Shareholders are set to vote this week on a proposal that would allow banks to sell shares in the company and use proceeds to pay back shareholders.
The Bank of New South Wales will vote on the proposal, which would require banks to post shares as collateral on their balance sheets and make a commitment to repay any outstanding loans to the bank.
Banks are currently allowed to sell their shares in shares on the secondary market.
If the proposed law goes ahead, it would allow them to sell these shares as long as they also pay back the shares and give investors full disclosure of the deal.
The banks proposal would allow for a variety of actions, including the sale of shares on their books and providing an accounting for any profits.
The Australian Securities and Investments Commission said the legislation was not in breach of any securities laws and the rules could be challenged in court.
A spokeswoman for the ANU said the ANUS did not support or endorse the proposal.
“The ANUS does not support the proposed legislation and would oppose it,” she said.
The ANU also noted that any bank could be forced to disclose the number of shares sold, including shares held by the company or the company’s directors.
“We do not believe that this is appropriate for a financial institution,” she added.
“There should be a separation of roles in the financial sector.”