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Qantas Sale Amendment (Still Call Australia Home) Bill 2011

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2010-2011

 

 

 

 

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

 

 

 

 

THE SENATE

 

 

 

 

 

 

QANTAS SALE AMENDMENT (STILL CALL AUSTRALIA HOME) BILL 2011

 

 

 

 

 

 

 

 

EXPLANATORY MEMORANDUM

 

 

 

 

 

 

 

 

 

 

 

(Circulated by authority of Senator N Xenophon)

 

 

 

Qantas Sale Amendment (Still Call Australia Home) Bill 2011

 

 

1. Short Title

This clause is a formal provision and specifies the short title of the bill, once enacted, as the Qantas Sale Amendment (Still Call Australia Home) Act 2011 .

 

 

2. Commencement

This clause provides for the Act to commence on the day it receives the Royal Assent.

 

 

3. Schedules

This clause states that each Act specified in a Schedule to this Act is amended or repealed according to the provisions of this Act, according to its terms.

 

 

4. Schedule 1 - Amendments to the Qantas Sale Act 1992

Clause 1 inserts a definition for "associated entity" into the Act, in line with section 50AAA of the Corporations Act 2001 .

 

Clause 2 omits from paragraph 7(1)(h) of Part 3 of the Qantas Sale Act the words "(for example), facilities for the maintenance and housing of aircraft, catering, flight operations, training and administration),".

 

This would remove from the existing paragraph reference to examples and require that Qantas ensure that, of its facilities broadly, its principal operational centre is located in Australia.

 

Clause 3 inserts three new requirements into Part 3 of the Act.

 

Paragraph 7(1)(ha) requires that Qantas, as a parent company, ensure that its subsidiaries and associated entities - such as Jetstar - have its principal operational centre located in Australia.

 

Paragraphs 7(1)(hb) and (hc) require that the majority of heavy maintenance of aircraft and the majority of flight operations and training conducted by Qantas or by its subsidiaries and any associated entities is conducted in Australia.

 

Clause 4 inserts two new requirements into Part 3 of the Act with relation to Qantas Directors.

 

Paragraphs 7(ia) and (ib) requires that at least one of the Directors of Qantas has a minimum of 5 years' professional flight operations experience and that at least one of the Directors has a minimum of 5 years' aircraft engineering experience.

 

Clause 5 and 6 of the Bill relates to injunctions under section 10 of the Act.

 

Clause 5 provides that the Court may, on the application of the Minister, 100 shareholder members or shareholder members who hold at least 5 percent of the shares in Qantas, restrain Qantas from engaging in particular conduct, such as a contravention of mandatory articles (section 7 of the Act) or section 9 (which requires Qantas to maintain a register of shares in which foreign persons have a relevant interest), and require them to do a particular act or thing.

 

Clause 6 provides that, if Qantas or any other person has refused or fail to comply with the mandatory articles under section 7 of the Act, the Court may, on the application of the Minister, 100 shareholder members or shareholder members who hold at least 5 percent of the shares in Qantas, require Qantas or that person to do that particular act or thing.

 

The current Act only allows an application to the Court for injunctions by the Minister. Clause 5 and 6 extends this also allow for applications to the Court by 100 shareholder members or shareholder members who hold at least 5 percent of the shares in Qantas.