AUSTRALIAN CAPITAL TERRITORY

COMPANIES (LIFE INSURANCE HOLDING COMPANIES)
ORDINANCE 1968

EXPLANATORY MEMORANDUM

No. 23 of 1968

	The purpose of the Companies (Life Insurance Holding Companies) Ordinance 1968 is to restrict the number and value of foreign shares that may be held in certain Life Insurance Holding Companies incorporated in the Australian Capital Territory.

2.	The companies to which the Ordinance will apply are specified in section 5.  They are –

(a)	The M.L.C. Limited; and

(b)	A.P.A. Holdings Limited.

3.	The meaning of the expression ‘foreign share’ is defined in section 6 so as to include shares that are owned or controlled by persons not ordinarily resident in, or by corporations not incorporated in, Australia or New Zealand.

4.	The Ordinance contains three classes of provisions with respect to foreign shares:

	(a)	Part III contains restrictions on the transfer or allotment of foreign shares;

	(b)	Part V contains restrictions on the voting rights in respect of such shares; and

	(c)	Part VI provides for the compulsory disposal of such shares if prescribed limits are exceeded.

5.	Authority:  See Cabinet Decision No. 548 dated 24 September 1968.