Senate

Explanatory Memorandum

(Circulated by authority of the Parliamentary Secretary to the Treasurer, the Hon Ross Cameron, MP)

Schedule 4 - Transitional Provisions

Item 1 - new Part 10.4 of the Corporations Act 2001 (sections 1449 to 1452)

3.187 New Part 10.4 sets out transitional arrangements for the application of the amendments to Chapter 7 of the Corporations Act (the Act) contained in the Bill. The transitional provisions have three functions:

i.

They ensure that the current 'phase-in' regime (under Division 1 of Part 10.2 of the Act) applies to Chapter 7 (as introduced by the FSR Act), as amended by this Bill, in the same way as it does to the provisions of Chapter 7 prior to its amendment by this Bill. This is dealt with in new subsections 1450(1) and (2);

ii.

They deal with how people transition from the old Chapters 7 and 8 of the Act (ie. Chapters 7 and 8 prior to the amendments introduced by the FSR Act) to the Chapter 7 regime, as amended by this Bill. This is dealt with in new subsection 1450(3); and

iii.

They clarify how various provisions of Chapter 7 of the Act that may already apply to a person or product (ie. A 'phase-in' under Division 1 of Part 10.2 of the Act has already occurred) are affected by the amendments in this Bill. This is dealt with in new section 1451.

3.188 New section 1452 provides transitional arrangements in relation to the amendments to section 1274 of the Act contained in items 101 and 102 of Schedule 2.