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Corporations Regulations 2001

Authoritative Version
  • - F2016C00736
  • In force - Superseded Version
  • View Series
SR 2001 No. 193 Regulations as amended, taking into account amendments up to Tax and Superannuation Laws Amendment (2016 Measures No. 2) Regulation 2016
Principal Regulations. These Regulations repeal the Corporations Regulations 1990 and the Partnerships and Associations Application Order 1999 (No. 1)
Administered by: Treasury
Registered 12 Jul 2016
Start Date 01 Jul 2016
End Date 28 Oct 2016
Table of contents.

Corporations Regulations 2001

Statutory Rules No. 193, 2001

made under the

Corporations Act 2001

Compilation No. 124

Compilation date:                              1 July 2016

Includes amendments up to:            F2016L00710

Registered:                                         12 July 2016

This compilation is in 7 volumes

Volume 1:       regulations 1.0.01–6D.5.02

Volume 2:       regulations 7.1.02–7.6.08E

Volume 3:       regulations 7.7.01–8.4.02

Volume 4:       regulations 9.1.01–12.9.03

Volume 5:       Schedules 1, 2 and 2A

Volume 6:       Schedules 3–12

Volume 7:       Endnotes

Each volume has its own contents

 

This compilation includes a commenced amendment made by SLI No. 101, 2013

About this compilation

This compilation

This is a compilation of the Corporations Regulations 2001 that shows the text of the law as amended and in force on 1 July 2016 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

  

  

  


Contents

Schedule 3—Specified offices                                                                            1

Schedule 4—Prescribed amounts                                                                  3

Schedule 5C—Conduct of auditor—relevant relationships  5

1............ Money owed—debt............................................................................ 5

2............ Money owed—deposit account........................................................... 5

3............ Public company auditor (annual appointments at AGMs to fill vacancies)               6

Schedule 6—Availability of names                                                              7

Part 1—Rules for ascertaining whether names are identical                      7

Part 2—Names unacceptable for registration                                                      8

Part 3—Restricted words and phrases                                                                   10

Part 4—Consent required to use restricted words and phrases              11

Part 5—Names relating to financial institutions for use of which consent is required    12

Schedule 7—Exemptions from requirements to set out certain corporate particulars                                                                                           13

7001...... Definitions for Schedule 7................................................................ 13

7002...... Exemption for certain IATA documents........................................... 13

7003...... Exemption for bills of lading and sea waybills.................................. 13

7004...... Exemptions—quotation of ACNs and ARBNs................................ 14

Schedule 7A—Content of annual transparency report       15

Part 1—Interpretation for Schedule 7A                                                                15

7A101... Interpretation..................................................................................... 15

Part 2—Prescribed information for audit firm or authorised audit company     16

Part 3—Prescribed information for individual auditor                               17

Schedule 8—Schemes of arrangement under Part 5.1 of the Act    18

Chapter 5—External administration                                                                       18

Part 1—Interpretation and application                                                            18

Part 2—Prescribed information relating to proposed compromise or arrangement with creditors or class of creditors                                                      19

Part 3—Prescribed information relating to proposed compromise or arrangement with members or a class of members                                                  20

Part 4—Prescribed information relating to proposed compromise or arrangement with members or class of members for transfer to a trustee 24

Schedule 8A—Deed of company arrangement—prescribed provisions  25

1............ Administrator deemed agent of company.......................................... 25

2............ Powers of administrator.................................................................... 25

3............ Termination of deed where arrangement fails.................................... 27

4............ Priority.............................................................................................. 27

5............ Discharge of debts............................................................................ 27

6............ Claims extinguished.......................................................................... 27

7............ Bar to creditors’ claims..................................................................... 27

8............ Making claims................................................................................... 28

10.......... Lodging of accounts.......................................................................... 28

11.......... Committee of inspection.................................................................... 28

12.......... Termination of deed where arrangement achieves purpose............... 29

Schedule 8AA—Trustee companies                                                          30

Schedule 8AB—Prescribed State and Territory provisions for paragraph 601RAE (4)(a) of the Act                      31

Schedule 8AC—Prescribed State and Territory laws and provisions for paragraph 601RAE(4)(b) of the Act—estate administration                                                                                                                         32

Schedule 8AD—Prescribed State and Territory laws and provisions for paragraph 601RAE(4)(b) of the Act                       33

Schedule 8AE—Relevant State and Territory provisions 35

Schedule 8B—Option contract—prescribed indexes              36

Schedule 8C—Modifications of Part 7.5 of the Act—compensation regimes                                                                                                                         38

Schedule 8D—Modifications of Division 9 of Part 7.6 of the Act   42

Schedule 9—Companies authorised to effect transfers under Part 7.11 of the Act                                                                                                                49

Schedule 10—Disclosure of fees and other costs                         50

Part 1—Interpretation                                                                                                      50

101........ Definitions........................................................................................ 50

102........ Management costs............................................................................. 52

103........ Transactional and operational costs................................................... 53

104........ Indirect cost ratio............................................................................... 53

Part 2—Fees and Costs Template, example of annual fees and costs and Consumer Advisory Warning for Product Disclosure Statements                                   54

Division 1—The fees and costs template for superannuation products 54

201........ Template for superannuation products.............................................. 54

Division 2—The fees and costs template for managed investment products       55

202........ Template for a multiple fee structure—managed investment products 55

202A..... Template for single fee structure—managed investment products..... 56

Division 3—How to fill in the template                                                             58

203........ The preamble..................................................................................... 58

204........ Column 2—presentation of amounts................................................. 58

205........ Column 2—include information for each MySuper product or investment option   58

206........ Presentation of multiple fee payment options.................................... 59

207........ Column 3—how and when fees and costs are payable..................... 59

208........ Other material to be included in the template..................................... 59

Division 4—Additional explanation of fees and costs                                60

209........ Matters to be included as additional explanation of fees and costs.... 60

Division 4A—Defined fees for superannuation products                        62

209A..... Defined fees for superannuation products......................................... 62

Division 5—Example of annual fees and costs                                              64

210........ Example of annual fees and costs...................................................... 64

211........ Superannuation products—Example of annual fees and costs for a MySuper product            64

212........ Managed investment products—Example of annual fees and costs for a balanced investment option.......................................................................................................... 64

213........ Defined benefit funds........................................................................ 65

Division 6—How to fill in the example of annual fees and costs         66

214........ Fees and costs must be ongoing amounts......................................... 66

214A..... Example of annual fees and costs for a MySuper product—lifecycle MySuper product          66

215........ Minimum entry balance rule.............................................................. 66

216........ Exit fees............................................................................................ 66

217........ Contribution fees............................................................................... 66

218........ Administration fees and investment fees for a superannuation product 67

218A..... Management costs for a managed investment product...................... 67

219........ Withdrawal fees and exit fees............................................................ 68

220........ If there is no generic MySuper product or balanced investment option 68

Division 7—Consumer Advisory Warning                                                     69

221........ Consumer advisory warning............................................................. 69

222........ Where to place the Consumer Advisory Warning............................. 69

Part 3—Fees and costs in periodic statements                                                    70

Division 1—Other Management Costs                                                              70

301........ Indirect costs related to investment and administration of accounts... 70

Division 2—Total fees                                                                                                71

302........ Total of fees in the periodic statement............................................... 71

Division 3—Additional Explanation of Fees and Costs                            72

303........ Matters to be included as additional explanation of fees and costs.... 72

Schedule 10A—Modifications of Part 7.9 of the Act              73

Part 1—Modifications relating to sub‑plans                                                        73

Part 2—Modifications relating to Product Disclosure Statements for RSA products     74

Part 3—Modifications relating to insurance options under contract associated with superannuation interest                                                                                74

Part 5A—Modifications for margin loan                                                              76

Part 5B—Modifications for superannuation products to which Subdivision 4.2B of Division 4 of Part 7.9 applies                                                                     78

Part 5C—Modifications for simple managed investment scheme          80

Part 6—Modifications relating to application forms and Product Disclosure Statements for standard employer‑sponsor arrangements and successor funds               82

Part 6A—Modifications relating to MySuper measures                              83

Part 7—Modifications relating to life pensioners, members subject to compulsory protection of small amounts and members with small amounts that are expected to grow quickly                                                                                                                     84

Part 8—Modifications relating to periodic statements for RSA providers             86

Part 9—Modifications relating to periodic statements for superannuation entities and RSA providers                                                                                                                88

Part 10—Modifications relating to ongoing disclosure of material changes and significant events in relation to superannuation products and RSAs       89

Part 11—Modifications relating to charges for information requested 91

Part 12—Modifications relating to information when member leaves a fund      92

Part 13—Modifications relating to exceptions to exit reporting period provisions            93

Part 14—Modifications relating to obligation to give information about financial products                                                                                                                                      94

Part 15—Modifications for confirmation of transactions                           96

Part 16—Modifications relating to reporting periods                                    97

Part 17—Modifications relating to application forms for specified superannuation products                                                                                                                                      98

Part 18—Modification of Part 7.9 of the Act—New Zealand offer documents replace Product Disclosure Statements where an offer relates to interests in a New Zealand managed investment scheme                                                                      99

Part 19—Modifications for carbon units, Australian carbon credit units and eligible international emissions units                                                                    100

Schedule 10AA—Modifications of the Act in relation to their application in respect of a recognised offer or a proposed offer of securities that may become a recognised offer                                   111

Part 1—Modification of Part 6D.2 of the Act—disclosure to investors not required for recognised offer under Chapter 8                                                        111

Part 2—Modification of Part 7.9 of the Act—disclosure to investors not required for recognised offer under Chapter 8                                                        112

Schedule 10BA—Modifications of the Act relating to Short‑Form Product Disclosure Statements                                                            114

Part 1—Modifications of Part 7.7 of the Act                                                    114

Part 2—Modifications of Part 7.8 of the Act                                                    115

Part 3—Modifications of Part 7.9 of the Act                                                    116

Schedule 10C—Form and content of Product Disclosure Statement—margin loan                                                                                                           125

1............ Length and font size for Product Disclosure Statement for margin loan.. 125

2............ Minimum content of Product Disclosure Statement for margin loan 125

3............ Contents of section 1 (About [name of provider of the margin loan] and [name of margin loan product])........................................................................................................ 126

4............ Contents of section 2 (Benefits of [name of margin loan product]). 127

5............ Contents of section 3 (How [name of margin loan product] works) 127

6............ Contents of section 4 (What is a margin call?)................................ 128

7............ Contents of section 5 (The risk of losing money)........................... 129

8............ Contents of section 6 (The costs).................................................... 129

9............ Contents of section 7 (How to apply)............................................. 130

Schedule 10D—Form and content of Product Disclosure Statement—superannuation product to which Subdivision 4.2B of Division 4 of Part 7.9 applies                                                                     131

1............ Length and font size for Product Disclosure Statement for superannuation product                131

2............ Minimum content of Product Disclosure Statement for superannuation product      131

3............ Contents of section 1 (About [name of superannuation product]). 132

4............ Contents of section 2 (How super works)...................................... 133

5............ Contents of section 3 (Benefits of investing with [name of superannuation product])             133

6............ Contents of section 4 (Risks of super)............................................ 134

7............ Contents of section 5 (How we invest your money)....................... 134

8............ Contents of section 6 (Fees and costs)............................................ 136

9............ Contents of section 7 (How super is taxed).................................... 138

10.......... Contents of section 8 (Insurance in your super).............................. 138

11.......... Contents of section 9 (How to open an account)............................. 140

Schedule 10E—Form and content of Product Disclosure Statement—simple managed investment scheme                                          141

1............ Length and font size for Product Disclosure Statement for simple managed investment scheme........................................................................................................ 141

2............ Minimum content of Product Disclosure Statement for simple managed investment scheme   141

3............ Contents of section 1 (About [name of responsible entity])............ 142

4............ Contents of section 2 (How [name of simple managed investment scheme] works)                143

5............ Contents of section 3 (Benefits of investing in [name of simple managed investment scheme])........................................................................................................ 143

6............ Contents of section 4 (Risks of managed investment schemes)...... 143

7............ Contents of section 5 (How we invest your money)....................... 144

8............ Contents of section 6 (Fees and costs)............................................ 146

9............ Contents of section 7 (How managed investment schemes are taxed) 148

10.......... Contents of section 8 (How to apply)............................................. 148

Schedule 10D—Persons who are not covered by section 1433 of the Act                                                                                                                       149

Schedule 12—ASIC transitional standards                                    151


Schedule 3Specified offices

(regulation 6.2.02)

  

 

Column 1

Column 2

Column 3

Column 4

Item

Office

Law

Jurisdiction

1

Treasurer

 

Commonwealth

2

Trustee

Parts IV, X and XI of the Bankruptcy Act 1966

Commonwealth

3

Chairperson of the Australian Securities and Investments Commission

Australian Securities and Investments Commission Act 2001

Commonwealth

4

Deputy Chairperson of the Australian Securities and Investments Commission

Australian Securities and Investments Commission Act 2001

Commonwealth

5

Member of the Australian Securities and Investments Commission

Australian Securities and Investments Commission Act 2001

Commonwealth

7

Member of the Takeovers Panel

Australian Securities and Investments Commission Act 2001

Commonwealth

8

Treasurer

 

Western Australia

9

Commissioner for Corporate Affairs

 

Western Australia

10

Public Trustee

Public Trustee Act 1941

Western Australia

11

Master of the Supreme Court

Supreme Court Act 1935

Western Australia

12

Registrar of the Supreme Court

Supreme Court Act 1935

Western Australia

13

Treasurer

 

Victoria

14

Commissioner for Corporate Affairs

 

Victoria

15

Public Trustee

Public Trustee Act 1958

Victoria

16

Master of the Supreme Court

Supreme Court Act 1958

Victoria

17

Treasurer

 

New South Wales

18

Public Trustee

Public Trustee Act 1913

New South Wales

19

Master

Division 1 of Part VIII of the Supreme Court Act 1970

New South Wales

20

Supervisor of Loan Fund Companies

Loan Fund Companies Act 1976

New South Wales

21

Protective Commissioner

Mental Health Act 1958

New South Wales

22

Treasurer

 

Queensland

23

Commissioner for Corporate Affairs

 

Queensland

24

Public Trustee

Public Trustee Act 1978

Queensland

25

Registrar

Supreme Court Acts 1861‑1980

Queensland

26

Treasurer

 

South Australia

27

Curator of Prisoners Property

Criminal Law Consolidation Act 1935‑80

South Australia

28

Public Trustee

Administration and Probate Act 1919‑1980

South Australia

29

Master or accountant

Supreme Court Act 1935‑1980

South Australia

30

Administrator

Chapter XLIX of the Criminal Code

Tasmania

31

Treasurer

 

Tasmania

32

Commissioner for Corporate Affairs

 

Tasmania

33

Public Trustee

Public Trustee Office Act 1930

Tasmania

34

Registrar of the Supreme Court

Supreme Court Act 1959

Tasmania

35

Treasurer

 

Australian Capital Territory

36

Public Trustee

Administration and Probate Ordinance 1929 and the Public Trustee Act 1985

Australian Capital Territory

37

Registrar of the Supreme Court

Australian Capital Territory Supreme Court Act 1933

Commonwealth

38

Master of the Supreme Court

Australian Capital Territory Supreme Court Act 1933

Commonwealth

39

Treasurer

 

Northern Territory

40

Public Trustee

Public Trustee Act 1979

Northern Territory

41

Master of the Supreme Court

 

Northern Territory

42

Commissioner for Corporate Affairs

Companies (Administration) Act 1986

Northern Territory

Schedule 4Prescribed amounts

(regulation 1.1.01)

  

 

Column 1

Column 2

Column 3

Item

Matter

Amount ($)

1

Inspection of registers for the purposes of:

 

 

(a) subsection 173(2) or subsection 672DA (7):

 

 

(i) if a register is not kept on a computer—for each inspection

5.00

 

(ii) if a register is kept on a computer—for each inspection

a reasonable amount that does not exceed the marginal cost to the company of providing an inspection

1AA

Supply of copies for subsection 173(3)

In addition:

250.00

 

(a) for each member about whom information is provided in excess of 5 000 members and up to 19 999 members

0.05

 

(b) for each member about whom information is provided at 20 000 members or more

0.01

1A

Inspection of registers or records for:

 

 

(a) subsection 271(3)

 

 

(b) subsection 668A(3);

 

 

for each inspection

5.00

2

Supply under section 139 by a company to a member of the company of a copy of the company’s constitution

10.00

3

Supply of copies for subsection 672DA (8):

 

 

(a) if a register is not kept on a computer—for each page, or part of a page, not exceeding international sheet size A4 of the copy supplied or, at the option of the supplier, for each 100 words or part of 100 words

0.50

 

(b) if a register is kept on a computer—for each inspection

a reasonable amount that does not exceed the marginal cost to the company of providing a copy

3A

Supply of copies for:

 

 

(a) subsection 246G (3)

 

 

(b) subsection 251B (4)

 

 

(ba) subsection 253N (4)

 

 

(c) subsection 271(4)

 

 

(d) subsection 812(3)

 

 

(e) paragraph 1178(3)(a);

 

 

for each page, or part of a page, not exceeding international sheet size A4 of the copy supplied or, at the option of the supplier, for each 100 words or part of 100 words

0.50

4

Payment for each name and address provided under subsection 641(5)

0.10

5

For compliance with a direction under section 672A

5.00

6

Replacement of lost or destroyed certificate for paragraph 1070D(4)(a)

10.00

7

Fee for supply by a responsible entity of a copy of the constitution of a registered scheme under subsection 601GC(4)

10.00

8

Inspection of register for subsection 919E(3):

 

 

(a) if the register is not kept on a computer—for each inspection

12.50

 

(b) if the register is kept on a computer—for each inspection

a reasonable amount that does not exceed the marginal cost to the declared professional body of providing an inspection

 

(c) despite paragraphs (a) and (b), if the inspection is by a member of the declared professional body

No fee

9

Making copies of, or taking extracts from, a register for subsection 919E(3):

 

 

(a) if the register is not kept on a computer—for each page, or part of a page, not exceeding international sheet size A4 of the copy supplied or, at the option of the supplier, for each 100 words or part of 100 words

1.25

 

(b) if a register is kept on a computer—for each copy or extract

a reasonable amount that does not exceed the marginal cost to the declared professional body of providing a copy or extract


Schedule 5CConduct of auditor—relevant relationships

(regulation 2M.6.05)

  

1  Money owed—debt

             (1)  Subclause (2) applies in relation to audit activity in relation to a financial year that ends on or after the commencement of this Schedule.

             (2)  The operation of Chapter 2M of the Act is modified by omitting subsection 324CH(5) of the Act (including the subheading) and substituting the following subheading and subsection:

Ordinary course of business exception

             (5)  For the purposes of item 15 of the table in subsection (1):

                     (a)  disregard a debt owed by an individual to a body corporate or entity if:

                              (i)  the body corporate or entity is:

                                        (A)  an Australian ADI; or

                                        (B)  a body corporate registered under the Life Insurance Act 1995; and

                             (ii)  the debt arose because of a loan that the body corporate or entity made to the person in the ordinary course of its ordinary business; and

                            (iii)  the person used the amount of the loan to pay the whole or part of the purchase price of premises that the person uses as their principal place of residence; and

                     (b)  disregard a debt owed by the person or firm to a body corporate or entity if:

                              (i)  the debt is on normal terms and conditions, and arises from the acquisition of goods or services on normal trading terms from:

                                        (A)  the audited body; or

                                        (B)  an entity that the audited body controls; or

                                        (C)  a related body corporate; and

                             (ii)  the goods or services will be used by the person or firm:

                                        (A)  for the personal use of the person or firm; or

                                        (B)  in the ordinary course of business of the person or firm.

2  Money owed—deposit account

             (1)  Subclause (2) applies in relation to audit activity in relation to a financial year that ends on or after the commencement of this Schedule.

             (2)  The operation of Chapter 2M of the Act is modified by omitting subsection 324CH(6) of the Act (including the subheading) and substituting the following subheading and subsection:

Loans by immediate family members and amounts on call

             (6)  For the purposes of item 16 of the table in subsection (1):

                     (a)  disregard a debt owed to a person by a body corporate or entity if:

                              (i)  the item applies to the person because the person is an immediate family member of:

                                        (A)  a professional member of the audit team conducting the audit of the audited body; or

                                        (B)  a non‑audit services provider; and

                             (ii)  the debt is incurred in the ordinary course of business of the body corporate or entity; and

                     (b)  disregard an amount owed to the person or firm by the audited body, a related body corporate or an entity that the audited body controls if:

                              (i)  the body, body corporate or entity is an Australian ADI; and

                             (ii)  the amount is in a basic deposit product (within the meaning of section 761A of the Act) provided by the body, body corporate or entity; and

                            (iii)  the amount was deposited in the ordinary course of the business of the audited body, body corporate or entity, and on the terms and conditions that normally apply to basic deposit products provided by the body, body corporate or entity.

3  Public company auditor (annual appointments at AGMs to fill vacancies)

             (1)  Subclause (2) applies to:

                     (a)  all companies; and

                     (b)  all registered schemes; and

                     (c)  all disclosing entities;

only in relation to audit activity that is conducted on or after the commencement of this Schedule.

             (2)  The operation of Chapter 2M of the Act is modified by omitting from subsections 327B(2A), (2B) and (2C) of the Act “21 days” and inserting “21 days, or such longer period as ASIC allows,”.


Schedule 6Availability of names

(regulations 2B.6.01, 2B.6.02, 5B.3.01 and 5B.3.02)

Part 1Rules for ascertaining whether names are identical

6101

                   In comparing one name with another for paragraph 147(1)(a) or (b) or 601DC(1)(a) or (b) of the Act, the following matters are to be disregarded:

                     (a)  the use of the definite or indefinite article as the first word in one or both of those names;

                     (b)  the use of ‘Proprietary’, ‘Pty’, ‘Limited’, ‘Ltd’, ‘No Liability’ or ‘NL’ in one or both of the names;

                     (c)  whether a word is in the plural or singular number in one or both names;

                     (d)  the type, size and case of letters, the size of any numbers or other characters, and any accents, spaces between letters, numbers or characters, and punctuation marks, used in one or both names;

                     (e)  the fact that one name contains a word or expression in column 2 of the following table and the other name contains an alternative for that word or expression in column 3:

 

Column 1

Item

Column 2

Word or expression

Column 3

Alternative

1

Australian

Aust

2

Company

Co or Coy

3

Co

Company or Coy

4

Coy

Company or Co

5

Number

No

6

and

&

7

Incorporated

Inc

8

Corporation

Corp

9

Australian Company Number

ACN

Part 2Names unacceptable for registration

6203

                   For paragraph 147(1)(c) or 601DC(1)(c) of the Act, a name is unacceptable for registration if the name:

                     (a)  in the opinion of ASIC, is undesirable, or likely to be offensive to:

                              (i)  members of the public; or

                             (ii)  members of any section of the public; or

                     (b)  subject to rule 6204:

                              (i)  contains a word or phrase specified in an item in Part 3, or an abbreviation of that word or phrase; or

                             (ii)  a word or phrase or an abbreviation having the same or a similar meaning; or

                     (c)  subject to rule 6205, includes the word ‘Commonwealth’ or ‘Federal’; or

                     (d)  in the context in which it is proposed to be used, suggests a connection with:

                              (i)  the Crown; or

                             (ii)  the Commonwealth Government; or

                            (iii)  the Government of a State or Territory; or

                            (iv)  a municipal or other local authority; or

                             (v)  the Government of any other part of the Queen’s dominions, possessions or territories; or

                            (vi)  a department, authority or instrumentality of the Commonwealth Government; or

                           (vii)  a department, authority or instrumentality of the Government of a State or Territory; or

                          (viii)  the government of a foreign country;