PM Transcripts

FOR PRESS (~ OT16 P. M. NO. 83/ 1968
AMENDMENT TO A. C. T. COMPANIES ORDINANCE
Statement by the Prime Minister, Mr John Gorton
There are market repoirts of unusually large purchases of
shares in an Australian life insurance company M. L. C. Ltd. Shares so
bought have been registered in the names of nominee companies. They now
represent approximately 36 per cen~ t of the total issued capital of the
Company and the rate of purchasing has recently risen so dramatically as
to suggest the possibility of a " raid" designed to take over the Company.
Because the real buyers of the shares are cloaking their identity, and are
believed to be foreign buyers, this has caused concern to the Government.
The Australian insurance company concerned controls
$ 750 million worth of Australian and New Zealand savirV3 accumula-re-d over
the years and its invested funds are increasing at the rate of $ 75 million
a year as a result of savings by Australians a nd New Zealanders.
The Government does not believe that this accumulated
Australian capital should be allowed to fall under the control of anonymous
and probably foreign interests.
We therefore intend to amend the A. C. T. Companies Ordinance
in relation to life insurance companies to require that nominee shareholders
must reveal to the Insurance Commissioner the identity of the beneficial
owners of the shares, and to rostrict persons who are not residents of
Australia, or companies which are not controlled by residents of Australia,
from holding more than a certain percentage of shares in the Australian
Company. The amending ordinance will operate so as to redress the
effect of any transactions taking place after tochy and will provide a
transitional period within which existing shareholdings are to be adjusted.
The Government believes this action will protect the interests
of the policy holders. We also believe that Australians will share our
determination that control over their Australian savings, and decisions on
the investment of their Australian savings, shall remain in the control of
an Australian company and will not be allowed to fall under the control of
overseas interests.
CANBERRA, 22 September 1968