Universities Legislation (Investment) Amendment Act 1989 (NSW)

U N IV E R SITIE S

LEG ISLATIO N

(IN V E STM EN T)

A M E N D M E N T

ACT 1989 No. 179

NEW SOUTH WALES

TABLE OF PROVISIONS

1. Short title

2. Commencement

3. Amendment of Universities legislation

4. Validation

SCHEDULE 1 - AMENDMENTS

U N IV E R SITIE S

LEG ISLA TIO N

(IN V E STM EN T)

A M E N D M E N T

ACT 1989 No. 179

NEW SOUTH WALES

Act No. 179, 1989

An Act to amend the Acts establishing Universities in respect of the investment of the funds of Universities. [Assented to 14 December 1989]

Universities Le^station (divestment) Amendment 1989

The Legislature of New South Wales enacts:

Short title

1. This Act may be cited as the Universities Legislation (Investment)

Amendment Act 1989.

Commencement

2. This Act commences on the date of assent.

Amendment of Universities legislation

3. Each Act specified in Schedule 1 is amended as set out in that

Schedule.

Validation

Anything done by a body referred to in a provision of Schedule 1 before the commencement of that provision which would have been validly done if it had been done after that commencement is validated with effect from the date it was done.

SCHEDULE 1 - AMENDMENTS

(Sec. 3)

Charles Sturt University Act 1989 No. 76:

Omit Schedule 2, insert instead:

SCHEDULE 2 - INVESTMENT

(Sec. 19)

Definition of "funds"

For the purposes of this Schedule, the funds of the University include funds under the control of the University and real property, securities or other property comprising an investment

Investment powers

(1) The Board has, in respect of the funds of the University, the investment powers conferred on the Board by Part 3 of the Public Authorities (Financial Arrangements) Act 1987.

Act No. 179

Universities Legislation (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

(2)	If Part 3 of that Act does not confer investment

powers on the Board in respect of any such funds, the

Board may invest those funds:

(a)	in any manner authorised for the investment of trust funds; or
(b)	in any other manner approved by the Minister with the concurrence of the Treasurer.

Investment common funds

3. (1) The Board may establish one or more investment common funds.

(2) The Board may from time to time, without liability for breach of trust, bring into or withdraw from any such investment common fund the whole or any part of trust funds or other funds of the University.

(3) Subject to subclause (4), the Board must periodically distribute the income of each investment common fund among the funds participating in the common fund, having regard to the extent of the participation of each fund in the common fund during the relevant accounting period.

(4) The Board may, if it considers it expedient to do so, from time to time add some portion of the income of an investment common fund to the capital of the common fund or use some portion of the income to establish or augment a fund or funds as a provision against capital depreciation or reduction of income.

(5) If an investment is brought into an investment common fund:

(a)	the University is to be taken to hold that investment on behalf of and for the benefit of the common fund instead of the participating trust fund or other fund; and
(b)	that participating fund is to be taken to have contributed to the common fund an amount of money equivalent to the value attributed to the

Universities Le^slation ( Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

investment by the Board at the time it is brought

into the common fund; and

(c)	on the withdrawal of that participating fund from the common fund, the amount of money to be withdrawn is to be the amount equivalent to the value attributed by the Board to the equity in the common fund of that participating fund at the time of withdrawal.

(6) The inclusion in an investment common fund of trust funds does not affect any trust to which those trust funds (or money attributed to them) are subject

(7) On the withdrawal of trust funds from an investment common fund, the funds (or money attributed to them) continue to be subject to the trust

Terms o f trust to prevail

4. In respect of the trust funds of the University

(a) the investment powers of the Board; and

(b)	the power of the Board to bring the trust funds into an investment common fund,

are subject to any express direction in or express condition

of the trust

Macquarie University Act 1989 No. 126:

Omit Schedule 2, insert instead:

SCHEDULE 2 - INVESTMENT

(Sec. 16)

Definition of "funds"

1. For the purposes of this Schedule, the funds of the

University include funds under the control of the University and real property, securities or other property comprising an investment

Act No. 179

Universities Le^slation (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

Investment powers

(1) The Council has, in respect of the funds of the University, the investment powers conferred on the Council by Part 3 of the Public Authorities (Financial Arrangements) Act 1987.

(2)	If Part 3 of that Act does not confer investment

powers on the Council in respect of any such funds, the

Council may invest those funds:

(a)	in any manner authorised for the investment of trust funds; or
(b)	in any other manner approved by the Minister with the concurrence of the Treasurer.

Investment common funds

3. (1) The Council may establish one or more investment common funds.

(2) The Council may from time to time, without liability for breach of trust, bring into or withdraw from any such investment common fund the whole or any part of trust funds or other funds of the University.

(3) Subject to subclause (4), the Council must periodically distribute the income of each investment common fund among the funds participating in the common fund, having regard to the extent of the participation of each fund in the common fund during the relevant accounting period.

(4) The Council may, if it considers it expedient to do so, from time to time add some portion of the income of an investment common fund to the capital of the common fund or use some portion of the income to establish or augment a fund or funds as a provision against capital depreciation or reduction of income.

(5) If an investment is brought into an investment common fund:

Universities Leffstation (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

(a)	the University is to be taken to hold that investment on behalf of and for the benefit of the common fund instead of the participating trust fund or other fund; and
(b)	that participating fund is to be taken to have contributed to the common fund an amount of money equivalent to the value attributed to the investment by the Council at the time it is brought into the common fund; and
(c)	on the withdrawal of that participating fund from the common fund, the amount of money to be withdrawn is to be the amount equivalent to the value attributed by the Council to the equity in the common fund of that participating fund at the time of withdrawal.

(6) The inclusion in an investment common fund of trust funds does not affect any trust to which those trust funds (or money attributed to them) are subject

(7) On the withdrawal of trust funds from an investment common fund, the funds (or money attributed to them) continue to be subject to the trust

Terms of trust to prevail

4. In respect of the trust funds of the University:

(a) the investment powers of the Council; and

(b)	the power of the Council to bring the trust funds into an investment common fund,

are subject to any express direction in or express condition

of the trust

Act No. 179

Universities Le^slation (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

University of Newcastle Act 1989 No. 68:

Omit Schedule 2, insert instead:

SCHEDULE 2 - INVESTMENT

(Sec. 16)

Definition of "funds"

For the purposes of this Schedule, the funds of the University include funds under the control of the University and real property, securities or other property comprising an investment

Investment powers

(1) The Council has, in respect of the funds of the University, the investment powers conferred on the Council by Part 3 of the Public Authorities (Financial Arrangements) Act 1987.

(2) If Part 3 of that Act does not confer investment powers on the Council in respect of any such funds, the Council may invest those funds:

(a)	in any manner authorised for the investment of trust funds; or
(b)	in any other manner approved by the Minister vvath the concurrence of the Treasurer.

Investment common funds

3. (1) The Council may establish one or more investment common funds.

(3) Subject to subclause (4), the Council must periodically distribute the income of each investment common fund among the funds participating in the common fund, having regard to the extent of the

Universities Le^station (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

participation of each fund in the common fund during the

relevant accounting period.

(5) If an investment is brought into an investment common fund:

(a)	the University is to be taken to hold that investment on behalf of and for the benefit of the common fund instead of the participating trust fund or other fund; and
(b)	that participating fund is to be taken to have contributed to the common fund an amount of money equivalent to the value attributed to the investment by the Council at the time it is brought into the common fund; and
(c)	on the withdrawal of that participating fund from the common fund, the amount of money to be withdrawn is to be the amount equivalent to the value attributed by the Council to the equity in the common fund of that participating fund at the time of withdrawal.

(6) The inclusion in an investment common fund of trust funds does not affect any trust to which those trust funds (or money attributed to them) are subject

(7) On the withdrawal of trust funds from an investment common fund, the funds (or money attributed to them) continue to be subject to the trust

Act No. 179

Universities Le^slation (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

Terms of trust to prevail

4. In respect of the trust funds of the University:

(a) the investment powers of the Council; and

(b)	the power of the Council to bring the trust funds into an investment common fund,

are subject to any express direction in or express condition

of the trust

University of New England Act 1989 No. 67:

Omit Schedule 2, insert instead:

SCHEDULE 2 - INVESTMENT

(Sec. 19)

Definition of "funds"

For the purposes of this Schedule, the funds of the University include funds under the control of the University and real property, securities or other property comprising an investment

Investment powers

(1) The Board has, in respect of the funds of the University, the investment powers conferred on the Board by Part 3 of the Public Authorities (Financial Arrangements) Act 1987.

(2)	If Part 3 of that Act does not confer investment

powers on the Board in respect of any such funds, the

Board may invest those funds:

(a)	in any manner authorised for the investment of trust funds; or
(b)	in any other manner approved by the Minister with the concurrence of the Treasurer.

Investment common funds

(1) The Board may

establish one or more

investment common funds.

Universities Le^station (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

(5) If an investment is brought into an investment common fund:

(a)	the University is to be taken to hold that investment on behalf of and for the benefit of the common fund instead of the participating trust fund or other fund; and
(b)	that participating fund is to be taken to have contributed to the common fund an amount of money equivalent to the value attributed to the investment by the Board at the time it is brought into the common fund; and
(c)	on the withdrawal of that participating fund from the common fund, the amount of money to be withdrawn is to be the amount equivalent to the value attributed by the Board to the equity in the common fund of that participating fund at the time of withdrawal.

(6) The inclusion in an investment common fund of trust funds does not affect any trust to which those trust funds (or money attributed to them) are subject

Act No. 179

Universities Le^slation (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

(7)	On the withdrawal of trust funds from an investment

common fund, the funds (or money attributed to them)

continue to be subject to the trust

Terms of trust to prevail

4. In respect of the trust funds of the University:

(a) the investment powers of the Board; and

(b)	the power of the Board to bring the trust funds into an investment common fund,

are subject to any express direction in or express condition

of the trust

University of New South Wales Act 1989 No. 125:

Omit Schedule 2, insert instead:

SCHEDULE 2 - INVESTMENT

(Sec. 15)

Definition of "funds"

For the purposes of this Schedule, the funds of the University include funds under the control of the University and real property, securities or other property comprising an investment

Investment powers

(1) The Council has, in respect of the funds of the University, the investment powers conferred on the Council by Part 3 of the Public Authorities (Financial Arrangements) Act 1987.

(2) If Part 3 of that Act does not confer investment powers on the Council in respect of any such funds, the Council may invest those funds:

(a)	in any manner authorised for the investment of trust funds; or
(b)	in any other manner approved by the Minister with the concurrence of the Treasurer.

Universities Le^slation (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

Investment common funds

3. (1) The Council may establish one or more

investment common funds.

(3) Subject to subclause (4), the Council must periodically distribute the income of each investment common fond among the funds participating in the common fund, having regard to the extent of the participation of each fund in the common fund during the relevant accounting period.

(4) The Council may, if it considers it expedient to do so, from time to time add some portion of the income of an investment common fond to the capital of the common fund or use some portion of the income to establish or augment a fund or funds as a provision against capital depreciation or reduction of income.

(5) If an investment is brought into an investment common fond:

(a)	the University is to be taken to hold that investment on behalf of and for the benefit of the common fond instead of the participating trust fund or other fund; and
(b)	that participating fond is to be taken to have contributed to the common fund an amount of money equivalent to the value attributed to the investment by the Council at the time it is brought into the common fund; and
(c)	on the withdrawal of that participating fond from the common fund, the amount of money to be withdrawn is to be the amount equivalent to the value attributed by the Council to the equity in the common fund of that participating fund at the time of withdrawal.

Act No, 179

Universities Le^slation (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

(6) The inclusion in an investment common fund of trust funds does not affect any trust to which those trust funds (or money attributed to them) are subject.

(7) On the withdrawal of trust funds from an investment common fund, the funds (or money attributed to them) continue to be subject to the trust

Terms of trust to prevail

4. In respect of the trust funds of the University:

(a) the investment powers of the Council; and

(b)	the power of the Council to bring the trust funds into an investment common fund,

are subject to any express direction in or express condition

of the trust

University of Sydney Act 1989 No. 124:

Omit Schedule 2, insert instead;

SCHEDULE 2 - INVESTMENT

(Sec. 16)

Definition of "funds"

For the purposes of this Schedule, the funds of the University include funds under the control of the University and real property, securities or other property comprising an investment

Investment powers

(1) The Senate has, in respect of the funds of the University, the investment powers conferred on the Senate by Part 3 of the Public Authorities (Financial Arrangements) Act 1987.

(2)	If Part 3 of that Act does not confer investment

powers on the Senate in respect of any such funds, the

Senate may invest those funds;

Universities Leff station (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

(a)	in any manner authorised for the investment of trust funds; or
(b)	in any other manner approved by the Minister with the concurrence of the Treasurer.

Investment common funds

3. (1) The Senate may establish one or more

investment common funds.

(2) The Senate may from time to time, without liability for breach of trust, bring into or withdraw from any such investment common fund the whole or any part of trust funds or other funds of the University.

(3) Subject to subclause (4), the Senate must periodically distribute the income of each investment common fund among the funds participating in the common fund, having regard to the extent of the participation of each fund in the common fund during the relevant accounting period.

(4) The Senate may, if it considers it expedient to do so, from time to time add some portion of the income of an investment common fund to the capital of the common fund or use some portion of the income to establish or augment a fund or funds as a provision against capital depreciation or reduction of income.

(5) If an investment is brought into an investment common fund:

(a)	the University is to be taken to hold that investment on behalf of and for the benefit of the common fund instead of the participating trust fund or other fund; and
(b)	that participating fund is to be taken to have contributed to the common fund an amount of money equivalent to the value attributed to the investment by the Senate at the time it is brought into the common fund; and
(c)	on the withdrawal of that participating fund from the common fund, the amount of money to be

Act No. 179

Universities Le^slation (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

withdrawn is to be the amount equivalent to the value attributed by the Senate to the equity in the common fund of that participating fund at the time of withdrawal

(6) The inclusion in an investment common fund of trust funds does not affect any trust to which those trust funds (or money attributed to them) are subject

(7) On the withdrawal of trust funds from an investment common fund, the funds (or money attributed to them) continue to be subject to the trust

Terms of trust to prevail

4. In respect of the trust funds of the University;

(a) the investment powers of the Senate; and

(b)	the power of the Senate to bring the trust funds into an investment common fund,

are subject to any express direction in or express condition

of the trust

University of Technology, Sydney, Act 1989 No. 69:

Omit Schedule 2, insert instead:

SCHEDULE 2 - INVESTMENT

(Sec. 16)

Definition of "funds"

For the purposes of this Schedule, the funds of the University include funds under the control of the University and real property, securities or other property comprising an investment

Investment powers

(1) The Council has, in respect of the funds of the University, the investment powers conferred on the Council by Part 3 of the Public Authorities (Financial Arrangements) Act 1987.

Universities Le^slation (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

(2)	If Part 3 of that Act does not confer investment

powers on the Council in respect of any such funds, the

Council may invest those funds:

(a)	in any manner authorised for the investment of trust funds; or
(b)	in any other manner approved by the Minister with the concurrence of the Treasurer.

Investment common funds

3. (1) The Council may establish one or more

investment common funds.

(2) The Council may from time to time, without liability for l5reach of trust, bring into or withdraw from any such investment common fund the whole or any part of trust funds or other funds of the University.

(5) If an investment is brought into an investment common fund:

(a)	the University is to be taken to hold that investment on behalf of and for the benefit of the common fund instead of the participating trust fund or other fund; and
(b)	that participating fund is to be taken to have contributed to the common fund an amount of money equivalent to the value attributed to the

Act No. 179

Universities Le^slation (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

investment by the Council at the time it is brought

into the common fund; and

(c)	on the withdrawal of that participating fund from the common fund, the amount of money to be withdrawn is to be the amount equivalent to the value attributed by the Council to the equity in the common fund of that participating fund at the time of withdrawal.

(6) The inclusion in an investment common fund of trust funds does not affect any trust to which those trust funds (or money attributed to them) are subject

(7) On the withdrawal of trust funds from an investment common fund, the funds (or money attributed to them) continue to be subject to the trust

Terms of trust to prevail

4. In respect of the trust funds of the University:

(a) the investment jxDwers of the Council; and

(b)	the power of the Council to bring the trust funds into an investment common fund,

are subject to any express direction in or express condition

of the trust

University of Western Sydney Act 1988 No. 90:

(1) Section 11 (Powers of Board):

(a)	From section 11 (1) (f), omit "in any manner provided by Part 4".

(b) After section 11 (5), insert

(6) Schedule 1A has effect in relation to the investment of funds by the Board.

Universities Le§slation (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

(2) Part 4 (Powers of investment):

Omit the Part

(3) Schedule lA

After Schedule 1, insert

SCHEDULE lA - INVESTMENT

(Sec. 11)

Definition of "funds"

For the purposes of this Schedule, the funds of the University include funds under the control of the University and real property, securities or other property comprising an investment

Investment powers

(1) The Board has, in respect of the funds of the University, the investment powers conferred on the Board by Part 3 of the Public Authorities (Financial Arangements) Act 1987.

(2) If Part 3 of that Act does not confer investment powers on the Board in respect of any such funds, the Board may invest those funds:

(a)	in any manner authorised for the investment of trust funds; or
(b)	in any other manner approved by the Minister with the concurrence of the Treasurer.

Investment common funds

(1) The Board may

establish one or more

investment common funds.

Act No, 179

Universities Le^slation (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

(5) If an investment is brought into an investment common fund:

(a)	the University is to be taken to hold that investment on behalf of and for the benefit of the common fund instead of the participating trust fund or other fund; and
(b)	that participating fund is to be taken to have contributed to the common fund an amount of money equivalent to the value attributed to the investment by the Board at the time it is brought into the common fund; and
(c)	on the withdrawal of that participating fund from the common fund, the amount of money to be withdrawn is to be the amount equivalent to the value attributed by the Board to the equity in the common fund of that participating fund at the time of withdrawal.

(6) The inclusion in an investment common fund of trust funds does not affect any trust to which those trust funds (or money attributed to them) are subject

(7) On the withdrawal of trust funds from an investment common fund, the funds (or money attributed to them) continue to be subject to the trust

Universities Le^slation ( Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

Terms of trust to prevail

4. In respect of the trust funds of the University:

(a) the investment powers of the Board; and

(b)	the power of the Board to bring the trust funds into an investment common fund,

are subject to any express direction in or express condition

of the trust

University o f Wollongong Act 1989 No. 127:

Omit Schedule 2, insert instead:

SCHEDULE 2 - INVESTMENT

(Sec. 16)

Definition o f "funds"

For the purposes of this Schedule, the funds of the University include funds under the control of the University and real property, securities or other property comprising an investment

Investment powers

(1) The Council has, in respect of the funds of the University, the investment powers conferred on the Council by Part 3 of the Public Authorities (Financial Arrangements) Act 1987.

(2) If Part 3 of that Act does not confer investment powers on the Council in respect of any such funds, the Council may invest those funds:

(a)	in any manner authorised for the investment of trust funds; or
(b)	in any other manner approved by the Minister with the concurrence of the Treasurer.

Investment common funds

3. (1) The Council may establish one or more investment common funds.

Act No. 179

Universities Le^slation (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

(5) If an investment is brought into an investment common fund:

(a)	the University is to be taken to hold that investment on behalf of and for the benefit of the common fund instead of the participating trust fund or other fund; and
(b)	that participating fund is to be taken to have contributed to the common fund an amount of money equivalent to the value attributed to the investment by the Council at the time it is brought into the common fund; and
(c)	on the withdrawal of that participating fund from the common fund, the amount of money to be withdrawn is to be the amount equivalent to the value attributed by the Council to the equity in the common fund of that participating fund at the time of withdrawal

(6) The inclusion in an investment common fund of trust funds does not affect any trust to which those trust funds (or money attributed to them) are subject

Universities Le^slation (Investment) Amendment 1989

SCHEDULE 1 - AMENDMENTS - continued

(7)	On the withdrawal of trust funds from an investment

common fund, the funds (or money attributed to them)

continue to be subject to the trust

Terms of trust to prevail

4. In respect of the trust funds of the University: (a) the investment powers of the Council; and

(b)	the power of the Council to bring the trust funds into an investment common fund,

are subject to any express direction in or express condition

of the trust

[Minister's second reading speech made in -

Legislative Assembly on 15 November 1989 Legislative Council on 22 November 1989\