April 2007
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In this edition:
Note: All hyperlinks below were correct at the time of publication. Generally, it is too onerous a task for us to check and update these and so if a hyperlink is no longer valid, please accept our apologies.
A number of technical amendments have been made to the new anti-money laundering laws. For a copy of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2007 (Cth) and its explanatory memorandum, go to:
The Native Title Act 1993 (Cth) has been amended to introduce a number of the Government's reforms around the effectiveness of representative Aboriginal and Torres Strait Islander bodies and the native title claims resolution process. For a copy of the Native Title Amendment Act 2007 (Cth) and its explanatory memorandum, go to:
There have also been a number of reforms to bankruptcy laws. For a copy of the Bankruptcy Legislation Amendment (Superannuation Contributions) Act 2007, Bankruptcy (Estate Charges) Amendment Act 2007 and Bankruptcy Legislation Amendment (Debt Agreements) Act 2007 (Cth) and their respective explanatory memoranda, go to:
Amendments have been made to the Corporations Act 2001 (Cth) in an endeavour to restore the powers of the Takeovers Panel following recent court decisions winding back those powers. For a copy of the Corporations Amendment (Takeovers) Act 2007 (Cth) and its explanatory memorandum, go to:
The WA Minister for Consumer Protection has announced that the revised Finance Brokers Code of Conduct is anticipated to commence on 29 June 2007. A copy of the Code is available at:
http://www.docep.wa.gov.au/ConsumerProtection/FinanceBrokers/media/revised_code_of_conduct.pdf
ACCC has launched a checklist for franchisees called Being smart about your new franchise. For a copy go to:
APRA has released a public consultation package seeking comment on its proposal to modernise its data collection for life companies and friendly societies. For a copy, go to:
APRA has succeeded in obtaining court orders preventing an unauthorised financial business, the "Federal State Bank of Australia", from calling itself and acting as a bank. The phoney bank held itself out to be an institution of the "Independent Sovereign State of Australia" with one of the principals the self-styled Attorney-General and Chief Justice of that country, as well as being the Archbishop of the "Church of Love and Peace". See Media Release 07.16:
http://www.apra.gov.au/media-releases/07_16.cfm
ASIC is prosecuting a Melbourne share trader on 17 counts of insider trading brought by ASIC. It is alleged that the trader conducted a number of trades in the securities of WA mining company, Andean Resources Limited, in 2003 while in possession of inside information about a proposed gold mining project. It is further alleged that the trader committed 12 counts of communicating inside information to others at a time when it was not generally available to the public. See Media Release 07-96:
ASIC is also prosecuting the former Deputy Executive Chairman of Harts Australasia Limited on one charge of being knowingly concerned in the company's failure to keep the market informed of a loss of $9.7 million in 2001. Harts listed on the ASX in May 2000 after raising $30 million from a prospectus that forecast a net profit after tax of $12.3 million for the year ending 30 June 2001. It was not until 25 January 2001 that Harts released a revised financial outlook to the ASX anticipating a half yearly loss of $9.7 million to 31 December 2001. See Media Release 07-110:
The former finance director and CFO of HIH Insurance Limited has been found guilty by the NSW Supreme Court of authorising the issue of a prospectus with a material omission. The former company secretary of HIH Insurance Limited has also been sentenced in the NSW Supreme Court to a total of 9 months' imprisonment, after pleading guilty to 3 charges of making misleading statements under section 178BB of the Crimes Act 1900 (NSW) and one charge of failing to discharge his duties as an officer of HIH under section 184 of the Corporations Act 2001. See Media Releases 07-87 and 07-89:
The ASX Corporate Governance Council has announced a new timetable for the implementation of the revised Principles of Good Corporate Governance and Best Practice Recommendations. The start date for the revised Principles will now be 1 January 2008. It is expected that the finalised Principles will be released to the market by the end of June 2007. See ASX Media Release 2 April 2007:
http://www.asx.com.au/about/pdf/mr20070402_revised_corporate_governance_principles_start_dat.pdf
ASX has released an exposure paper entitled Approach to the Integration of Disciplinary Tribunals and Appeal Processes for the Australian Securities Exchange. For a copy, go to:
http://www.asx.com.au/supervision/pdf/approach_to_disciplinary_tribunals_appeals.pdf
SFE has modified its initial margin parameters. See SFE Notice 44/07:
http://www.sfe.com.au/content/notices/2007/notice2007_044.pdf
New amendments to the Trade Marks Act 1995 (Cth) that came into effect on 27 March 2007 potentially affect those with security interests over registered trade marks. Banks or other financiers should consider registering their security as soon as possible so that their rights are not affected if the trade mark is assigned without their knowledge. See Deacons, Legal Update: Register Security Interests Over Trade Marks to Protect Your Interests - 5 April 2007:
http://www.deacons.com.au/NewsUpdates/Newsroom/LegalUpdates.cfm?objid=5986
The creation of a Do Not Call Register scheme last year has major repercussions for the telemarketing industry and all businesses that use phone marketing techniques. For an outline of the legislative components establishing the scheme and its implications, see Allens Arthur Robinson, Focus: Telecommunications – April 2007:
http://www.aar.com.au/pubs/pdf/cmt/fotelapr07.pdf
For a general discussion of recent developments in employee relations law, see Allens Arthur Robinson, Focus: Workplace Relations - April 2007:
http://www.aar.com.au/pubs/pdf/wr/fowrapr07.pdf
The ASIC v Citigroup case raises important questions about conflicts of interest and Chinese walls within investment banks. For an interesting summary of ASIC's submissions in that case, see Blake Dawson Waldron, Financial Services Update - April 2007:
http://www.bdw.com/publications/financial/financial042007.pdf
The County Court of Victoria has awarded a rape victim $234,190 in damages against the ABC for breach of privacy. The judgment, if upheld, constitutes a significant development in the law of privacy. For further information, see Blake Dawson Waldron, Privacy Update - 13 April 2007:
http://www.bdw.com.au/publications/privacy/privacy042007.pdf
The NSW Court of Appeal has reversed the previous decision at first instance that Mr Nicholas Whitlam, the former NRMA President, was entitled to an indemnity for his costs in defending the defamation proceedings he commenced against 2GB and Channel Nine in 2002. The Court of Appeal unanimously held that Mr Whitlam was not entitled to an indemnity under general law or under the terms of the deeds between him and NRMA. The decision in National Roads and Motorists' Association v Whitlam [2007] NSWCA 81 can be viewed at:
http://cclsr.law.unimelb.edu.au/judgments/states/nsw/2007/april/2007nswca81.htm
The NSW Court of Appeal has also upheld earlier findings that the former Chief Financial Officer of GIO Australia Holdings Ltd contravened his duty of care on 3 occasions in respect of profit forecasts made during the AMP takeover bid. However, the Court reversed earlier findings in respect of 4 other contraventions. For those interested, the decision in Vines v Australian Securities & Investments Commission [2007] NSWCA 75 can be viewed at:
http://cclsr.law.unimelb.edu.au/judgments/states/nsw/2007/april/2007nswca75.htm
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