Co-operative Scheme Legislation Amendment Act 1989

2. Electronic Company Registers Allows the Corporate Affairs Commission to maintain company registers electronically. People can search these registers using computers, and the Commission can provide information in electronic form rather than only as paper copies.

3. Financial Services Licensing Overhaul Restructures how securities dealers, investment advisers, futures brokers and futures advisers are regulated:

• Simplified representative system: Replaces separate "representative licences" with a system of "proper authorities" issued by licensees
• Banning orders: Gives the Commission power to ban individuals from working in the industry (as representatives) for misconduct, fraud, or insolvency
• Liability rules: Principals (licensees) are strictly liable for conduct of their representatives; clients can rescind agreements made with unlicensed persons
• Interstate recognition: Establishes "recognised licensees" from other States/Territories

4. Fast Settlement System for Shares Introduces a pilot scheme (the "Flexible Accelerated Security Transfer System") to allow faster electronic transfer of shares:

• Brokers can stamp transfer documents on behalf of sellers
• New protections against unauthorised transfers
• Securities exchanges and brokers must provide warranties and indemnities about the validity of transfers

5. Managed Investment Buy-backs Extends buy-back rules to "prescribed interests" (managed investment schemes), requiring trust deeds to contain buy-back covenants and adequate arrangements to fund them.

Who it affects

• Public and proprietary companies (especially those wanting to buy back shares)
• Shareholders (new rights to sell shares back to companies; protection against unfair selective buy-backs)
• Stockbrokers, investment advisers, and futures dealers (new licensing and liability rules)
• Company directors (new solvency declaration requirements and personal liability risks)
• Creditors (new rights to challenge buy-backs that threaten company solvency)

Why it matters This Act modernised Australian corporate law by permitting share buy-backs (common in other countries but previously prohibited here), introduced consumer protection measures for financial services clients, and began the shift toward electronic securities trading and settlement.