INCONSISTENCY WHETHER FRIENDLY SOCIETY RULES MAKING BONDS VESTED IN SOCIETY NON-TRANSFERABLE CAN APPLY TO COMMONWEALTH TREASURY BONDS
COMMONWEALTH INSCRIBED STOCK ACT 1911, Part VA; s. 51C: TREASURY BILLS ACT 1914, s. 5: FRIENDLY SOCIETIES ACT 1913 (QLD), s. 20
The following extracts from the rules prescribed by section 20 of the Friendly Societies Act 1913 (Queensland) for the regulation of business proceedings and property of Friendly Societies have been submitted to me:
- So far as regards any bond and debenture for the time being vested in the trustees of any society or branch, the trustees shall cause to be legibly written, printed, or stamped upon the face thereof a note of ownership signed by one or more of the trustees in the following form or to the like effect:
- Until the cancellation of such note of ownership, such bond or debenture and any right or title thereto shall (notwithstanding anything contained in any Act or in such bond or debenture) cease to be transferable or pass by delivery only or otherwise howsoever, and the principal money represented thereby shall be paid to the trustees for the time being of the society or branch and to no other person.
- Any note of ownership on any such bond or debenture vested in the trustees may be cancelled by a cancellation note in the following form or to the like effect written or stamped on the face thereof, and signed by all the trustees of the society or of the society of which the branch is a branch, as the case may be:
The [name of society or branch] is now the owner of this bond or debenture, which has ceased to be transferable by virtue of the Friendly Societies Act of 1913. Dated this day of 19
Trustee or Trustees of the [Society or Branch]
The note of ownership appearing hereon has been cancelled in pursuance of the Friendly Societies Act of 1913. Dated this day of 19
(Signed by Trustees of the Society or of the Society
of which the said Branch is a Branch)
Thereafter such bond or debenture and any interest therein shall become transferable and pass by delivery as fully and effectually as if such note of ownership had not been made thereon.
I have been asked to advise whether the note of ownership referred to in the extracts should be allowed on Treasury Bonds and whether such note, if made, is binding.
Part VA of the Commonwealth Inscribed Stock Act 1911-1915 deals with the issue of Treasury Bonds. Section 51C of that Part provides that subject to the Regulations, the provisions of the Treasury Bills Act 1914-1915 shall apply to Treasury Bonds, as if they were Treasury Bills issued under that Act. Section 5 of the Treasury Bills Act 1914 provides that Treasury Bills shall be transferable by delivery. I am unable to find any provision in the regulations made under the Inscribed Stock Act which precludes the application of section 5 of the Treasury Bills Act to Treasury Bonds. Treasury Bonds are therefore transferable by delivery.
In my opinion the extracts quoted from the Queensland statute should not be read as applying to bonds issued under the Commonwealth legislation above referred to. The note of ownership provided for in the State Act has the effect of impeding the transfer of bonds by delivery and would if applied to Commonwealth Treasury Bonds be in opposition to the intention of the Commonwealth statute, and therefore ineffective.
[Vol. 14, p. 279]
- This date is attributed. In the Opinion Book this opinion is year dated only,but the dating of adjacent opinions suggest a date in march of 1916.