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Words governed by special purpose legislation

Date

Guidelines for the use in body corporate names of the words 'Starr Bowkett'

Regulation

Subregulations 2B.6.01(2) and 5B.3.01(2) respectively of the Corporations Regulations provide that, for paragraphs 147(1)(c) and 601DC(1)(c) of the Corporations Act, a name is unacceptable for registration if it is unacceptable under the rules set out in Part 2 of Schedule 6 of the Regulations.

Rule 6203(b) provides that a name is unacceptable for registration if the name contains a word or phrase specified in an item in Part 3 of Schedule 6 of the Regulations, an abbreviation of that word or phrase, or a word or phrase or an abbreviation having the same or a similar meaning.

Item 6318 in Part 3 of Schedule 6 specifies the words 'Starr Bowkett'. (Rule 6204(a) expressly permits these words to be used where they must be included in the name of a registrable Australian body or a registered Australian body because of the law under which it is incorporated or registered.)

Starr Bowkett societies are an old form of building society. Their objects are to make loans on the security of real estate, for the purpose of assisting shareholders to buy or to build homes. Loans are granted to shareholders that win a ballot involving the drawing of lots. The building society continues until all the shareholders have received loans. They are regulated under State and Territory legislation

The intention of this regulation is to avoid the situation where a body corporate breaches the State and Territory Legislation by conducting business using a name made available under the Corporations Act.

Criteria for the Assessment of Applications

Consent will normally be granted to the use in body corporate names of the words 'Starr Bowkett' or words having a similar meaning, if:

  1. the body corporate is permitted under State and Territory legislation to use those words in carrying on business;
  2. the body corporate is related to another body corporate that is required or permitted to use similar words in its name.

The applicant for the incorporation of a new body corporate seeking to use the words 'Starr Bowkett' in its name is required to provide evidence that the relevant regulatory authorities in the jurisdictions where the applicant proposes to operate have consented to the use of these words in the applicant's proposed name.

Guidelines for the use in body corporate names of the word 'Co-operative'

Regulation

Subregulations 2B.6.01(2) and 5B.3.01(2) respectively of the Corporations Regulations provide that, for paragraphs 147(1)(c) and 601DC(1)(c) of the Corporations Act, a name is unacceptable for registration if it is unacceptable under the rules set out in Part 2 of Schedule 6 of the Regulations.

Rule 6203(b) provides that a name is unacceptable for registration if the name contains a word or phrase specified in an item in Schedule 6 of the Regulations, an abbreviation of that word or phrase, or a word or phrase or an abbreviation having the same or a similar meaning. Item 6309 in Part 3 of Schedule 6 specifies the word 'Co-operative'. (Rule 6204(a) expressly permits this word to be used where it must be included in the name of a registrable Australian body or a registered Australian body because of the law under which it is incorporated or registered.)

Criteria for the Assessment of Applications

Consent will normally be granted to the use of the word 'Co-operative' or the abbreviation 'Co-op' in a body corporate name, notwithstanding that the body corporate is not expressly required to use these words in its name if:

  1. the word 'Co-operative' or the abbreviation 'Co-op' is permitted to be included in the name because of the State or Territory co-operative societies legislation under which the body is incorporated or registered; or
  2. the body corporate is related to another body corporate that is required or permitted to use 'Co-operative' or 'Co-op' in its name; or
  3. the context in which the word 'Co-operative' or the abbreviation 'Co-op' is used in the name is not likely to mislead members of the public into believing that the body corporate is registered under co-operative societies legislation (e.g. the co-operative research centres established by joint venture agreements between the Commonwealth and industry).

It should be noted that some State and Territory co-operative societies legislation restricts the use of the word 'Co-operative' in a body corporate name. The applicant for the incorporation of a new co-operative society or any body corporate related to such a co-operative society that proposes to use the word 'Co-operative' in its name will need to provide evidence that the relevant registering authorities in the jurisdictions where the applicant proposes to operate have consented to the use of the word 'Co-operative' in the proposed body corporate name.

Any other body corporate seeking to use the word 'Co-operative' in its name, such as co-operative research centres, need not provide such evidence. However it will need to obtain, from the relevant registering authorities in the jurisdictions in which it proposes to operate, exemptions from the operation of the co-operative societies legislation. These exemptions should be sought subsequent to obtaining the Commonwealth Minister's consent to use the word 'Co-operative' in its name.

Guidelines for the use in body corporate names of the words 'Friendly Society'

The following guidelines in respect of the words 'friendly society' apply to a body corporate seeking to use those words in its name but which does not carry on or propose to carry on a financial business. A 'financial business' is defined under subregulation 1.0.02(1) of the Corporations Regulations to mean a business that consists of, or includes the provision of financial services or relates, wholly or partly, to the provision of financial services.

A body corporate that carries on or proposes to carry on a financial business and wishes to use the words 'friendly society' in its name is required to seek the consent of the Australian Prudential Regulation Authority under the Life Insurance Act 1995.

Regulation

Subregulations 2B.6.01(2) and 5B.3.01(2) respectively of the Corporations Regulations provide that, for paragraphs 147(1)(c) and 601DC(1)(c) of the Corporations Act, a name is unacceptable for registration if it is unacceptable under the rules set out in Part 2 of Schedule 6 of the Regulations.

Rule 6203(b) provides that a name is unacceptable for registration if the name contains a word or phrase specified in an item in Schedule 6 of the Regulations, an abbreviation of that word or phrase, or a word or phrase or an abbreviation having the same or a similar meaning.

Item 6312 in Part 3 of Schedule 6 specifies the words 'Friendly Society' (other than in relation to the conduct of a financial business). (Rule 6204(a) expressly permits these words to be used where they must be included in the name of a registrable Australian body or a registered Australian body because of the law under which it is incorporated or registered.)

The formation and activities of friendly societies are regulated by State and Territory legislation. A friendly society is a society which, by voluntary subscriptions, provides for:

  1. the relief or maintenance of its members and their families in sickness or old age; and
  2. the relief or maintenance of widows and orphan children of deceased members for funeral benefits etc.

This regulation is intended to avoid the situation where a body corporate breaches relevant Commonwealth, State or Territory legislation governing friendly societies by conducting business using a name made available under the Corporations Act.

Criteria for the Assessment of Applications

Consent will normally be granted to the use of the words 'Friendly Society' in a body corporat
e name, notwithstanding that the body corporate is not required to use the name under State or Territory law if:

  1. the words are permitted to be included in the name because of the Commonwealth, State or Territory legislation under which the body corporate is incorporated or registered; or
  2. the body corporate is related to another body corporate that is required or permitted to use similar words in its name.

The applicant for the incorporation of a new friendly society or any other body corporate seeking to use the words 'Friendly Society' will need to provide evidence that the relevant regulatory authorities in the jurisdictions where the applicant proposes to operate have consented to the use of the words in the applicant's proposed body corporate name.