Commonwealth Numbered Acts

DAIRY PRODUCE ACT 1986 No. 54 of 1986 - SECT 12

12. (1) The Corporation shall ensure that Asia Dairy Industries (H.K.)
Limited, a company incorporated in Hong Kong, undertakes only the following
activities:

   (a)  buying dairy produce and dairy livestock, whether produced in
        Australia or elsewhere, and selling them outside Australia, with the
        objective of maintaining and expanding existing markets, or securing
        new markets, outside Australia, for Australian dairy produce and
        Australian dairy livestock;

   (b)  providing services related to the production, distribution, sale or
        promotion of dairy produce or the provision of dairy livestock;

   (c)  an activity related to an activity referred to in paragraph (a) or
        (b);

   (d)  any other activity in which the Corporation may engage.

(2) The Corporation shall take steps to ensure that Asia Dairy Industries
(H.K.) Limited (in this sub-section referred to as "the company")-

   (a)  complies with the directions of the Minister and of the Corporation;

   (b)  does not, except with the approval, in writing, of the Minister-

        (i)    form, or participate with other persons in the formation of, a
               company;

        (ii)   acquire, hold or dispose of shares or stock in the capital of,
               or shares or other securities of, a company; or

        (iii)  enter into a partnership, or arrange for the sharing of
               profits, with a company;

   (c)  prepares and submits to the Corporation corporate plans and annual
        operational plans relating to the activities of the company, being
        plans of the kind that the Corporation is, under this Act, required to
        submit to the Minister;

   (d)  does not raise money (whether by borrowing or otherwise), except in
        the course of obtaining normal commercial credit, otherwise than in
        accordance with guidelines approved by the Minister;

   (e)  prepares and submits to the Corporation annual reports in the form,
        and at the times, specified by the Corporation;

   (f)  permits the Corporation auditor to satisfy himself or herself that
        there has been compliance with the requirements of sub-section (1)
        and, for that purpose, allows the Corporation auditor full and free
        access to all documents and other information concerning the affairs
        of the company held by, or under the control of, the company; and

   (g)  does not, without the approval of the Minister, employ staff on terms
        more favourable than those applicable to the Managing Director of the
        Corporation.

(3) An approval given by the Minister under paragraph (2) (b) may be subject
to such conditions as the Minister thinks fit.

(4) Except in the case of a disposal of the kind referred to in sub-paragraph
(2) (b) (ii), the Minister shall not give an approval referred to in paragraph
(2) (b) if the company to which the approval relates is carrying on a business
other than a relevant business or it is proposed that the company carry on a
business other than a relevant business.

(5) An agreement or arrangement between Asia Dairy Industries (H.K.) Limited
and a company shall include a term empowering Asia Dairy Industries (H.K.)
limited to terminate the agreement or arrangement if the company ceases to
carry on relevant business or commences to carry on a business that is not a
relevant business.

(6) Where-

   (a)  Asia Dairy Industries (H.K.) Limited has an interest in, or is a party
        to an agreement or arrangement with, a company; and

   (b)  the company does not carry on a prescribed business or is carrying on
        a business that is not a relevant business, the Minister may give to
        the Corporation or to Asia Dairy Industries (H.K.) Limited such
        directions, in writing, as the Minister thinks appropriate with
        respect to-

   (c)  the disposal of the interest of Asia Dairy Industries (H.K.) Limited
        in the company; or

   (d)  the termination of the agreement or arrangement between the
        Corporation and the company, as the case may be.

(7) This section does not authorise a company to carry on a relevant business
otherwise than in accordance with the relevant law.

(8) If the name of Asia Dairy Industries (H.K.) Limited, a company
incorporated in Hong Kong, is changed, this Act continues to apply in relation
to the company as it would have continued to apply if the name had not been
changed.

(9) Sub-sections (1) to (8), inclusive, do not apply if the Corporation is not
in a position to control the operations of Asia Dairy Industries (H.K.)
Limited.
(10) In this section, "relevant business" means a business relating to any
matter that is within the functions or duties of Asia Dairy Industries (H.K.)
Limited or with respect to which that company may exercise powers.