Banking Companies Act 1863 No. 25

An Act to provide for the periodical publication of the Liabilities and Assets of Banks in the Province of South Australia; the registration of the Charters, Letters Patent, or Deeds of Settlement thereof, and the names of the Proprietors in such Banks.

Purpose

The purpose of this Act was to provide for the periodical publication in the The South Australian Government Gazette of the liabilities and assets of banks in the Colony of South Australia, and registration with the Supreme Court of South Australia of the names of bank proprietors and copies of bank Charters, Letters Patent, or Deeds of Settlement.

Document Structure

Clauses

The Banking Companies Act contains a preamble and the following clauses:

1. weekly statements of average assets and liabilities to be kept
2. half-yearly statements ("general abstracts") to be laid before the Parliament of South Australia and published in The South Australian Government Gazette
3. penalties for neglecting to make weekly or half-yearly statements
4. copies of bank charters, letters patent, or deeds of settlement to be recorded in the Supreme Court of South Australia, and penalties for not doing so
5. copies of any new or updated bank charters, letters patent, or deeds of settlement to be recorded in the Supreme Court of South Australia, and penalties for not doing so
6. names of bank proprietors to be recorded in the Supreme Court of South Australia as soon as practicable after the 1st July each year, and penalties for not doing so
7. recorded proprietors are liable to be sued as such until a new list of names is recorded in the Supreme Court of South Australia
8. oaths required to be taken under the provisions of the Act may be taken before any Justice of the Peace, and any false oaths will be punished as wilful and corrupt perjury in accordance with current penalties
9. actions against persons offending under provisions of the Act are limited to two years after the alleged offence occurred
10. parties tasked with meeting the provisions of the Act and who have not done so must provide proof that it wasn't practicable to do so and that the provision was met as soon as it was practicable
11. application of the Act to every company, firm, or individual engaged in public banking, i.e. receiving deposits and issuing bills or notes payable to the bearer on demand
12. all publications required by this Act, e.g. general abstracts, will be inserted in The South Australian Government Gazette free of charge
13. the Act may be cited as "The Banking Companies Act"
14. the Act commences on the 1st January 1864

The last page of the Act is a schedule laying out the required format and details of a general abstract.

Caveats

Clause 7 has a caveat on recorded proprietors' liability for the debts of their bank. Proprietors are only liable up to the full amount stated in the bank's charter, letters patent, or deed, and might be absolved if other clauses of the Act allow.
Clause 10 has a caveat that no excuse for not meeting the provisions of the Act will be allowed unless parties show clearly that what was required to be done was done as soon as practicable.

References

The Banking Companies Act makes reference to "An Act to Provide for the Registration of Joint Stock Companies, and for limiting the liability of members thereof" in Clause 7 when identifying limits on proprietors' liability for bank debts.

Publication Status

The Act was published in The South Australian Government Gazette, page 938, November 12 1863, and was available publically from that date.

Legal status

The Act was legal in the Colony of South Australia from the 1st January 1864.

Historical Details

Background

Banking in the Colony of South Australia's early days was a challenging activity often marred by fraud, lack of public confidence, inept bankers, and poor economic conditions. An Act of the Parliament of South Australia was required for the "information and better security of the public".

Term

The Act was amended in 1875 to change the submission of general abstracts to the Parliament of South Australia from half-yearly to quarterly. This was deemed by the Parliament to be more expedient than waiting six months between bank reports.

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Banking Companies Act 1863 No. 25

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Article Contents

Type

Decree, Governmental

Medium

Paper

Ratification Date

12th November 1863

Location

Colony of South Australia

Signatories (Organizations)

• Parliament of South Australia