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National Innovation and Science Agenda – Exclusions from stay of enforcement of ipso facto clauses

The exposure draft of the Corporations Amendment (Stay on Enforcing Certain Rights) Regulations 2018 (the regulations) and the Corporations (Stay on Enforcing Certain Rights) Declaration 2018 (the declaration) support the reforms in the Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Act 2017 (the Act) which received Royal Assent on 18 September 2017.

The draft regulations exclude certain contracts from the stay on the enforcement of ipso facto clauses outlined in the Act and the draft declaration similarly excludes certain types of contractual rights.

The exemptions outlined in both the regulations and the declaration recognise that in some circumstances it is necessary or desirable for ipso facto clauses to continue to operate, for example, where there is an established market mechanism already in place or where it would be a commercial nonsense for an ipso facto clause to be stayed.

The community’s views are sought on the proposed Corporations Amendment (stay on Enforcing Certain Rights) Regulations 2018 and Corporations (Stay on Enforcing Certain Rights) Declaration 2018.

Responding

You can submit responses to this consultation up until 11 May 2018.

Interested parties are invited to comment on this consultation.

While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.

Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

How to respond

Post

Address written submissions to:

Corporations Policy Unit
Consumer and Corporations Division
The Treasury
Langton Crescent
Parkes ACT 2600