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WATER AND SEWERAGE CORPORATION AMENDMENT (CROWN INVOLVEMENT FACILITATION) BILL 2018 BILL 24 OF 2018

                                     FACT SHEET

                   Water and Sewerage Corporation Amendment
                    (Crown Involvement Facilitation) Bill 2018

   The Water and Sewerage Corporation Amendment (Crown Involvement Facilitation) Bill
    2018 amends the Water and Sewerage Corporation Act 2012 (the Principal Act) to facilitate
    certain resolutions by the members of the Tasmanian Water & Sewerage Corporation
    Pty Limited (the corporation). These resolutions implement the measures in the
    memorandum of understanding signed on 1 May 2018 by the Crown, the corporation
    and the Chief Owners’ Representative of the council shareholders.
   The proposed resolutions are to issue shares in the corporation to the Crown and to
    make changes to the corporation’s constitution and the shareholders’ letter of expectation
    to implement or enable the implementation of the memorandum of understanding.
   Section 11(2) of the Principal Act requires, amongst other matters, that the constitution
    of the corporation contains a prohibition on members exercising their powers in a manner
    that is inconsistent with the requirements of the Principal Act. The constitution of the
    corporation includes a rule to this effect (Rule 2.3(b)).
   Section 10(1) of the Principal Act provides that only councils may own shares in the
    corporation.
   The Bill includes a new section 43A in the Principal Act that ensures the validity of
    resolutions by members that contemplate that the Crown will own shares in the
    corporation, notwithstanding any other provision of the Principal Act, the constitution of
    the corporation or other law.
   The resolutions are to be made after the commencement of the Act and before the
    introduction of the Water and Sewerage Legislation (Corporate Governance and Pricing)
    Amendment Bill 2018.
   The Corporate Governance and Pricing Bill, amongst other matters, allows the Crown to
    own shares in the corporation.
   The Bill provides that the resolutions are subject to a requirement that ownership and
    governance changes in the corporation occur after the commencement of the Corporate
    Governance and Pricing Act. The relevant ownership and governance changes include the
    issue of shares in the corporation to the Crown, amendments to the corporation’s
    constitution and amendments to the shareholders’ letter of expectation to implement or
    enable the implementation of the memorandum of understanding.




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