Commonwealth Numbered Regulations

COMMONWEALTH AUTHORITIES AND COMPANIES AMENDMENT REGULATIONS 2008 (NO. 1) (SLI NO 69 OF 2008) - SCHEDULE 2

(regulation 4)

[1]           After regulation 6

insert

6A            Audit committees for Commonwealth authorities (Act s 32)

         (1)   For subsection 32 (2) of the Act, the audit committee of a Commonwealth authority is to be constituted as follows:

                (a)    the chair of the committee must be a person other than:

                          (i)    the chair of the authority; or

                         (ii)    an executive director of the authority;

               (b)    the committee:

                          (i)    must be made up of at least 3 persons; and

                         (ii)    may include only 1 person who is an executive director of the authority; and

                         (iii)    must not include senior managers or employees of the authority other than the executive director mentioned in subparagraph (ii).

         (2)   To avoid doubt, a committee may include persons who are not directors of the authority.

Note    The chair of the committee may, for example, be a non‑executive director (other than the chair of the authority) or an external appointee of the authority.

         (3)   The quorum for meetings of the committee is:

                (a)    2 persons; or

               (b)    if the majority of the committee is greater than 2 persons -- that number of persons.

6B            Audit committees for wholly‑owned Commonwealth companies (Act s 44)

         (1)   For subsection 44 (2) of the Act, the audit committee of a wholly‑owned Commonwealth company is to be constituted as follows:

                (a)    the chair of the committee must be a person other than:

                          (i)    the chair of the company; or

                         (ii)    an executive director of the company;

               (b)    the committee:

                          (i)    must be made up of at least 3 persons; and

                         (ii)    may include only 1 person who is an executive director of the company; and

                         (iii)    must not include senior managers or employees of the company other than the executive director mentioned in subparagraph (ii).

         (2)   To avoid doubt, a committee may include persons who are not directors of the company.

Note    The chair of the committee may, for example, be a non‑executive director (other than the chair of the company) or an external appointee of the company.

         (3)   The quorum for meetings of the committee is:

                (a)    2 persons; or

               (b)    if the majority of the committee is greater than 2 persons -- that number of persons.