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This is a Bill, not an Act. For current law, see the Acts databases.
2022
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
National Reconstruction Fund
Corporation Bill 2022
No. , 2022
(Industry, Science and Resources)
A Bill for an Act to establish the National
Reconstruction Fund Corporation, and for related
purposes
No. , 2022
National Reconstruction Fund Corporation Bill 2022
i
Contents
Part 1--Preliminary
1
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 2
3
Object ................................................................................................ 2
4
Simplified outline of this Act ............................................................ 2
5
Definitions ......................................................................................... 4
6
Priority areas of the Australian economy ......................................... 10
7
Crown to be bound .......................................................................... 11
8
Extension to external Territories ..................................................... 11
9
Extra-territorial application ............................................................. 11
Part 2--National Reconstruction Fund Corporation
12
10
Simplified outline of this Part .......................................................... 12
11
Establishment .................................................................................. 12
12
Corporation's functions ................................................................... 12
13
Corporation's powers ...................................................................... 13
14
Corporation does not have privileges and immunities of the
Crown .............................................................................................. 13
Part 3--Board of Corporation
14
Division 1--Simplified outline
14
15
Simplified outline of this Part .......................................................... 14
Division 2--Establishment and functions
15
16
Establishment .................................................................................. 15
17
Functions of the Board .................................................................... 15
Division 3--Board Members
16
18
Membership ..................................................................................... 16
19
Appointment of Board members ..................................................... 16
20
Chair ................................................................................................ 17
21
Term of appointment ....................................................................... 17
22
Acting appointments ........................................................................ 17
23
Remuneration .................................................................................. 18
24
Leave of absence ............................................................................. 18
25
Resignation of Board members ....................................................... 19
26
Termination of appointment of Board members .............................. 19
27
Other terms and conditions of Board members ............................... 19
Division 4--Meetings of the Board
20
28
Convening meetings ........................................................................ 20
ii
National Reconstruction Fund Corporation Bill 2022
No. , 2022
29
Presiding at meetings ....................................................................... 20
30
Quorum............................................................................................ 20
31
Voting at meetings ........................................................................... 21
32
Conduct of meetings ........................................................................ 21
33
Minutes ............................................................................................ 21
34
Decisions without meetings ............................................................. 21
Part 4--Chief Executive Officer, staff and consultants and
committees
23
Division 1--Simplified outline
23
35
Simplified outline of this Part .......................................................... 23
Division 2--Chief Executive Officer of Corporation
24
36
Establishment .................................................................................. 24
37
Functions of the CEO ...................................................................... 24
38
Appointment .................................................................................... 24
39
CEO holds office during Board's pleasure ...................................... 25
40
Acting appointments ........................................................................ 25
41
Remuneration of CEO ..................................................................... 25
42
Outside employment ........................................................................ 26
43
Other terms and conditions .............................................................. 26
44
Disclosure of interests ..................................................................... 26
45
Resignation ...................................................................................... 26
Division 3--Staff and consultants
28
46
Staff ................................................................................................. 28
47
Consultants ...................................................................................... 28
Division 4--Committees
29
48
Committees ...................................................................................... 29
49
Remuneration and allowances ......................................................... 29
Part 5--Financial arrangements
30
Division 1--Simplified outline
30
50
Simplified outline of this Part .......................................................... 30
Division 2--National Reconstruction Fund Corporation Special
Account
31
Subdivision A--Establishment of Account
31
51
Establishment of Account ................................................................ 31
Subdivision B--Credits
31
52
Credits to the Account ..................................................................... 31
No. , 2022
National Reconstruction Fund Corporation Bill 2022
iii
Subdivision C--Debits
32
53
Purposes of the Account .................................................................. 32
54
Corporation's request for a payment for itself ................................. 32
55
Nominated Minister's authorisation of payment to
Corporation ...................................................................................... 32
56
Agreement between nominated Minister and Corporation .............. 33
Division 3--The Corporation's money
34
57
Application of the Corporation's money ......................................... 34
58
Managing surplus money ................................................................. 34
59
Borrowing ........................................................................................ 35
60
Receipt of gifts ................................................................................ 36
61
Taxation ........................................................................................... 36
Part 6--Investment functions and powers
37
Division 1--Simplified outline of this Part
37
62
Simplified outline of this Part .......................................................... 37
Division 2--Investment functions and powers
38
63
Investment functions ....................................................................... 38
64
Terms and conditions of financial accommodation provided
to a constitutional corporation ......................................................... 39
65
Terms and conditions of financial accommodation provided
to an entity (other than a constitutional corporation, a State
or a Territory) or an individual ........................................................ 39
66
Terms and conditions of financial accommodation provided
to a State or Territory ...................................................................... 39
67
A Corporation body may realise, or otherwise deal with,
investments ...................................................................................... 40
68
A Corporation body must realise equity interests in certain
circumstances .................................................................................. 40
69
Investments of Corporation bodies to be solely or mainly
Australian-based .............................................................................. 40
70
When an investment of a Corporation body is
solely or
mainly Australian-based
.................................................................. 41
Division 3--Performance of investment functions etc.
43
71
Investment Mandate ........................................................................ 43
72
Limits on Investment Mandate ........................................................ 44
73
Board to be consulted on Investment Mandate ................................ 44
74
Compliance with Investment Mandate ............................................ 45
75
Investment policies .......................................................................... 46
76
Guarantees ....................................................................................... 47
77
Derivatives ...................................................................................... 48
iv
National Reconstruction Fund Corporation Bill 2022
No. , 2022
Part 7--Miscellaneous
49
78
Simplified outline of this Part .......................................................... 49
79
Incorporation or formation of subsidiaries ...................................... 49
80
Responsibilities of designated subsidiaries ...................................... 49
81
Corporation body may charge fees .................................................. 50
82
Publication of investment reports .................................................... 50
83
Publication of reports etc. ................................................................ 51
84
Extra matters to be included in annual report .................................. 52
85
Disclosure of official information.................................................... 53
86
Nominated Minister ......................................................................... 55
87
Delegation by nominated Minister .................................................. 55
88
Delegation by Corporation .............................................................. 55
89
Delegation by Board ........................................................................ 55
90
Delegation and subdelegation by CEO ............................................ 56
91
Periodic reviews of the operation of this Act ................................... 56
92
Rules ................................................................................................ 57
No. , 2022
National Reconstruction Fund Corporation Bill 2022
1
A Bill for an Act to establish the National
1
Reconstruction Fund Corporation, and for related
2
purposes
3
The Parliament of Australia enacts:
4
Part 1--Preliminary
5
6
1 Short title
7
This Act is the
National Reconstruction Fund Corporation Act
8
2022
.
9
Part 1
Preliminary
Section 2
2
National Reconstruction Fund Corporation Bill 2022
No. , 2022
2 Commencement
1
(1) Each provision of this Act specified in column 1 of the table
2
commences, or is taken to have commenced, in accordance with
3
column 2 of the table. Any other statement in column 2 has effect
4
according to its terms.
5
6
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. The whole of
this Act
A single day to be fixed by Proclamation.
However, if the provisions do not commence
within the period of 6 months beginning on
the day this Act receives the Royal Assent,
they commence on the day after the end of
that period.
Note:
This table relates only to the provisions of this Act as originally
7
enacted. It will not be amended to deal with any later amendments of
8
this Act.
9
(2) Any information in column 3 of the table is not part of this Act.
10
Information may be inserted in this column, or information in it
11
may be edited, in any published version of this Act.
12
3 Object
13
The object of this Act is to establish the National Reconstruction
14
Fund Corporation to facilitate increased flows of finance into
15
priority areas of the Australian economy.
16
4 Simplified outline of this Act
17
•
There is to be a National Reconstruction Fund Corporation.
18
•
The functions of the Corporation include:
19
(a)
the Corporation's investment functions; and
20
(b)
to liaise with relevant persons and bodies, including
21
other Commonwealth entities and State and Territory
22
Preliminary
Part 1
Section 4
No. , 2022
National Reconstruction Fund Corporation Bill 2022
3
governments, for the purposes of facilitating the
1
Corporation's investment functions.
2
•
There is to be a Board of the Corporation and a Chief
3
Executive Officer of the Corporation.
4
•
The Corporation can engage staff and consultants.
5
•
The National Reconstruction Fund Corporation Special
6
Account is established.
7
•
Amounts are to be credited to the Account.
8
•
The purpose of the Account is to make payments to the
9
Corporation.
10
•
The Corporation's investment functions are:
11
(a)
to provide financial accommodation for purposes
12
relating to any of the priority areas of the Australian
13
economy; and
14
(b)
to acquire equity interests in entities that carry on
15
activities in a priority area of the Australian economy.
16
•
The Corporation may perform its investment functions itself
17
or through subsidiaries.
18
•
Each investment of the Corporation must be solely or mainly
19
Australian-based.
20
•
The Minister administering this Act and the Finance Minister
21
jointly exercise various powers conferred by this Act in
22
relation to the Corporation.
23
•
The Corporation is bound by the Investment Mandate given to
24
it by the Ministers.
25
Note:
For the Corporation's investment functions, see section 63.
26
Part 1
Preliminary
Section 5
4
National Reconstruction Fund Corporation Bill 2022
No. , 2022
5 Definitions
1
In this Act:
2
Account
means the National Reconstruction Fund Corporation
3
Special Account established by section 51.
4
acquire
includes:
5
(a) acquire by way of issue; and
6
(b) acquire by way of formation.
7
Note:
Formation of a partnership involves acquiring an interest in the
8
partnership.
9
asset
means:
10
(a) any kind of real or personal property; or
11
(b) any legal or equitable estate or interest in real or personal
12
property; or
13
(c) any legal or equitable right.
14
Australia
, when used in a geographical sense, includes the external
15
Territories.
16
Board
means the Board of the Corporation.
17
Board member
means a member of the Board (and includes the
18
Chair).
19
CEO
means the Chief Executive Officer of the Corporation.
20
Chair
means the Chair of the Board.
21
Commonwealth entity
has the same meaning as in the
Public
22
Governance, Performance and Accountability Act 2013
.
23
Commonwealth place
means a Commonwealth place within the
24
meaning of the
Commonwealth Places (Application of Laws) Act
25
1970
.
26
company
means a body corporate.
27
Preliminary
Part 1
Section 5
No. , 2022
National Reconstruction Fund Corporation Bill 2022
5
constitutional corporation
means a corporation to which
1
paragraph 51(xx) of the Constitution applies. To avoid doubt, the
2
definition of
Corporation
does not apply to this definition.
3
constitutionally-supported activities
means activities covered by
4
one or more of the following paragraphs:
5
(a) activities carried out with respect to constitutional trade or
6
commerce;
7
(b) activities carried out with respect to the defence of Australia;
8
(c) activities with respect to a postal, telegraphic, telephonic or
9
other like service (within the meaning of paragraph 51(v) of
10
the Constitution);
11
(d) activities that contribute to the achievement of Australia's
12
obligations under the Paris Agreement;
13
(e) activities that contribute to the achievement of Australia's
14
obligations under an international agreement other than the
15
Paris Agreement;
16
(f) activities with respect to the provision of medical or dental
17
services by the Commonwealth;
18
(g) activities with respect to a fishery to which paragraph 51(x)
19
of the Constitution applies;
20
(h) activities with respect to astronomical or meteorological
21
observations;
22
(i) activities the carrying on of which would be supported by the
23
power of the Parliament to make laws with respect to
24
nationhood;
25
(j) activities carried out in a Territory;
26
(k) activities carried out in a Commonwealth place;
27
(l) activities with respect to persons, places, matters or things
28
outside Australia.
29
constitutional trade or commerce
means trade or commerce:
30
(a) between Australia and a place outside Australia; or
31
(b) among the States; or
32
(c) between a State and a Territory; or
33
(d) between 2 Territories; or
34
(e) within a Territory.
35
Part 1
Preliminary
Section 5
6
National Reconstruction Fund Corporation Bill 2022
No. , 2022
Corporation
means the National Reconstruction Fund Corporation
1
established by section 11.
2
Corporation body
means:
3
(a) the Corporation; or
4
(b) a designated subsidiary of the Corporation.
5
Corporation official
means:
6
(a) a Board member; or
7
(b) the CEO; or
8
(c) a member of the staff of the Corporation referred to in
9
section 46; or
10
(d) a person whose services are made available to the
11
Corporation under section 46; or
12
(e) a person engaged as a consultant under section 47.
13
Corporation's investment functions
: see section 63.
14
Corporation's investment powers
means:
15
(a) a power conferred on the Corporation by section 64, 65, 66
16
or 67; or
17
(b) a right or power conferred on the Corporation in its capacity
18
as the holder of an investment of the Corporation.
19
Corporation's money
: see section 57.
20
derivative
means a derivative (within the meaning of Chapter 7 of
21
the
Corporations Act 2001
).
22
designated subsidiary of the Corporation
means a subsidiary
23
through which the Corporation performs any of the Corporation's
24
investment functions.
25
entity
includes:
26
(a) a company; and
27
(b) a trust; and
28
(c) a partnership.
29
equity interest
means:
30
(a) a share in a company; or
31
Preliminary
Part 1
Section 5
No. , 2022
National Reconstruction Fund Corporation Bill 2022
7
(b) an interest in a trust; or
1
(c) an interest in a partnership; or
2
(d) an interest specified in the rules;
3
but does not include an interest that, under the rules, is taken to not
4
be an equity interest for the purposes of this Act.
5
Note:
For specification by class, see subsection 13(3) of the
Legislation Act
6
2003
.
7
Finance Minister
means the Minister administering the
Public
8
Governance, Performance and Accountability Act 2013
.
9
financial accommodation
means:
10
(a) financial accommodation in the form of a loan; or
11
(b) financial accommodation in the form of a letter of credit; or
12
(c) financial accommodation in the form of a purchase of bonds
13
or other debt securities; or
14
(d) financial accommodation in the form of a guarantee; or
15
(e) financial accommodation in another form;
16
but does not include:
17
(f) the acquisition of one or more equity interests; or
18
(g) a monetary grant (whether or not subject to conditions) that
19
is, or may reasonably be regarded as the equivalent of, a gift.
20
guarantee
includes any form of monetary commitment supporting
21
the performance of an obligation.
22
international agreement
means an agreement whose parties are:
23
(a) Australia and a foreign country; or
24
(b) Australia and 2 or more foreign countries.
25
Investment Mandate
: see section 71.
26
investment of a Corporation body
means:
27
(a) if the Corporation body is the Corporation--an investment of
28
the Corporation; or
29
(b) if the Corporation body is a designated subsidiary of the
30
Corporation--an investment of the designated subsidiary.
31
investment of a designated subsidiary of the Corporation
means:
32
Part 1
Preliminary
Section 5
8
National Reconstruction Fund Corporation Bill 2022
No. , 2022
(a) a loan made by the designated subsidiary; or
1
(b) a letter of credit issued by the designated subsidiary; or
2
(c) a bond held by the designated subsidiary; or
3
(d) a guarantee given by the designated subsidiary; or
4
(e) an equity interest held by the designated subsidiary; or
5
(f) any other asset, right or obligation held by the designated
6
subsidiary;
7
as a result of the Corporation's investment functions being
8
performed through the designated subsidiary.
9
investment of the Corporation
means:
10
(a) a loan made by the Corporation; or
11
(b) a letter of credit issued by the Corporation; or
12
(c) a bond held by the Corporation; or
13
(d) a guarantee given by the Corporation; or
14
(e) an equity interest held by the Corporation; or
15
(f) any other asset, right or obligation held by the Corporation;
16
as a result of the Corporation's performance of the Corporation's
17
investment functions.
18
investment powers
, when used in relation to a designated
19
subsidiary of the Corporation, means:
20
(a) a power conferred on the designated subsidiary by section 64,
21
65, 66 or 67; or
22
(b) a right or power conferred on the designated subsidiary in its
23
capacity as the holder of an investment of the designated
24
subsidiary.
25
likely to prejudice national security
: something is
likely to
26
prejudice national security
if there is a real, and not merely a
27
remote, possibility that it will prejudice national security
.
28
Ministers
means:
29
(a) the Minister administering this Act; and
30
(b) the Finance Minister.
31
national security
has the same meaning as in the
National Security
32
Information (Criminal and Civil Proceedings) Act 2004
.
33
Preliminary
Part 1
Section 5
No. , 2022
National Reconstruction Fund Corporation Bill 2022
9
national security agency
means an agency that is a member of the
1
national intelligence community (within the meaning of the
Office
2
of National Intelligence Act 2018
).
3
national security information
means information the publication
4
of which is likely to prejudice national security.
5
nominated Minister:
see section 86.
6
official information
means information that:
7
(a) was obtained by a person in the person's capacity as a
8
Corporation official; and
9
(b) relates to the affairs of a person other than a Corporation
10
official.
11
operating balance
means the amount agreed under paragraph 56(c)
12
to be the operating balance.
13
Paris Agreement
means the Paris Agreement, done at Paris on
14
12 December 2015, as amended and in force for Australia from
15
time to time.
16
Note:
The Agreement is in Australian Treaty Series 2016 No. 24 ([2016]
17
ATS 24) and could in 2022 be viewed in the Australian Treaties
18
Library on the AustLII website (http://www.austlii.edu.au).
19
person
includes a partnership.
20
Note:
See also subsection 2C(1) of the
Acts Interpretation Act 1901
.
21
prescribed
means prescribed by the rules.
22
priority area of the Australian economy
: see section 6.
23
quarter
: see subsection 82(2).
24
realise
includes redeem or dispose of.
25
rules
means rules made under section 92.
26
sensitive financial intelligence information
means:
27
(a) information given in compliance with subsection 41(2) of the
28
Anti-Money Laundering and Counter-Terrorism Financing
29
Act 2006
; or
30
Part 1
Preliminary
Section 6
10
National Reconstruction Fund Corporation Bill 2022
No. , 2022
(b) information given in compliance with a notice under
1
subsection 49(1) of the
Anti-Money Laundering and
2
Counter-Terrorism Financing Act 2006
.
3
solely or mainly Australian based
: see section 70.
4
staff member
of a national security agency includes the head
5
(however described) of the national security agency.
6
subsidiary
has the same meaning as in the
Public Governance,
7
Performance and Accountability Act 2013
.
8
surplus money
: see subsections 58(2) and (3).
9
uncommitted balance
, of the Account, at any time means the
10
amount standing to the credit of the Account at that time less the
11
total, at that time, of the Corporation's liabilities (whether actual or
12
contingent) in respect of guarantees given by the Corporation and
13
still in effect.
14
vacancy
, in relation to the office of a Board member, has a
15
meaning affected by subsection 22(4).
16
wholly-owned subsidiary
of the Corporation means a subsidiary of
17
the Corporation none of whose members is a person other than:
18
(a) the Corporation; or
19
(b) a nominee of the Corporation; or
20
(c) a subsidiary of the Corporation, being a subsidiary none of
21
whose members is a person other than:
22
(i) the Corporation; or
23
(ii) a nominee of the Corporation; or
24
(d) a nominee of such a subsidiary.
25
6 Priority areas of the Australian economy
26
The Ministers may, by legislative instrument, declare that each
27
area of the Australian economy specified in the declaration is a
28
priority area of the Australian economy
for the purposes of this
29
Act.
30
Preliminary
Part 1
Section 7
No. , 2022
National Reconstruction Fund Corporation Bill 2022
11
7 Crown to be bound
1
(1) This Act binds the Crown in each of its capacities.
2
(2) This Act does not make the Crown liable to a pecuniary penalty or
3
to be prosecuted for an offence.
4
8 Extension to external Territories
5
This Act extends to the external Territories.
6
9 Extra-territorial application
7
This Act extends to acts, omissions, matters and things outside
8
Australia.
9
Part 2
National Reconstruction Fund Corporation
Section 10
12
National Reconstruction Fund Corporation Bill 2022
No. , 2022
Part 2--National Reconstruction Fund
1
Corporation
2
3
10 Simplified outline of this Part
4
•
There is to be a National Reconstruction Fund Corporation.
5
•
The functions of the Corporation include:
6
(a)
the Corporation's investment functions; and
7
(b)
to liaise with relevant persons and bodies, including
8
other Commonwealth entities and State and Territory
9
governments, for the purposes of facilitating the
10
Corporation's investment functions.
11
Note:
For the Corporation's investment functions, see section 63.
12
11 Establishment
13
(1) The National Reconstruction Fund Corporation (the
Corporation
)
14
is established by this section.
15
(2) The Corporation:
16
(a) is a body corporate; and
17
(b) must have a seal; and
18
(c) may acquire, hold and dispose of assets; and
19
(d) may sue and be sued.
20
Note:
The
Public Governance, Performance and Accountability Act 2013
21
applies to the Corporation. That Act deals with matters relating to
22
corporate Commonwealth entities, including reporting and the use and
23
management of public resources.
24
(3) The Corporation's seal is to be kept in such custody as the Board
25
directs and must not be used except as authorised by the Board.
26
12 Corporation's functions
27
(1) The Corporation has the following functions:
28
National Reconstruction Fund Corporation
Part 2
Section 13
No. , 2022
National Reconstruction Fund Corporation Bill 2022
13
(a) the Corporation's investment functions (see section 63);
1
(b) to liaise with relevant persons and bodies, including other
2
Commonwealth entities and State and Territory governments,
3
for the purposes of facilitating the Corporation's investment
4
functions;
5
(c) any other functions conferred on the Corporation by this Act
6
or any other Commonwealth law;
7
(d) to do anything incidental or conducive to the performance of
8
the above functions.
9
(2) In performing its functions, the Corporation must act in a proper,
10
efficient and effective manner.
11
13 Corporation's powers
12
(1) The Corporation has power to do all things necessary or convenient
13
to be done for or in connection with the performance of its
14
functions.
15
(2) The powers of the Corporation may be exercised within or outside
16
Australia.
17
14 Corporation does not have privileges and immunities of the
18
Crown
19
The Corporation does not have the privileges and immunities of the
20
Crown in right of the Commonwealth.
21
Part 3
Board of Corporation
Division 1
Simplified outline
Section 15
14
National Reconstruction Fund Corporation Bill 2022
No. , 2022
Part 3--Board of Corporation
1
Division 1--Simplified outline
2
15 Simplified outline of this Part
3
•
There is to be a Board of the Corporation.
4
•
The Board's functions include:
5
(a)
to decide the strategies and policies to be followed by
6
the Corporation; and
7
(b)
to ensure the proper, efficient and effective performance
8
of the Corporation's functions.
9
•
The Ministers appoint Board members, including the Chair.
10
•
The Board is to hold meetings, as necessary, for the
11
performance of its functions.
12
Board of Corporation
Part 3
Establishment and functions
Division 2
Section 16
No. , 2022
National Reconstruction Fund Corporation Bill 2022
15
Division 2--Establishment and functions
1
16 Establishment
2
There is to be a Board of the Corporation.
3
17 Functions of the Board
4
(1) The functions of the Board are:
5
(a) to decide strategies and policies to be followed by the
6
Corporation; and
7
(b) to ensure the proper, efficient and effective performance of
8
the Corporation's functions; and
9
(c) any other functions conferred on the Board by this Act.
10
(2) The Board has the power to do all things necessary or convenient
11
to be done for or in connection with the performance of its
12
functions.
13
(3) Anything done in the name of, or on behalf of, the Corporation by
14
the Board, or with the authority of the Board, is taken to have been
15
done by the Corporation.
16
Part 3
Board of Corporation
Division 3
Board Members
Section 18
16
National Reconstruction Fund Corporation Bill 2022
No. , 2022
Division 3--Board Members
1
18 Membership
2
The Board consists of:
3
(a) the Chair; and
4
(b) at least 4, and no more than 6, other members.
5
19 Appointment of Board members
6
(1) Board members are to be appointed:
7
(a) by the Ministers by written instrument; and
8
(b) on a part-time basis.
9
(2) A person is not eligible for appointment as a Board member unless
10
the Ministers are satisfied that the person has:
11
(a) substantial experience or expertise; and
12
(b) professional credibility and significant standing;
13
in at least one of the following fields:
14
(c) banking and finance;
15
(d) venture capital, private equity or investment by way of
16
lending or provision of credit;
17
(e) economics;
18
(f) government funding programs or bodies;
19
(g) accounting;
20
(h) law;
21
(i) a priority area of the Australian economy;
22
(j) industrial relations;
23
(k) industry growth;
24
(l) any other field that the Ministers consider appropriate.
25
(3) The following persons are not eligible for appointment as a Board
26
member:
27
(a) an employee of the Commonwealth;
28
(b) the holder of a full-time office under a law of the
29
Commonwealth.
30
Board of Corporation
Part 3
Board Members
Division 3
Section 20
No. , 2022
National Reconstruction Fund Corporation Bill 2022
17
20 Chair
1
The Ministers must, by writing, appoint one Board member to be
2
the Chair.
3
21 Term of appointment
4
A Board member holds office for the period specified in the
5
instrument of appointment. The period must not be more than 5
6
years.
7
Note:
A Board member is eligible for reappointment: see section 33AA of
8
the
Acts Interpretation Act 1901
.
9
22 Acting appointments
10
(1) The Ministers may, by written instrument, appoint a Board
11
member to act as the Chair:
12
(a) during a vacancy in the office of Chair (whether or not an
13
appointment has previously been made to the office); or
14
(b) during any period, or during all periods, when the Chair:
15
(i) is absent from duty or from Australia; or
16
(ii) is, for any reason, unable to perform the duties of the
17
office.
18
(2) The Ministers may, by written instrument, appoint a person to act
19
as a Board member (other than the Chair):
20
(a) during a vacancy in the office of a Board member (other than
21
the Chair) whether or not an appointment has previously
22
been made to the office; or
23
(b) during any period, or during all periods, when a Board
24
member (other than the Chair):
25
(i) is absent from duty or from Australia; or
26
(ii) is, for any reason, unable to perform the duties of the
27
office.
28
Note:
Sections 33AB and 33A of the
Acts Interpretation Act 1901
have rules
29
that apply to acting appointments.
30
Part 3
Board of Corporation
Division 3
Board Members
Section 23
18
National Reconstruction Fund Corporation Bill 2022
No. , 2022
(3) A person is not eligible for appointment to act as a Board member
1
unless the person is eligible for appointment as a Board member
2
under section 19.
3
(4) For the purposes of a reference in:
4
(a) this Act to a
vacancy
in the office of a Board member; or
5
(b) the
Acts Interpretation Act 1901
to a
vacancy
in the
6
membership of a body;
7
there are taken to be 6 Board member offices in addition to the
8
Chair.
9
23 Remuneration
10
(1) A Board member is to be paid the remuneration that is determined
11
by the Remuneration Tribunal. If no determination of that
12
remuneration by the Tribunal is in operation, the member is to be
13
paid the remuneration that is prescribed by the rules.
14
(2) A Board member is to be paid the allowances that are prescribed
15
by the rules.
16
(3) This section has effect subject to the
Remuneration Tribunal Act
17
1973
.
18
24 Leave of absence
19
Chair
20
(1) The nominated Minister may grant leave of absence to the Chair on
21
the terms and conditions that the nominated Minister determines.
22
Other Board members
23
(2) The Chair may grant leave of absence to another Board member on
24
the terms and conditions that the Chair determines.
25
(3) The Chair must notify the Ministers if the Chair grants a Board
26
member leave of absence for a period that exceeds 3 months.
27
Board of Corporation
Part 3
Board Members
Division 3
Section 25
No. , 2022
National Reconstruction Fund Corporation Bill 2022
19
25 Resignation of Board members
1
(1) A Board member may resign the member's appointment by giving
2
the Ministers a written resignation.
3
(2) The resignation takes effect on:
4
(a) the day it is received by the Ministers (or if the Ministers
5
receive it on different days, the later of those days); or
6
(b) if a later day is specified in the resignation--on that later day.
7
26 Termination of appointment of Board members
8
The Ministers may terminate the appointment of a Board member:
9
(a) for misbehaviour; or
10
(b) if the member is unable to perform the duties of the
11
member's office because of physical or mental incapacity; or
12
(c) if the member:
13
(i) becomes bankrupt; or
14
(ii) applies to take the benefit of any law for the relief of
15
bankrupt or insolvent debtors; or
16
(iii) compounds with the member's creditors; or
17
(iv) makes an assignment of the member's remuneration for
18
the benefit of the member's creditors; or
19
(d) if the member is absent, except on leave of absence, from 3
20
consecutive meetings of the Board.
21
Note:
The appointment of a Board member may also be terminated under
22
section 30 of the
Public Governance, Performance and Accountability
23
Act 2013
(which deals with terminating the appointment of an
24
accountable authority, or a member of an accountable authority, for
25
contravening general duties of officials).
26
27 Other terms and conditions of Board members
27
A Board member holds office on the terms and conditions (if any)
28
in relation to matters not covered by this Act that are determined
29
by the Ministers.
30
Part 3
Board of Corporation
Division 4
Meetings of the Board
Section 28
20
National Reconstruction Fund Corporation Bill 2022
No. , 2022
Division 4--Meetings of the Board
1
28 Convening meetings
2
(1) The Board must hold the meetings that are necessary for the
3
efficient performance of its functions.
4
(2) Meetings are to be held at the times and places that the Board
5
determines.
6
Note:
See also section 33B of the
Acts Interpretation Act 1901
, which
7
contains extra rules about meetings by telephone etc.
8
(3) The Chair:
9
(a) may convene a meeting; and
10
(b) must convene at least 6 meetings each calendar year; and
11
(c) must convene a meeting within 30 days of receiving a written
12
request to do so from another Board member.
13
29 Presiding at meetings
14
(1) The Chair must preside at all meetings at which the Chair is
15
present.
16
(2) If the Chair is not present at a meeting, the other Board members
17
present must appoint one of themselves to preside.
18
30 Quorum
19
(1) At a meeting of the Board, a quorum is constituted by:
20
(a) 4 Board members; or
21
(b) at any time when there are only 5 Board members--3 Board
22
members.
23
(2) However, if:
24
(a) a Board member is required by rules made for the purposes
25
of section 29 of the
Public Governance, Performance and
26
Accountability Act 2013
not to be present during the
27
deliberations, or to take part in any decision, of the Board
28
with respect to a particular matter; and
29
Board of Corporation
Part 3
Meetings of the Board
Division 4
Section 31
No. , 2022
National Reconstruction Fund Corporation Bill 2022
21
(b) when the member leaves the meeting concerned there is no
1
longer a quorum present;
2
the remaining members at the meeting constitute a quorum for the
3
purpose of any deliberation or decision at that meeting with respect
4
to that matter.
5
31 Voting at meetings
6
(1) A question arising at a meeting is to be determined by a majority of
7
the votes of the Board members present and voting.
8
(2) The person presiding at a meeting has a deliberative vote and, in
9
the event of an equality of votes, a casting vote.
10
32 Conduct of meetings
11
The Board may regulate proceedings at its meetings as it considers
12
appropriate.
13
33 Minutes
14
The Board must keep minutes of its meetings.
15
34 Decisions without meetings
16
(1) The Board is taken to have made a decision at a meeting if:
17
(a) without meeting, a majority of the Board members entitled to
18
vote on the proposed decision indicate agreement with the
19
decision; and
20
(b) that agreement is indicated in accordance with the method
21
determined by the Board under subsection (2); and
22
(c) all the Board members were informed of the proposed
23
decision, or reasonable efforts were made to inform all the
24
members of the proposed decision.
25
(2) Subsection (1) applies only if the Board:
26
(a) has determined that it may make decisions of that kind
27
without meeting; and
28
Part 3
Board of Corporation
Division 4
Meetings of the Board
Section 34
22
National Reconstruction Fund Corporation Bill 2022
No. , 2022
(b) has determined the method by which Board members are to
1
indicate agreement with proposed decisions.
2
(3) For the purposes of paragraph (1)(a), a Board member is not
3
entitled to vote on a proposed decision if the member would not
4
have been entitled to vote on that proposal if the matter had been
5
considered at a meeting of the Board.
6
(4) The Board must keep a record of decisions made in accordance
7
with this section.
8
Chief Executive Officer, staff and consultants and committees
Part 4
Simplified outline
Division 1
Section 35
No. , 2022
National Reconstruction Fund Corporation Bill 2022
23
Part 4--Chief Executive Officer, staff and
1
consultants and committees
2
Division 1--Simplified outline
3
35 Simplified outline of this Part
4
•
There is to be a Chief Executive Officer of the Corporation.
5
•
The CEO is responsible for the day-to-day administration of
6
the Corporation.
7
•
The Corporation can engage staff and consultants.
8
Part 4
Chief Executive Officer, staff and consultants and committees
Division 2
Chief Executive Officer of Corporation
Section 36
24
National Reconstruction Fund Corporation Bill 2022
No. , 2022
Division 2--Chief Executive Officer of Corporation
1
36 Establishment
2
There is to be a Chief Executive Officer of the Corporation.
3
37 Functions of the CEO
4
(1) The CEO is responsible for the day-to-day administration of the
5
Corporation.
6
(2) The CEO has power to do all things necessary or convenient to be
7
done for or in connection with the performance of the CEO's
8
duties.
9
(3) The CEO is to act in accordance with policies determined by the
10
Board.
11
(4) The Board may give written directions to the CEO about the
12
performance of the CEO's responsibilities.
13
(5) The CEO must comply with a direction under subsection (4).
14
(6) A direction under subsection (4) is not a legislative instrument.
15
38 Appointment
16
(1) The CEO is to be appointed by the Board after consultation with
17
the Ministers.
18
(2) The CEO is to be appointed:
19
(a) by written instrument; and
20
(b) on a full-time basis.
21
(3) The CEO must not be a Board member.
22
(4) The Board must appoint the first CEO no later than 6 months after
23
the commencement of this section.
24
(5) Consultation under subsection (1) must be in accordance with such
25
requirements (if any) as are prescribed by the rules.
26
Chief Executive Officer, staff and consultants and committees
Part 4
Chief Executive Officer of Corporation
Division 2
Section 39
No. , 2022
National Reconstruction Fund Corporation Bill 2022
25
39 CEO holds office during Board's pleasure
1
(1) The CEO holds office during the Board's pleasure.
2
(2) The Chair must consult with the Ministers before the Board
3
terminates the appointment of the CEO.
4
(3) The Chair must notify the Ministers if the Board terminates the
5
appointment of the CEO.
6
(4) Consultation under subsection (2) must be in accordance with such
7
requirements (if any) as are prescribed by the rules.
8
40 Acting appointments
9
The Board may, by written instrument and after consultation with
10
the Ministers, appoint a person (other than a Board member) to act
11
as the CEO:
12
(a) during a vacancy in the office of the CEO (whether or not an
13
appointment has previously been made to the office); or
14
(b) during any period, or during all periods, when the CEO:
15
(i) is absent from duty or from Australia; or
16
(ii) is, for any reason, unable to perform the duties of the
17
office.
18
Note:
Sections 33AB and 33A of the
Acts Interpretation Act 1901
have rules
19
that apply to acting appointments.
20
41 Remuneration of CEO
21
(1) The CEO is to be paid the remuneration that is determined by the
22
Remuneration Tribunal. If no determination of that remuneration
23
by the Tribunal is in operation, the CEO is to be paid the
24
remuneration that is prescribed under subsection (4).
25
(2) The CEO is to be paid the allowances that are prescribed under
26
subsection (4).
27
(3) This section has effect subject to the
Remuneration Tribunal Act
28
1973
.
29
(4) The Ministers may, by legislative instrument, prescribe:
30
Part 4
Chief Executive Officer, staff and consultants and committees
Division 2
Chief Executive Officer of Corporation
Section 42
26
National Reconstruction Fund Corporation Bill 2022
No. , 2022
(a) remuneration for the purposes of subsection (1); and
1
(b) allowances for the purposes of subsection (2).
2
42 Outside employment
3
(1) The CEO must not engage in paid employment outside the duties
4
of the CEO's office without the Chair's approval.
5
(2) The Chair must notify the Ministers of any approval given under
6
subsection (1).
7
43 Other terms and conditions
8
The CEO holds office on the terms and conditions (if any) in
9
relation to matters not covered by this Act that are determined by
10
the Board.
11
44 Disclosure of interests
12
(1) A disclosure by the CEO under section 29 of the
Public
13
Governance, Performance and Accountability Act 2013
(which
14
deals with the duty to disclose interests) must be made to the
15
Board.
16
(2) Subsection (1) applies in addition to any rules made for the
17
purposes of that section.
18
(3) For the purposes of this Act and the
Public Governance,
19
Performance and Accountability Act 2013
, the CEO is taken not to
20
have complied with section 29 of that Act if the CEO does not
21
comply with subsection (1) of this section.
22
45 Resignation
23
(1) The CEO may resign the CEO's appointment by giving the Chair a
24
written resignation.
25
(2) The resignation takes effect on the day it is received by the Chair
26
or, if a later day is specified in the resignation, on that later day.
27
Chief Executive Officer, staff and consultants and committees
Part 4
Chief Executive Officer of Corporation
Division 2
Section 45
No. , 2022
National Reconstruction Fund Corporation Bill 2022
27
(3) The Chair must notify the Ministers of the CEO's resignation as
1
soon as practicable after it is received by the Chair.
2
Part 4
Chief Executive Officer, staff and consultants and committees
Division 3
Staff and consultants
Section 46
28
National Reconstruction Fund Corporation Bill 2022
No. , 2022
Division 3--Staff and consultants
1
46 Staff
2
(1) The Corporation may employ such persons as it considers
3
necessary for the performance of its functions and the exercise of
4
its powers.
5
(2) An employee is to be employed on the terms and conditions that
6
the Corporation determines in writing.
7
(3) The Corporation may arrange with:
8
(a) an Agency Head (within the meaning of the
Public Service
9
Act 1999
); or
10
(b) a body established for a public purpose by a law of the
11
Commonwealth;
12
for the services of officers or employees of the Agency or body to
13
be made available to the Corporation.
14
(4) The Corporation may enter into an arrangement with the
15
appropriate authority of a State or Territory for the services of:
16
(a) officers or employees of the Public Service of the State or
17
Territory; or
18
(b) officers or employees of a State or Territory statutory
19
authority;
20
to be made available to the Corporation.
21
47 Consultants
22
(1) The Corporation may engage consultants to assist in the
23
performance of its functions.
24
(2) The consultants are to be engaged on the terms and conditions that
25
the Corporation determines.
26
Chief Executive Officer, staff and consultants and committees
Part 4
Committees
Division 4
Section 48
No. , 2022
National Reconstruction Fund Corporation Bill 2022
29
Division 4--Committees
1
48 Committees
2
(1) The Board may establish committees to advise or assist in the
3
performance of the Board's or the Corporation's functions.
4
(2) A committee may be constituted:
5
(a) wholly by Board members; or
6
(b) wholly by persons who are not Board members; or
7
(c) partly by Board members and partly by other persons.
8
(3) The Board may determine, in relation to a committee established
9
under this section:
10
(a) the committee's terms of reference; and
11
(b) the terms and conditions of appointment of the members of
12
the committee; and
13
(c) the procedures to be followed by the committee.
14
49 Remuneration and allowances
15
(1) If the Board decides that a committee member who is also a Board
16
member is to be remunerated in relation to the member's
17
committee membership, the committee member is to be paid the
18
remuneration that is determined by the Remuneration Tribunal. If
19
no determination of that remuneration by the Tribunal is in
20
operation, the committee member is to be paid the remuneration
21
that is prescribed by the rules.
22
(2) A committee member who is a Board member is to be paid the
23
allowances that are prescribed by the rules.
24
(3) Subsections (1) and (2) have effect subject to the
Remuneration
25
Tribunal Act 1973
.
26
(4) If the Board decides that a committee member other than a Board
27
member is to be remunerated, the committee member is to be paid
28
the remuneration and allowances determined by the Corporation in
29
writing.
30
Part 5
Financial arrangements
Division 1
Simplified outline
Section 50
30
National Reconstruction Fund Corporation Bill 2022
No. , 2022
Part 5--Financial arrangements
1
Division 1--Simplified outline
2
50 Simplified outline of this Part
3
•
The National Reconstruction Fund Corporation Special
4
Account is established.
5
•
Amounts are to be credited to the Account.
6
•
The purpose of the Account is to make payments to the
7
Corporation.
8
•
If the Corporation has surplus money, the Ministers may
9
direct the Corporation to pay to the Commonwealth an
10
amount equal to the whole or a part of the excess.
11
•
The Corporation may borrow money for limited purposes.
12
Financial arrangements
Part 5
National Reconstruction Fund Corporation Special Account
Division 2
Section 51
No. , 2022
National Reconstruction Fund Corporation Bill 2022
31
Division 2--National Reconstruction Fund Corporation
1
Special Account
2
Subdivision A--Establishment of Account
3
51 Establishment of Account
4
(1) The National Reconstruction Fund Corporation Special Account is
5
established by this section.
6
(2) The Account is a special account for the purposes of the
Public
7
Governance, Performance and Accountability Act 2013
.
8
Subdivision B--Credits
9
52 Credits to the Account
10
(1) There must be credited to the Account amounts equal to the
11
following:
12
(a) $5 billion, to be credited on the day on which this section
13
commences;
14
(b) amounts paid to the Commonwealth under section 58.
15
(2) The Ministers may, by writing, determine that:
16
(a) a specified amount is to be credited to the Account on a
17
specified day; or
18
(b) a specified amount is to be credited to the Account in
19
specified instalments on specified days.
20
Note:
For variation and revocation, see subsection 33(3) of the
Acts
21
Interpretation Act 1901
.
22
(3) There must be credited to the Account any other money
23
appropriated by the Parliament for the purposes of the Account.
24
(4) The Ministers must ensure that the total of the amounts credited to
25
the Account under subsection (2) before 2 July 2029 is equal to
26
$10 billion.
27
Part 5
Financial arrangements
Division 2
National Reconstruction Fund Corporation Special Account
Section 53
32
National Reconstruction Fund Corporation Bill 2022
No. , 2022
(5) A determination under subsection (2) is a legislative instrument,
1
but section 42 (disallowance) of the
Legislation Act 2003
does not
2
apply to the determination.
3
Subdivision C--Debits
4
53 Purposes of the Account
5
The purpose of the Account is to make payments to the
6
Corporation, so long as the payments are authorised by the
7
nominated Minister under subsection 55(1).
8
54 Corporation's request for a payment for itself
9
(1) The Corporation may request a payment by the Commonwealth of
10
a specified amount:
11
(a) to meet liabilities or expenses of the Corporation:
12
(i) that are already due; or
13
(ii) that will, or that are expected to, become due during the
14
period specified in the request; or
15
(b) so that the total balance of the Corporation's bank account or
16
accounts is at least the operating balance.
17
(2) The Corporation's request must:
18
(a) be in writing; and
19
(b) specify:
20
(i) the liabilities or expenses the payment is to meet; or
21
(ii) the amount by which the Corporation's bank balance
22
falls short of the operating balance; and
23
(c) be in accordance with the agreement under section 56.
24
(3) The Corporation must not request a payment under subsection (1)
25
of an amount that would exceed the uncommitted balance of the
26
Account at the time the request is made.
27
55 Nominated Minister's authorisation of payment to Corporation
28
(1) As soon as practicable after a request is made under section 54, the
29
nominated Minister must:
30
Financial arrangements
Part 5
National Reconstruction Fund Corporation Special Account
Division 2
Section 56
No. , 2022
National Reconstruction Fund Corporation Bill 2022
33
(a) determine whether the request is in accordance with the
1
agreement under section 56; and
2
(b) if satisfied that it is--give written authorisation for the
3
requested payment.
4
(2) If the nominated Minister gives written authorisation for the
5
requested payment, the Commonwealth must, as soon as
6
practicable, pay the authorised amount to the Corporation.
7
Note:
See also section 53.
8
(3) An authorisation under subsection (1) is not a legislative
9
instrument.
10
56 Agreement between nominated Minister and Corporation
11
The following matters are to be as agreed between the nominated
12
Minister and the Corporation in relation to requests for payments
13
under section 54:
14
(a) how requests are to be made, including:
15
(i) the form in which a request is to be made; and
16
(ii) the person to whom a request is to be given;
17
(b) the period that may be specified in a request as mentioned in
18
subparagraph 54(1)(a)(ii);
19
(c) the amount of the Corporation's operating balance for the
20
purposes of paragraph 54(1)(b).
21
Part 5
Financial arrangements
Division 3
The Corporation's money
Section 57
34
National Reconstruction Fund Corporation Bill 2022
No. , 2022
Division 3--The Corporation's money
1
57 Application of the Corporation's money
2
(1) The
Corporation's money
consists of:
3
(a) money paid to the Corporation under subsection 55(2); and
4
(b) any other money received by the Corporation.
5
(2) The Corporation's money is to be applied only:
6
(a) in performing the Corporation's investment functions; and
7
(b) in exercising the Corporation's investment powers; and
8
(c) in paying or discharging the costs, expenses and other
9
obligations incurred by the Corporation in the performance of
10
the Corporation's functions; and
11
(d) in paying any remuneration and allowances payable to any
12
person under this Act; and
13
(e) in making payments to the Commonwealth under section 58.
14
(3) Subsection (2) does not prevent investment, under section 59 of the
15
Public Governance, Performance and Accountability Act 2013
, of
16
money that is not immediately required for the purposes of the
17
Corporation.
18
58 Managing surplus money
19
(1) If, at any time, the sum of the surplus money of:
20
(a) the Corporation; and
21
(b) any wholly-owned subsidiaries of the Corporation;
22
exceeds:
23
(c) $20 million; or
24
(d) if the rules prescribe a different amount--the prescribed
25
amount;
26
the Ministers may, in writing:
27
(e) direct the Corporation to pay to the Commonwealth an
28
amount equal to the excess; or
29
(f) direct the Corporation to pay to the Commonwealth an
30
amount equal to a specified part of the excess.
31
Financial arrangements
Part 5
The Corporation's money
Division 3
Section 59
No. , 2022
National Reconstruction Fund Corporation Bill 2022
35
(2) Money of the Corporation is
surplus money
if it is not immediately
1
required for the purposes of the Corporation.
2
(3) Money of a wholly-owned subsidiary is
surplus money
if it is not
3
immediately required for the purposes of the subsidiary.
4
(4) The Corporation must comply with the direction.
5
Note:
The amount paid by the Corporation is credited to the Account under
6
paragraph 52(1)(b).
7
(5) The rules may prescribe an amount for the purposes of
8
paragraph (1)(d) by prescribing either or both of the following:
9
(a) an amount;
10
(b) a method or methods of calculating an amount.
11
59 Borrowing
12
Borrowing by the Corporation
13
(1) The Corporation must not borrow money for a purpose in
14
connection with the Corporation's investment functions unless the
15
borrowing is authorised:
16
(a) by subsection (2) or (3); or
17
(b) under section 57 of the
Public Governance, Performance and
18
Accountability Act 2013
.
19
(2) The Corporation is authorised to borrow money for a purpose in
20
connection with the Corporation's functions if:
21
(a) the purpose of the borrowing is to enable the Corporation to
22
cover settlement of a transaction in connection with the
23
Corporation's functions; and
24
(b) at the time the decision was made to enter into the
25
transaction, it was likely that the borrowing would not be
26
needed; and
27
(c) the period of the borrowing does not exceed 7 days.
28
(3) The Corporation is authorised to borrow money for a purpose in
29
connection with the Corporation's functions if the borrowing takes
30
place in the circumstances (if any) prescribed by the rules.
31
Part 5
Financial arrangements
Division 3
The Corporation's money
Section 60
36
National Reconstruction Fund Corporation Bill 2022
No. , 2022
Borrowing by subsidiaries
1
(5) A wholly-owned subsidiary of the Corporation may borrow money
2
from the Corporation (and the borrowing need not comply with
3
subsection (2) or (3)).
4
(6) Section 86 of the
Public Governance, Performance and
5
Accountability Act 2013
(which deals with subsidiaries of
6
corporate Commonwealth entities) does not apply to the
7
Corporation in relation to borrowings by subsidiaries authorised by
8
subsection (5).
9
60 Receipt of gifts
10
(1) The Corporation may accept a gift of money if the nominated
11
Minister authorises the Corporation, by written notice given to the
12
Board, to accept the gift.
13
(2) The Corporation may accept a gift of one or more equity interests
14
if:
15
(a) the equity interests could have been acquired by the
16
Corporation; and
17
(b) the nominated Minister authorises the Corporation, by
18
written notice given to the Board, to accept the gift.
19
61 Taxation
20
(1) To avoid doubt, for the purposes of section 50-25 of the
Income
21
Tax Assessment Act 1997
, the Corporation is taken to be a public
22
authority constituted under an Australian law.
23
Note:
This means that the Corporation is exempt from income tax.
24
(2) To avoid doubt, the Corporation is not subject to taxation under a
25
law of a State or Territory, if the Commonwealth is not subject to
26
the taxation.
27
Investment functions and powers
Part 6
Simplified outline of this Part
Division 1
Section 62
No. , 2022
National Reconstruction Fund Corporation Bill 2022
37
Part 6--Investment functions and powers
1
Division 1--Simplified outline of this Part
2
62 Simplified outline of this Part
3
•
The Corporation's investment functions are:
4
(a)
to provide financial accommodation for purposes
5
relating to any of the priority areas of the Australian
6
economy; and
7
(b)
to acquire equity interests in entities that carry on
8
activities in a priority area of the Australian economy.
9
•
The Corporation may perform its investment functions itself
10
or through subsidiaries.
11
•
Each investment of the Corporation must be solely or mainly
12
Australian-based.
13
•
The Corporation is bound by the Investment Mandate given to
14
it by the Ministers.
15
Part 6
Investment functions and powers
Division 2
Investment functions and powers
Section 63
38
National Reconstruction Fund Corporation Bill 2022
No. , 2022
Division 2--Investment functions and powers
1
63 Investment functions
2
(1) The Corporation's
investment functions
are:
3
(a) to provide financial accommodation to constitutional
4
corporations, where the financial accommodation satisfies
5
the following conditions:
6
(i) the financial accommodation is for purposes relating to
7
any of the priority areas of the Australian economy;
8
(ii) the financial accommodation assists the constitutional
9
corporation in carrying out its activities; and
10
(b) to provide financial accommodation to entities (other than
11
constitutional corporations, States or Territories) or
12
individuals, where the financial accommodation satisfies the
13
following conditions:
14
(i) the financial accommodation is for purposes relating to
15
any of the priority areas of the Australian economy;
16
(ii) the financial accommodation assists the entity or
17
individual in carrying out constitutionally-supported
18
activities; and
19
(c) to acquire equity interests in entities that satisfy the following
20
conditions:
21
(i) any of the entity's activities are in a priority area of the
22
Australian economy;
23
(ii) all of the entity's activities are
24
constitutionally-supported activities; and
25
(d) to provide financial accommodation to the States and
26
Territories, where the financial accommodation satisfies the
27
following conditions:
28
(i) the financial accommodation is for purposes relating to
29
any of the priority areas of the Australian economy;
30
(ii) the financial accommodation is provided by way of the
31
grant of financial assistance to the State or Territory.
32
Investment functions and powers
Part 6
Investment functions and powers
Division 2
Section 64
No. , 2022
National Reconstruction Fund Corporation Bill 2022
39
Subsidiaries
1
(2) The Corporation may perform its investment functions itself or
2
through subsidiaries.
3
64 Terms and conditions of financial accommodation provided to a
4
constitutional corporation
5
(1) This section applies to financial accommodation provided to a
6
constitutional corporation by a Corporation body.
7
(2) The terms and conditions on which that financial accommodation
8
is provided must be set out in a written agreement between the
9
Corporation body and the constitutional corporation.
10
(3) The constitutional corporation must comply with the terms and
11
conditions.
12
65 Terms and conditions of financial accommodation provided to an
13
entity (other than a constitutional corporation, a State or
14
a Territory) or an individual
15
(1) This section applies to financial accommodation provided to an
16
entity (other than a constitutional corporation, a State or a
17
Territory) or an individual by a Corporation body.
18
(2) The terms and conditions on which that financial accommodation
19
is provided must be set out in a written agreement between the
20
Corporation body and the entity or individual.
21
(3) The entity or individual must comply with the terms and
22
conditions.
23
66 Terms and conditions of financial accommodation provided to a
24
State or Territory
25
(1) This section applies to financial accommodation provided to a
26
State or Territory by a Corporation body.
27
Part 6
Investment functions and powers
Division 2
Investment functions and powers
Section 67
40
National Reconstruction Fund Corporation Bill 2022
No. , 2022
(2) The terms and conditions on which that financial accommodation
1
is provided must be set out in a written agreement between the
2
Corporation body and the State or Territory.
3
67 A Corporation body may realise, or otherwise deal with,
4
investments
5
A Corporation body may realise, or otherwise deal with, an
6
investment of the Corporation body.
7
68 A Corporation body must realise equity interests in certain
8
circumstances
9
(1) This section applies if:
10
(a) a Corporation body holds one or more equity interests in an
11
entity; and
12
(b) the Corporation body becomes aware of the fact that one or
13
more of the activities of the entity are not
14
constitutionally-supported activities.
15
(2) The Corporation body must:
16
(a) realise the equity interests; and
17
(b) do so as soon as reasonably practicable in the circumstances
18
after the Corporation body becomes aware of the fact.
19
69 Investments of Corporation bodies to be solely or mainly
20
Australian-based
21
(1) The Board must take all reasonable steps to ensure that each
22
investment of a Corporation body is at all times solely or mainly
23
Australian-based.
24
(2) As soon as practicable after the Board becomes aware that an
25
investment of a Corporation body has ceased to be, or never was,
26
solely or mainly Australian-based, the Board must give the
27
Ministers a written statement:
28
(a) informing the Ministers; and
29
Investment functions and powers
Part 6
Investment functions and powers
Division 2
Section 70
No. , 2022
National Reconstruction Fund Corporation Bill 2022
41
(b) setting out the action that the Board proposes to take in order
1
to ensure that all investments of the Corporation body are
2
solely or mainly Australian-based.
3
(3) If the Ministers are satisfied that an investment of a Corporation
4
body has ceased to be, or was never, solely or mainly
5
Australian-based, the Ministers may (whether or not the Board has
6
given the Ministers a statement under subsection (2)), by written
7
notice given to the Board, direct the Board:
8
(a) to give the Ministers, within a period specified in the notice,
9
a written explanation; and
10
(b) to take action specified in the notice, within a period
11
specified in the notice, in order to ensure that all investments
12
of the Corporation body are solely or mainly
13
Australian-based.
14
(4) The Board must comply with a direction under subsection (3).
15
(5) The fact that an investment of a Corporation body has ceased to be,
16
or never was, solely or mainly Australian-based, does not affect the
17
validity of any transaction.
18
(6) A direction under subsection (3) is not a legislative instrument.
19
70 When an investment of a Corporation body is solely or mainly
20
Australian-based
21
(1) An investment of a Corporation body is
solely or mainly
22
Australian-based
if the Board is satisfied, in accordance with
23
guidelines made under subsection (2), that the investment is solely
24
or mainly Australian-based.
25
(2) The Board must, by writing, make guidelines setting out
26
circumstances, conditions or other matters to which the Board will
27
have regard in satisfying itself that an investment of a Corporation
28
body is solely or mainly Australian-based.
29
(3) The guidelines must not be inconsistent with the Investment
30
Mandate.
31
Part 6
Investment functions and powers
Division 2
Investment functions and powers
Section 70
42
National Reconstruction Fund Corporation Bill 2022
No. , 2022
(4) The Board must publish guidelines made under subsection (2) on
1
the Corporation's website.
2
(5) Guidelines made under subsection (2) are not a legislative
3
instrument.
4
Investment functions and powers
Part 6
Performance of investment functions etc.
Division 3
Section 71
No. , 2022
National Reconstruction Fund Corporation Bill 2022
43
Division 3--Performance of investment functions etc.
1
71 Investment Mandate
2
(1) The Ministers may, by legislative instrument, give the Board
3
directions about the performance of the Corporation's investment
4
functions or the exercise of the Corporation's investment powers
5
(or both), and must give at least one such direction. The directions
6
together constitute the
Investment Mandate
.
7
Note:
For variation and revocation, see subsection 33(3) of the
Acts
8
Interpretation Act 1901
.
9
(2) In giving a direction, the Ministers must have regard to:
10
(a) the object of this Act; and
11
(b) any other matters the Ministers consider relevant.
12
(3) Without limiting subsection (1), a direction may set out the policies
13
to be pursued by the Corporation in relation to any or all of the
14
following:
15
(a) matters of risk and return;
16
(b) the allocation of investments of the Corporation between the
17
various priority areas of the Australian economy;
18
(c) the types of financial accommodation that may be provided
19
to constitutional corporations by a Corporation body and the
20
circumstances in which they may be provided;
21
(d) the types of constitutional corporations to which financial
22
accommodation may be provided by a Corporation body;
23
(e) providing financial accommodation to constitutional
24
corporations on concessional terms;
25
(f) the types of financial accommodation that may be provided
26
to entities (other than constitutional corporations, States or
27
Territories) or individuals by a Corporation body and the
28
circumstances in which they may be provided;
29
(g) the types of entities (other than constitutional corporations,
30
States or Territories) or individuals to which financial
31
accommodation may be provided by a Corporation body;
32
Part 6
Investment functions and powers
Division 3
Performance of investment functions etc.
Section 72
44
National Reconstruction Fund Corporation Bill 2022
No. , 2022
(h) providing financial accommodation to entities (other than
1
constitutional corporations, States or Territories) or
2
individuals on concessional terms;
3
(i) the types of equity interests that may be acquired by a
4
Corporation body;
5
(j) the types of entities in which a Corporation body may acquire
6
equity interests;
7
(k) acquiring equity interests on concessional terms;
8
(l) the types of financial accommodation that may be provided
9
to the States and Territories by a Corporation body and the
10
circumstances in which they may be provided;
11
(m) providing financial accommodation to the States and
12
Territories on concessional terms;
13
(n) the types of derivatives which the Corporation may acquire;
14
(o) national security;
15
(p) broad operational matters;
16
(q) other matters the Ministers consider appropriate to deal with
17
in a direction under subsection (1).
18
72 Limits on Investment Mandate
19
The Ministers must not give a direction under subsection 71(1):
20
(a) that has the purpose, or has or is likely to have the effect, of
21
directly or indirectly requiring a Corporation body to, or not
22
to, make a particular provision of financial accommodation
23
to a constitutional corporation, a State, a Territory, an entity
24
or an individual; or
25
(b) that has the purpose, or has or is likely to have the effect, of
26
directly or indirectly requiring a Corporation body to, or not
27
to, make a particular acquisition of one or more equity
28
interests; or
29
(c) that is inconsistent with this Act (including the object of this
30
Act).
31
73 Board to be consulted on Investment Mandate
32
(1) Before giving the Board a direction under subsection 71(1), the
33
Ministers must:
34
Investment functions and powers
Part 6
Performance of investment functions etc.
Division 3
Section 74
No. , 2022
National Reconstruction Fund Corporation Bill 2022
45
(a) send a draft of the direction to the Board; and
1
(b) invite the Board to make a submission to the Ministers on the
2
draft direction within a reasonable time limit specified by the
3
Ministers; and
4
(c) consider any submission that is received from the Board
5
within that time limit.
6
(2) If:
7
(a) the Ministers give the Board a direction under
8
subsection 71(1); and
9
(b) the Board made a submission to the Ministers on a draft of
10
the direction within the time limit specified by the Ministers;
11
the submission is to be tabled in each House of the Parliament with
12
the direction.
13
Note:
For tabling of the direction, see section 38 of the
Legislation Act 2003
.
14
(3) The Ministers must omit any national security information or
15
sensitive financial intelligence information from the submission
16
tabled under subsection (2).
17
74 Compliance with Investment Mandate
18
(1) The Board must take all reasonable steps to ensure that the
19
Corporation and its subsidiaries comply with the Investment
20
Mandate.
21
(2) As soon as practicable after the Board becomes aware that the
22
Corporation or one of its subsidiaries has failed to comply with the
23
Investment Mandate, the Board must give the Ministers a written
24
statement:
25
(a) informing the Ministers; and
26
(b) setting out the action that the Board proposes to take in order
27
to ensure that the Corporation or subsidiary complies with
28
the Investment Mandate.
29
(3) If the Ministers are satisfied that the Corporation or one of its
30
subsidiaries has failed to comply with the Investment Mandate, the
31
Ministers may (whether or not the Board has given the Ministers a
32
Part 6
Investment functions and powers
Division 3
Performance of investment functions etc.
Section 75
46
National Reconstruction Fund Corporation Bill 2022
No. , 2022
statement under subsection (2)), by written notice given to the
1
Board, direct the Board:
2
(a) to give the Ministers, within a period specified in the notice,
3
a written explanation; and
4
(b) to take action specified in the notice, within a period
5
specified in the notice, in order to ensure that the Corporation
6
or subsidiary complies with the Investment Mandate.
7
(4) The Board must comply with a direction under subsection (3).
8
(5) A failure to comply with:
9
(a) the Investment Mandate; or
10
(b) a direction under subsection (3);
11
does not affect the validity of any transaction.
12
(6) A direction under subsection (3) is not a legislative instrument.
13
75 Investment policies
14
(1) The Board must formulate written policies to be complied with by
15
Corporation bodies in relation to the following matters:
16
(a) in the case of the Corporation--the strategy of the
17
Corporation in relation to:
18
(i) the Corporation's investment functions; and
19
(ii) the Corporation's investment powers;
20
(b) in the case of the Corporation--benchmarks and standards
21
for assessing the performance of the investments of the
22
Corporation and of the Corporation itself;
23
(c) in the case of the Corporation--risk management for the
24
investments of the Corporation and for the Corporation itself;
25
(d) in the case of a designated subsidiary of the Corporation--
26
the strategy of the designated subsidiary in relation to:
27
(i) the Corporation's investment functions being performed
28
through the designated subsidiary; and
29
(ii) the designated subsidiary's investment powers;
30
(e) in the case of a designated subsidiary of the Corporation--
31
benchmarks and standards for assessing the performance of
32
Investment functions and powers
Part 6
Performance of investment functions etc.
Division 3
Section 76
No. , 2022
National Reconstruction Fund Corporation Bill 2022
47
the investments of the designated subsidiary and of the
1
designated subsidiary itself;
2
(f) in the case of designated subsidiary of the Corporation--risk
3
management for the investments of the designated subsidiary
4
and for the designated subsidiary itself;
5
(g) a matter specified in the rules.
6
Note:
For variation and revocation, see subsection 33(3) of the
Acts
7
Interpretation Act 1901
.
8
(2) The Board must ensure that the policies are consistent with the
9
Investment Mandate.
10
(3) The Board must cause copies of the policies to be published on the
11
Corporation's website.
12
(4) The Board must ensure that the first policies are published as soon
13
as practicable after the commencement of this section.
14
(5) The Board must conduct periodic reviews of the policies.
15
(6) If there is a change in the Investment Mandate, the Board must
16
review any affected policies.
17
(7) A Corporation body must comply with the policies.
18
(8) A failure to comply with a policy does not affect the validity of any
19
transaction.
20
(9) A policy formulated under subsection (1) is not a legislative
21
instrument.
22
76 Guarantees
23
(1) A guarantee purportedly given by the Corporation is void if, at the
24
time the Corporation purports to give the guarantee, it would
25
secure an amount that is more than the uncommitted balance of the
26
Account at that time, less any liabilities of the Corporation at that
27
time (whether actual or contingent) that are not in respect of
28
guarantees.
29
Part 6
Investment functions and powers
Division 3
Performance of investment functions etc.
Section 77
48
National Reconstruction Fund Corporation Bill 2022
No. , 2022
(2) To avoid doubt, the guarantee is wholly void regardless of whether
1
a part of the amount it would secure could be covered by the
2
amount worked out in subsection (1).
3
77 Derivatives
4
(1) The Corporation may acquire a derivative for the purpose of:
5
(a) protecting the value of an investment of the Corporation
6
(other than a derivative); or
7
(b) protecting the return on an investment of the Corporation
8
(other than a derivative); or
9
(c) achieving indirect exposure to one or more equity interests
10
for a purpose in connection with the Corporation's
11
investment functions; or
12
(d) achieving transactional efficiency for a purpose in connection
13
with the Corporation's investment functions;
14
but must not acquire a derivative for the purpose of:
15
(e) speculation; or
16
(f) leverage.
17
(2) The acquisition of a derivative under subsection (1) must be
18
consistent with the investment strategy embodied in a policy
19
formulated by the Board under subsection 75(1).
20
Miscellaneous
Part 7
Section 78
No. , 2022
National Reconstruction Fund Corporation Bill 2022
49
Part 7--Miscellaneous
1
2
78 Simplified outline of this Part
3
•
This Part deals with miscellaneous matters, including
4
responsibilities of subsidiaries, reporting obligations,
5
disclosure of information, reviewing the operation of this Act
6
and the power to make rules.
7
79 Incorporation or formation of subsidiaries
8
The Corporation must not incorporate or otherwise form a
9
subsidiary in a place other than Australia.
10
80 Responsibilities of designated subsidiaries
11
A designated subsidiary of the Corporation must:
12
(a) only provide financial accommodation to a constitutional
13
corporation if the financial accommodation could have been
14
provided by the Corporation; and
15
(b) only provide financial accommodation to an entity (other
16
than a constitutional corporation, a State or a Territory) or an
17
individual if the financial accommodation could have been
18
provided by the Corporation; and
19
(c) only acquire an equity interest if the interest could have been
20
acquired by the Corporation; and
21
(d) only provide financial accommodation to a State or Territory
22
if the financial accommodation could have been provided by
23
the Corporation; and
24
(e) take all reasonable steps to comply with the Investment
25
Mandate, to the extent to which the Investment Mandate is
26
capable of applying to the activities of the subsidiary; and
27
(f) comply with policies formulated by the Board under
28
section 75, to the extent to which the policies are capable of
29
applying to the activities of the subsidiary; and
30
Part 7
Miscellaneous
Section 81
50
National Reconstruction Fund Corporation Bill 2022
No. , 2022
(g) only acquire derivatives for a purpose for which the
1
Corporation may do so under section 77.
2
81 Corporation body may charge fees
3
(1) The Corporation may charge a fee in relation to anything done in
4
performing the Corporation's functions.
5
(2) A designated subsidiary of the Corporation may charge a fee in
6
relation to anything done in performing the Corporation's
7
investment functions.
8
(3) A fee must not be such as to amount to taxation.
9
82 Publication of investment reports
10
(1) The Corporation must, within one month after the end of each
11
quarter, publish a report on its website for the quarter that sets out
12
the following information:
13
(a) if, during the quarter, a Corporation body provided financial
14
accommodation to a constitutional corporation:
15
(i) the form of the financial accommodation; and
16
(ii) the value or amount of the financial accommodation;
17
and
18
(iii) the place or places where the main activities of the
19
constitutional corporation are carried out;
20
(b) if, during the quarter, a Corporation body provided financial
21
accommodation to an entity (other than a constitutional
22
corporation, a State or a Territory) or an individual:
23
(i) the form of the financial accommodation; and
24
(ii) the value or amount of the financial accommodation;
25
and
26
(iii) the place or places where the main activities of the
27
entity or individual are carried out;
28
(c) if, during the quarter, a Corporation body acquired one or
29
more equity interests in an entity:
30
(i) the type of the equity interests; and
31
(ii) the value of the equity interests; and
32
Miscellaneous
Part 7
Section 83
No. , 2022
National Reconstruction Fund Corporation Bill 2022
51
(iii) the place or places where the main activities of the
1
entity are carried out;
2
(d) if, during the quarter, a Corporation body provided financial
3
accommodation to a State or Territory:
4
(i) the form of the financial accommodation; and
5
(ii) the value or amount of the financial accommodation;
6
(e) such other information (if any) as is prescribed by the rules;
7
and
8
(f) any other information the Corporation considers appropriate.
9
(2) A
quarter
is a period of 3 months ending on:
10
(a) 31 March; and
11
(b) 30 June; and
12
(c) 30 September; and
13
(d) 31 December.
14
83 Publication of reports etc.
15
(1) The Ministers may publish, on the internet or in any other way the
16
Ministers consider appropriate:
17
(a) a report, a document or information given to the Minister
18
administering this Act by the accountable authority of the
19
Corporation; or
20
(b) a report, a document or information given to the Finance
21
Minister by the accountable authority of the Corporation;
22
under paragraph 19(1)(b) of the
Public Governance, Performance
23
and Accountability Act 2013
.
24
(2) The Ministers must omit from the published report, document or
25
information any information that the Board is satisfied in
26
accordance with subsection (3) is commercial-in-confidence.
27
(3) The Board may be satisfied that information is
28
commercial-in-confidence if a person demonstrates to the Board
29
that:
30
(a) release of the information would cause competitive detriment
31
to the person; and
32
(b) the information is not in the public domain; and
33
Part 7
Miscellaneous
Section 84
52
National Reconstruction Fund Corporation Bill 2022
No. , 2022
(c) the information is not required to be disclosed under another
1
law of the Commonwealth, a State or a Territory; and
2
(d) the information is not readily discoverable.
3
(4) The Ministers must omit from the published report, document or
4
information any national security information or sensitive financial
5
intelligence information.
6
84 Extra matters to be included in annual report
7
Matters relating to the Corporation
8
(1) The annual report prepared by the Board and given to the Minister
9
administering this Act under section 46 of the
Public Governance,
10
Performance and Accountability Act 2013
for a period must do the
11
following:
12
(a) set out details of the realisation of any investments of the
13
Corporation in the period;
14
(b) set out details of any procurement contracts to which the
15
Corporation is party that were in force at any time in the
16
period and that had a value of more than:
17
(i) $80,000; or
18
(ii) if a higher amount is prescribed by the rules--the higher
19
amount;
20
(c) set out details of any amounts paid to the Corporation under
21
subsection 55(2) in the period;
22
(d) set out details of any amounts paid by the Corporation under
23
section 58 in the period;
24
(e) set out such other information (if any) as is prescribed by the
25
rules.
26
Matters relating to designated subsidiaries of the Corporation
27
(2) The annual report prepared by the Board and given to the Minister
28
administering this Act under section 46 of the
Public Governance,
29
Performance and Accountability Act 2013
for a period must do the
30
following in relation to each designated subsidiary of the
31
Corporation:
32
Miscellaneous
Part 7
Section 85
No. , 2022
National Reconstruction Fund Corporation Bill 2022
53
(a) set out details of the realisation of any investments of the
1
designated subsidiary in the period;
2
(b) set out details of any procurement contracts to which the
3
designated subsidiary is party that were in force at any time
4
in the period that had a value of more than:
5
(i) $80,000; or
6
(ii) if a higher amount is prescribed by the rules--the higher
7
amount;
8
(c) set out such other information (if any) as is prescribed by the
9
rules.
10
85 Disclosure of official information
11
Information other than national security information or sensitive
12
financial intelligence information
13
(1) A Corporation official may disclose official information to an
14
agency, body or person specified in subsection (2) if:
15
(a) the disclosure will:
16
(i) facilitate the performance of the Corporation's
17
investment functions; or
18
(ii) enable or assist the agency, body or person to perform
19
or exercise any of the functions or powers of the
20
agency, body or person; and
21
(b) the information is not:
22
(i) national security information; or
23
(ii) sensitive financial intelligence information.
24
(2) For the purposes of subsection (1), the agencies, bodies and
25
persons are the following:
26
(a) a subsidiary of the Corporation;
27
(b) the Australian Bureau of Statistics;
28
(c) an APS employee in a Department;
29
(d) the government of a State or Territory;
30
(e) a prescribed agency, body or person.
31
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Section 85
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National Reconstruction Fund Corporation Bill 2022
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National security information and sensitive financial intelligence
1
information
2
(3) A Corporation official may disclose official information
to an
3
agency, body or person specified in subsection (4) if:
4
(a) the disclosure will:
5
(i) facilitate the performance of the Corporation's
6
investment functions; or
7
(ii) enable or assist the agency, body or person to perform
8
or exercise any of the functions or powers of the
9
agency, body or person; or
10
(iii) if the disclosure is to a staff member of a national
11
security agency--enable or assist the agency to perform
12
or exercise any of the functions or powers of the
13
national security agency; and
14
(b) the information is:
15
(i) national security information; or
16
(ii) sensitive financial intelligence information.
17
(4) For the purposes of subsection (3), the agencies, bodies and
18
persons are the following:
19
(a) a Minister of the Commonwealth who has responsibility for
20
national security;
21
(b) the Minister administering this Act;
22
(c) the Finance Minister;
23
(d) a person who:
24
(i) is a person employed, under section 13 or 20 of the
25
Members of Parliament (Staff) Act 1984
, as a member
26
of staff of a Minister mentioned in paragraph (a), (b) or
27
(c); and
28
(ii) holds an appropriate security clearance;
29
(e) the Secretary of a Department administered by a Minister
30
mentioned in paragraph (a), (b) or (c);
31
(f) a national security agency;
32
(g) a person who:
33
(i) is a staff member of a national security agency; and
34
(ii) holds an appropriate security clearance;
35
Miscellaneous
Part 7
Section 86
No. , 2022
National Reconstruction Fund Corporation Bill 2022
55
(h) a prescribed agency, body or person.
1
86 Nominated Minister
2
(1) The
nominated Minister
is the Minister administering this Act,
3
unless a determination under subsection (2) is in force.
4
(2) The Ministers may, by writing, determine that the
nominated
5
Minister
is the Finance Minister.
6
(3) A determination under subsection (2) is not a legislative
7
instrument.
8
(4) The nominated Minister may give the other of the Ministers any
9
information or documents obtained by the nominated Minister
10
under this Act.
11
87 Delegation by nominated Minister
12
(1) The nominated Minister may, in writing, delegate to the Secretary
13
of the Department administered by the nominated Minister the
14
nominated Minister's function under subsection 55(1).
15
(2) In exercising any powers or performing any functions under the
16
delegation, the delegate must comply with any directions of the
17
nominated Minister.
18
88 Delegation by Corporation
19
(1) The Corporation may, in writing under its seal, delegate all or any
20
of its powers or functions under this Act to the CEO.
21
(2) In exercising any powers or performing any functions under the
22
delegation, the delegate must comply with any directions of the
23
Corporation.
24
89 Delegation by Board
25
(1) The Board may, in writing, delegate to a Board member or the
26
CEO any of its powers or functions under this Act.
27
Part 7
Miscellaneous
Section 90
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National Reconstruction Fund Corporation Bill 2022
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(2) In exercising any powers or performing any functions under the
1
delegation, the delegate must comply with any directions of the
2
Board.
3
90 Delegation and subdelegation by CEO
4
(1) The CEO may, in writing, delegate to a member of the staff
5
referred to in section 46 any of the CEO's powers or functions
6
under this Act.
7
(2) If the Corporation or the Board delegates a power or function
8
under subsection 88(1) or 89(1) to the CEO, the CEO may, in
9
writing, subdelegate the power or function to a member of the staff
10
referred to in section 46.
11
(3) In exercising any powers or performing any functions under the
12
delegation or subdelegation, the delegate or subdelegate must
13
comply with any directions of the CEO.
14
(4) Sections 34AA, 34AB and 34A of the
Acts Interpretation Act 1901
15
apply in relation to a subdelegation in a corresponding way to the
16
way in which they apply in relation to a delegation.
17
91 Periodic reviews of the operation of this Act
18
(1) The nominated Minister must cause independent reviews to be
19
conducted of the operation of this Act.
20
Public consultation
21
(2) A review under subsection (1) must make provision for public
22
consultation.
23
Report
24
(3) The person or persons who conduct the review must give the
25
nominated Minister a written report of the review.
26
(4) The nominated Minister must cause copies of a report under
27
subsection (3) to be tabled in each House of the Parliament within
28
15 sitting days of that House after the review is completed.
29
Miscellaneous
Part 7
Section 92
No. , 2022
National Reconstruction Fund Corporation Bill 2022
57
First review
1
(5) The first review under subsection (1) must be completed within 5
2
years after the commencement of this section.
3
Subsequent reviews
4
(6) Each subsequent review under subsection (1) must be completed
5
within 5 years after the completion of the previous review.
6
When review is completed
7
(7) For the purposes of subsections (4), (5) and (6), a review is
8
completed when the report of the review is given to the nominated
9
Minister under subsection (3).
10
92 Rules
11
(1) The Ministers may make rules prescribing matters:
12
(a) required or permitted by this Act to be prescribed; or
13
(b) necessary or convenient to be prescribed for carrying out or
14
giving effect to this Act.
15
(2) To avoid doubt, the rules may not do the following:
16
(a) create an offence or civil penalty;
17
(b) provide powers of:
18
(i) arrest or detention; or
19
(ii) entry, search or seizure;
20
(c) impose a tax;
21
(d) set an amount to be appropriated from the Consolidated
22
Revenue Fund under an appropriation in this Act;
23
(e) directly amend the text of this Act.
24