CORPORATIONS ACT 2001 Meaning of securities (2024)

Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 92

(1) Subject to this section, securities means:

(a) debentures, stocks or bonds issued or proposed to be issuedby a government; or

(b) shares in, or debentures of, a body; or

(c) interests in a managed investment scheme; or

(d) units of such shares;

but does not include:

(f) a derivative (as defined in section 761D), other thanan option to acquire by way of transfer a security covered by paragraph (a), (b), (c) or (d); or

(g) an excluded security.

Note: A derivative does not include an option to acquire a security byway of issue (see the combined effect of paragraph 761D(3)(c),paragraph 764A(1)(a) and paragraph (5)(d) of this section).

(2) The expression securities , when used in relation to a body,means:

(a) shares in the body; or

(b) debentures of the body; or

(c) interests in a managed investment scheme made available bythe body; or

(d) units of such shares;

but does not include:

(e) a derivative (as defined in section 761D), other thanan option to acquire by way of transfer a security covered by paragraph (a), (b), (c) or (d); or

(f) an excluded security.

Note: A derivative does not include an option to acquire a security byway of issue (see the note to subsection (1)).

(2A) In Part 1.2A, securities means:

(a) shares in a body; or

(b) debentures of a body; or

(c) interests in a registered scheme or a notifiedforeign passport fund; or

(d) legal or equitable rights or interests in:

(i) shares; or

(ii) debentures; or

(iii) interests in a registered scheme or a notifiedforeign passport fund; or

(e) options to acquire (whether by way of issue or transfer) asecurity covered by paragraph (a), (b), (c) or (d).

It does not cover:

(f) a derivative (as defined in section 761D), other thanan option to acquire by way of transfer a security covered by paragraph (a), (b), (c) or (d); or

(g) a market traded option.

Note 1: A derivative does not include an option to acquire a securityby way of issue (see the note to subsection (1)).

Note 2: Section 9 defines body .

(3) In Chapters 6 to 6CA (inclusive) and Part 8B.7:

"securities" means:

(a) shares in a body; or

(b) debentures of a body; or

(c) interests in a registered scheme; or

(d) when used in Chapter 6C--an interest in a listednotified foreign passport fund; or

(e) legal or equitable rights or interests in:

(i) shares; or

(ii) debentures; or

(iii) interests in a registered scheme or interests in a fundmentioned in paragraph (d); or

(f) options to acquire (whether by way of issue or transfer) asecurity covered by paragraph (a), (b), (c), (d) or (e).

It does not cover:

(g) a derivative (as defined in section 761D), other thanan option to acquire by way of transfer a security covered by paragraph (a), (b), (c), (d) or (e); or

(h) a market traded option; or

(i) when used outside Chapter 6C--an interest in anotified foreign passport fund.

Note 1: A derivative does not include an option to acquire a securityby way of issue (see the note to subsection (1)).

Note 2: Section 9 defines body .

(4) In Chapter 6D, securities has the meaning given bysection 700.

Note: However, in Chapter 6D, securities does not includesecurities in a CCIV: see section 1240G.

(5) In Chapter 7 (except Part 7.11), securitymeans:

(a) a share in a body; or

(b) a debenture of a body; or

(c) a legal or equitable right or interest in a security coveredby paragraph (a) or (b); or

(d) an option to acquire, by way of issue, a security covered byparagraph (a), (b) or (c); or

(e) a right (whether existing or future and whether contingentor not) to acquire, by way of issue, the following under a rights issue:

(i) a security covered by paragraph (a), (b), (c) or (d);

(ii) a managed investment product;

(iii) a foreign passport fund product;

(iv) an interest or right covered by paragraph 764A(ba);or

(f) a CGS depository interest; or

(g) a simple corporate bonds depository interest;

but does not include an excluded security or a foreign passport fund product.

(6) In Part 7.11, security means:

(a) a security as defined in subsection (5); or

(b) a managed investment product; or

(c) a foreign passport fund product.

(7) In Chapter 8, securities means:

(a) a share in a body; or

(b) a debenture of a body; or

(c) an interest in a managed investment scheme; or

(d) a legal or equitable right or interest in a security orinterest covered by paragraph (a), (b) or (c); or

(e) an option to acquire, by way of issue, an interest or rightcovered by paragraph (a), (b), (c) or (d).