ASIC has made a new legislative instrument to replace Class Order [CO 02/225] Rights issue notifications, which was due to expire (‘sunset’) on 1 April 2017.
The new legislative instrument is ASIC Corporations (Renounceable Rights Issue Notifications) Instrument 2016/993. The instrument has substantially the same effect as [CO 02/225]. It provides relief from certain sections of Chapter 6D and Part 7.9 of the Corporations Act 2001 to facilitate the renunciation and transfer of rights issued under a renounceable rights offer.
ASIC has also repealed Class Order [CO 00/231] Money market deposits, which was due to sunset on 1 April 2017.
Class Order [CO 00/231] was repealed as the relief provided by the class order is no longer necessary in light of other provisions of the Corporations Act 2001 and any residual need for relief is more appropriately given on a case by case basis by application.
ASIC consulted on its proposal to continue the relief in [CO 02/225] without substantive changes and to repeal [CO 00/231] in Consultation Paper 261 Remaking and repealing ASIC class orders on rights issue notifications and money market deposits (CP 261), released 15 June 2016. Comments closed on 15 July 2016 (refer: 16-193MR).
We received one submission to CP 261, which was supportive of our proposals.
Download
- ASIC Corporations (Renounceable Rights Issue Notifications) Instrument 2016/993
- ASIC Corporations (Repeal) Instrument 2016/1005
- ASIC Corporations (Repeal) Instrument 2016/994
- CP 261
- Non-confidential submission to CP 261
Background
Under the Legislation Act 2003, all class orders are repealed automatically or ‘sunset’ after a period of time (mostly 10 years) unless we take action to preserve them. This ensures that legislative instruments like class orders are kept up to date and only remain in force while they are fit for purpose and relevant.