Trustee Companies (Amendment) Act 1988 No. 76 TABLE OF PROVISIONS

Section 1. Purpose. 2. Commencement. 3. Principal Act. 4. Amendment of section 4(1). 5. Conditional authorisation of trustee companies. 6. New section 8 substituted. 8. Suspension or revocation of authority. 7. Amendment of section 15(1). 8. Commission chargeable by trustee compames. 9. Amendment of section 21 (7). 10. Amendment of section 31: borrowing. 11. Amendment of section 32. 12. Amendment of section 36: reserve fund. 13. Amendment of section 41 (2) ( / ) . 14. Offences.

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Victoria

No.76ofl988

Trustee Companies (Amendment) Act 1988 [Assented to 15 December 1988] The Parliament of Victoria enacts as follows:

Purpose. 1. The purpose of this Act is to amend the Trustee Companies Act 1984. Commencement. 2. This Act comes into operation on a day to be proclaimed. Principal Act. 3. In this Act, the Trustee Companies Act 1984 is called the Principal . Act.

NO. loies. Amended by Nos. 59/1986, 10/1986 and 55/1987.

Amendment of section 4 (1). 4. In section 4 (l)ofthe Principal Act, in the definition of "Reserve Fund" for "Part VII" substitute "Part VI". 1223

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Trustee Companies (Amendment) Act 1988 Conditional authorisation of trustee companies. 5. (1) In section 7 of the Principal Act, for sub-section (4) substitute— "(4) The Attorney-General may authorise a corporation to be a trustee company, subject to such conditions (if any) as are prescribed either generally or in relation to a particular corporation.". (2) In section 7 of the Principal Act, after sub-section (5) insert— "(5A) Regulations made under this section may be disallowed in whole or in part by resolution of either House of the Parliament in accordance with the requirements of section 6 (2) of the Subordinate Legislation Act 1962. (5B) Disallowance under sub-section (5A) is deemed to be disallowance by Parliament for the purposes of the Subordinate Legislation Act 1962.". New section 8 substituted. 6. For section 8 of the Principal Act substitute— Suspension or revocation of authority. "8. (1) If the Attorney-General is satisfied that a corporation that is a trustee company has failed to comply with a condition to which its authorisation under section 7 is subject, the Attorney-General may, by notice pubhshed in the Government Gazette declare— (a) that the corporation's authorisation as a trustee company is suspended either for the period specified in the notice or indefinitely; or {b) that the corporation is not a trustee company. (2) If a declaration is made under sub-section (1)— (a) the corporation must not, during the period of suspension or, if the declaration was made under sub-section (1) {b), after the making of the declaration— (i) accept appointment as an executor; or (ii) apply for probate or a grant of administration; or (iii) be appointed under section 14; or (iv) establish a Common Fund; and {b) except as provided in paragraph (a), this Act continues to apply to the corporation and so appUes, in the case of a declaration made under sub-section (1) (Jb), as if the corporation were a trustee company. (3) If the Attorney-General is satisfied that a corporation that is a trustee company has ceased to carry on business as a trustee company, the Attorney-General may, by notice published in the Government Gazette declare that the corporation is not a trustee company.". 1224

Trustee Companies (Amendment) Act 1988 Amendment of section 15 (1). 7. In section 15 (1) of the Principal Act; omit "by the". Commission chargeable by trustee companies. 8. In section 21 of the Principal Act— (a) in subrsection (1), after "committed" insert "(whether before or after the commencement of this section)"; and {b) in.sub-section (4) after "the income of an estate" insert "(whether the estate was committed to the administration or management of the trustee company before or after the commencement of this section)". Amendment of section 21 (7). 9. In section 21 (7) (a) of the Principal Act, for "is was" substitute "it was". Amendment of section 31: borrowing. 10. In section 31 of the Principal Act, for sub-section (2) substitute— "(2) Despite sub-section (1), a trustee company may borrow money— (a) i f (i) the money is borrowed from a financial institution or is a subordinated loan from a related corporation of the trustee company; and (ii) the total of all borrowing and liabilities of the trustee company (other than contingent liabilities) and the amount of the proposed loan together do not exceed the total amount of the net tangible assets of the trustee company specified in the last declaration made by the trustee company under section 52; or (b) if the money is a subordinated loan from a related corporation of the trustee company— (i) for the purposes of meeting the trustee company's obligations under Part VI; and (ii) the terms of which include a condition that it is not repayable except with the approval of the Commissioner.". Amendment of section 32. 11. (1) In section 32 of the Principal Act after "32." insert "(1)". (2) At the end of section 32 of the Principal Act insert— "(2) Sub-section (1) does not apply to a deposit or loan of a prescribed class or made in prescribed circumstances. 1225

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Trustee Companies (Amendment) Act 1988 (3) If an estate committed to the administration or management in Victoria of a trustee company includes, at the time it is committed, a deposit or loan to a related corporation of the trustee company, sub-section (1) does not apply to the deposit or loan. (4) Regulations made under this section may be disallowed in whole or in part by resolution of either House of the Parliament in accordance with the requirements of section 6 (2) of the Subordinate Legislation Act 1962. (5) Disallowance under sub-section (4) is deemed to be disallowance by Parliament for the purposes of the Subordinate Legislation Act 1962.". Amendment of section 36: reserve fund. 12. (1) In section 36 of the Principal Act, for sub-section (2), substitute— "(2) A trustee company shall ensure that, as on the first day of each prescribed period, the sum of the nominal value of its reserve liability (if any) and the value of its reserve fund is not less than the sum of— (a) the prescribed percentage of the value of that part of the trust estates in Victoria of the trustee company that consists of estates committed to the administration or management in Victoria of the trustee company; and {b) the prescribed percentage of the value of money received in Victoria by the trustee company (not being an estate or part of an estate) for investment in a common fund to which section 4(1) (m) of the Trustee Act 1958 applies; and (c) the prescribed percentage of the value of money received in Victoria by the trustee company (not being an estate or part of an estate) for investment in a common fund the investment of which is restricted to authorised investments within the meaning of the Trustee Act 1958; and {d) the prescribed percentage of the value of money received in Victoria by the trustee company (not being an estate or part of an estate) for investment in a common fund, other than a common fund to which paragraph (6) or (c) applies. Penalty: 15 penalty units.". (2) After section 36 (4) of the Principal Act insert— "(4A) Regulations made under this section may be disallowed in whole or in part by resolution of either House of the Parliament in accordance with the requirements of section 6 (2) of the Subordinate Legislation Act 1962. (4B) Disallowance under sub-section (4A) is deemed to be disallowance by Parliament for the purposes of the Subordinate Legislation Act 1962.". 1226

Trustee Companies (Amendment) Act 1988 Amendment of section 41 (2) ( / ) . 13. In section 41 (2) ( / ) of the Principal Act, after "acceptor" insert "or indorser". Offences. 14. (1) At the foot of section 37(1) of the Principal Act insert— "Penalty: 15 penalty units.". (2) At the foot of section 40 (12) of the Principal Act insert— "Penalty applying to this sub-section: 15 penalty units.". (3) At the foot of section 42 of the Principal Act insert— "Penalty: 15 penalty units.". (4) After section 54 of the Principal Act insert— Offences by directors. "54A. If a trustee company is guilty of an offence against this Act, each person who is a director, or is concerned in the management of the trustee company, who is in any way, by act or omission, directly or indirectly, knowin^y concerned in or party to the commission of the offence is guilty of an offence. Penalty: 15 penalty units.".

NOTES

1. Minister's second reading speech— Legislative Assembly: 3 November 1988 Legislative Council: 6 December 1988 2. The long title for the Bill for this Act was "A Bill to amend the Trustee Companies Act 1984 and for other purposes.".

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