4.90. This amendment inserts a new provision into Division 453 of the CATSI Bill. Proposed section 453-10 is based on proposed section 511-1 and will provide for the remuneration of an authorised officer who examines the books of a CATSI corporation or a related body corporate. Proposed subsection 453-10(3) outlines the typical circumstance that the Commonwealth will normally pay for the authorised officer’s remuneration, charges and expenses. Proposed subsection 453-10(4) gives the Registrar the capacity to determine that the corporation or a related body corporate bear some or all of the costs of the examination. This might be appropriate, for example, if the CATSI corporation has requested the examination for diagnostic or other purposes. Proposed subsection 453-10(5) provides that this section does not apply to an authorised officer who is an APS employee or Commonwealth officer. This is because an APS officer or a Commonwealth officer will normally have their remuneration dealt with in other Commonwealth laws and instruments—for example, determinations made under the Public Service Act 1999. The definition of ‘Commonwealth officer’ in proposed subsection 453-10(6) is not intended to include persons who are retained by the Commonwealth as consultants or contractors.
4.93. This amendment inserts proposed subsections 511-1(5) and (6) into proposed section 511‑1. These provisions, based on proposed subsections 453-10(5) and (6), clarify that this section, which deals with the remuneration of a special administrator, does not apply to a special administrator who is an APS employee or Commonwealth officer. This is because other Commonwealth laws and instruments normally deal with the remuneration of APS and Commonwealth officers—for example, determinations made under the Public Service Act 1999. The definition of ‘Commonwealth officer’ in proposed subsection 511-1(6) is not intended to include persons who are retained by the Commonwealth as consultants or contractors.
4.107. This amendment inserts a new section 546-45 into Part 12-1 of the CATSI Bill. It provides that the regulations may modify the provisions dealing with the deregistration of a CATSI corporation if it holds land for the benefit of Aboriginal persons or Torres Strait Islanders under certain laws, including the Aboriginal Land Act 1991 (Qld). The Queensland Government is currently reviewing the Aboriginal Land Act 1991 (Qld). As part of this review, it proposes to amend this Act to permit the Queensland Government to grant land for the benefit of Aboriginal persons, in trust, to corporations which may be registered under the CATSI Bill. Because of concerns about the fate of land held in trust by a deregistered corporation, this regulation-making power will allow the prescribing of the process to be followed if winding-up proceedings are initiated for a CATSI corporation holding land in trust granted under the Aboriginal Land Act 1991 (Qld). The regulation making power is also broad enough to cover other state and territory land rights schemes if necessary in the future, for example, the Torres Strait Islander Land Act 1991 (Qld). Proposed subsection 546-45(2) will provide that any regulations made to modify these provisions must not increase the maximum penalty for any offence or widen the scope of any offence. Subsection 546-45(3) provides that this proposed section does not limit proposed section 633-5 which deals with regulations for registered native title bodies corporate.
4.112. This amendment inserts new table items 16A and 16B into proposed section 617-1. Item 16A provides that a decision by the Registrar to refuse to make a determination exempting a CATSI corporation or its directors from an exemptible provision of Chapter 4 under proposed subsection 187-5(1), is a reviewable decision for the purposes of proposed Part 15-4 of the CATSI Bill. Table item 16B provides that a decision by the Registrar to revoke, vary or suspend a determination exempting a CATSI corporation or its directors from an exemptible provision of Chapter 4 under proposed subsection 187-5(5), is a reviewable decision for the purposes of proposed Part 15-4 of the CATSI Bill. This amendment results from the insertion of new Part 4‑6 into the CATSI Bill by amendment 67.
4.114. This amendment inserts new table items 27A and 27B into proposed section 617-1. Item 27A provides that a decision by the Registrar to refuse to make a determination exempting a CATSI corporation or its directors from an exemptible provision of Chapter 6 under proposed subsection 310-5(1), is a reviewable decision for the purposes of proposed Part 15-4 of the CATSI Bill. Table item 27B provides that a decision by the Registrar to revoke, vary or suspend a determination exempting a CATSI corporation or its directors from an exemptible provision of Chapter 6 under proposed subsection 310-5(5), is a reviewable decision for the purposes of proposed Part 15-4 of the CATSI Bill. This amendment results from the insertion of new Part 6‑8 into the CATSI Bill by amendment 84.