a Member Organisation) for Affiliates (formerly natural Person Members), as was adopted in the constitution and Rules prior to demutualisation. The following is a summary of the changes: (a) New Definitions Section This is a revised version of the section which previously appeared at the beginning of the Business Rules. It includes some definitions and principles of interpretation previously located in the Articles. (b) New Section 5A This section deals with the recognition of Affiliates and Participating Organisations. The concept of 'Member' which previously appeared in the constitution and Business Rules has been replaced with either Participating Organisation or Affiliate. The section contemplates that natural persons will be recognised as Affiliates and that corporations and partnerships will be recognised as Participating Organisations. The admission procedure for an Affiliate is modelled on the admission requirements for a 'Member' which applied prior to demutualisation. The previous requirement that applicants be 'not less than 21 years of age' has been removed. A provision for a register of Affiliates has been added. Provisions for Participating Organisations and Affiliates to be notified of applications to become a Participating Organisation or an Affiliate have been removed. Requirements for a partnership conducting business have been incorporated into the requirements for ASX to recognise a partnership as a Participating Organisation (for example, the number of partners who must be Affiliates). The drafting also endeavours to ensure that the requirements for partnerships appropriately mirror those for corporations (for example, provision has been added requiring the constituent documents of a partnership to contain provisions which require continued compliance by the partnership with the requirements of the Business Rules. Provision has been added to require notification of the appointment of a new partner who is not an Affiliate). The provision allowing a person to carry on business as a sole trader in limited circumstances on dissolution of partnership has been retained. (c) New Section 5 New section 5 includes those provisions of the previous Business Rules, and to a lesser extent the constitution, which are concerned with the day to day running of a Participating Organisation's business. (d) New Section 13
a Member Organisation) for Affiliates (formerly natural Person Members), as was adopted in the constitution and Rules prior to demutualisation. The following is a summary of the changes: (a) New Definitions Section This is a revised version of the section which previously appeared at the beginning of the Business Rules. It includes some definitions and principles of interpretation previously located in the Articles. (b) New Section 5A This section deals with the recognition of Affiliates and Participating Organisations. The concept of 'Member' which previously appeared in the constitution and Business Rules has been replaced with either Participating Organisation or Affiliate. The section contemplates that natural persons will be recognised as Affiliates and that corporations and partnerships will be recognised as Participating Organisations. The admission procedure for an Affiliate is modelled on the admission requirements for a 'Member' which applied prior to demutualisation. The previous requirement that applicants be 'not less than 21 years of age' has been removed. A provision for a register of Affiliates has been added. Provisions for Participating Organisations and Affiliates to be notified of applications to become a Participating Organisation or an Affiliate have been removed. Requirements for a partnership conducting business have been incorporated into the requirements for ASX to recognise a partnership as a Participating Organisation (for example, the number of partners who must be Affiliates). The drafting also endeavours to ensure that the requirements for partnerships appropriately mirror those for corporations (for example, provision has been added requiring the constituent documents of a partnership to contain provisions which require continued compliance by the partnership with the requirements of the Business Rules. Provision has been added to require notification of the appointment of a new partner who is not an Affiliate). The provision allowing a person to carry on business as a sole trader in limited circumstances on dissolution of partnership has been retained. (c) New Section 5 New section 5 includes those provisions of the previous Business Rules, and to a lesser extent the constitution, which are concerned with the day to day running of a Participating Organisation's business. (d) New Section 13
CORPORATE-LAW-ELECTRONIC-BULLETIN-October-1998.docx