Commonwealth Banks Act 1959
No. 5, 1959
Compilation No. 10
Compilation date: 24 June 2023
Includes amendments up to: Act No. 28, 2023
Registered: 12 July 2023
About this compilation
This compilation
This is a compilation of the Commonwealth Banks Act 1959 that shows the text of the law as amended and in force on 24 June 2023 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part I—Preliminary
1 Short title
2 Commencement
4 Interpretation
5 Application to Territories
6 This Act subject to Banking Act
Part IV—The Commonwealth Bank
Division 1—Preliminary steps before conversion of Commonwealth Bank into a public company
27A Share capital of Commonwealth Bank
27B Shares to be paid up and issued
27C Commonwealth Bank to apply to be registered as company etc.
Division 2—Conversion of Commonwealth Bank into a public company
27D Commonwealth Bank taken to be registered under Companies Act
27E Memorandum and articles of Commonwealth Bank
27F Membership of the Commonwealth Bank
27G Name of the Commonwealth Bank
27H Commonwealth Bank is not a Commonwealth authority or Commonwealth company etc.
27J Operation of section 25B of Acts Interpretation Act
Division 4—Miscellaneous
28 General functions of Commonwealth Bank
Part VII—The Commonwealth Development Bank
74A Preliminary steps to conversion of Development Bank into a company
74B Conversion of Development Bank into a company
74C Development Bank is not a Commonwealth authority or Commonwealth company etc.
Part VIII—The Commonwealth Bank Officers Superannuation Corporation
108A Preliminary steps to conversion of Corporation into a company
108B Conversion of Corporation into a company
108C Corporation is not a Commonwealth authority or Commonwealth company etc.
110 Superannuation fund
Part IX—Miscellaneous
117 Guarantee by the…
Overview
The Commonwealth Banks Act 1959 was enacted by the Parliament of Australia to provide for the constitution and operations of the Commonwealth banks, specifically the Commonwealth Bank of Australia, the Commonwealth Development Bank, and the Commonwealth Bank Officers Superannuation Corporation. The Act was introduced to address the need for a comprehensive legal framework governing the establishment, management, and operations of these banks, ensuring they could function efficiently within the national financial system. The Act has undergone several amendments over the years, most notably through the Commonwealth Banks Restructuring Act 1990, which significantly reformed the structure and operations of the Commonwealth Bank and the Commonwealth Development Bank.
Scope and Application
The Commonwealth Banks Act 1959 is an Australian federal Act that governs the operations of the Commonwealth Bank, the Commonwealth Development Bank, and the Commonwealth Bank Officers Superannuation Corporation. The Act applies to the Commonwealth Bank of Australia, the Commonwealth Development Bank of Australia, and the Commonwealth Bank Officers Superannuation Corporation. It includes provisions for the conversion of these entities into public companies, their membership, and their functions. The Act extends to all Australian territories. It is subject to the provisions of the Banking Act 1959 and relevant regulations. The Act has been amended several times, with significant changes made through the Commonwealth Banks Restructuring Act 1990 and subsequent amendments. These amendments include restructuring provisions, the conversion of these banks into public companies, and the establishment of new corporate structures. The Act also includes provisions for the Commonwealth to guarantee certain payments related to these banks and their superannuation funds. The Act allows for the making of regulations to prescribe matters necessary for carrying out or giving effect to the Act, including penalties for offences against the regulations.
Key Provisions
- The Commonwealth Banks Act 1959 outlines provisions for the conversion and operations of the Commonwealth Bank, the Commonwealth Development Bank, and the Commonwealth Bank Officers Superannuation Corporation. Under Division 1 of Part IV, the Commonwealth Bank must establish a share capital, pay up and issue shares, and apply for registration as a company before its conversion. Once converted, the Commonwealth Bank is registered under the Companies Act 1981 as a public company limited by shares. The Commonwealth becomes a member of the Commonwealth Bank at the conversion time with the same rights, privileges, and obligations as other members. The Commonwealth Bank is not considered a Commonwealth authority or agency. Under Part VII, the Commonwealth Development Bank must also apply for registration as a company and is taken to be registered under the Corporations Law. Similarly, under Part VIII, the Commonwealth Bank Officers Superannuation Corporation must apply for registration as a company and is taken to be registered under the Corporations Law. The Commonwealth is guaranteed to pay certain amounts due to the Commonwealth Bank, the Commonwealth Development Bank, and the superannuation fund. Offences against regulations may incur penalties of up to $100.
- Area of Law
- Corporate Law & Governance
- Commercial Law
- Finance & Banking Law
- Instrument
- Act
- Concepts
- Definitions & Interpretation
- Commencement Provisions
- Regulatory Standards
- Enforcement Powers
- Guarantees
- Licensing & Registration
