Australian Industry Development Corporation Amendment Act 1992
No. 169 of 1992
`An Act to amend the Australian Industry Development Corporation Act 1970, and for related purposes
[Assented to 11 December 1992]
[Date of commencement 8 January 1993]
The Parliament of Australia enacts:
Short title etc.
1.(1) This Act may be cited as the Australian Industry Development Corporation Amendment Act 1992.
(2) In this Act, “Principal Act” means the Australian Industry Development Corporation Act 19701.
Powers of Corporation
2. Section 7 of the Principal Act is amended by inserting after paragraph (2)(ba) the following paragraph:
“(bb) to enter into:
(i) arrangements known as swaps, foreign exchange agreements, forward rate agreements, option agreements, futures agreements or hedge agreements; or
(ii) arrangements having a similar purpose or effect;”.
Membership of Board
3.(1) Section 11 of the Principal Act is amended by omitting paragraph (1)(e) and substituting the following paragraph:
“(e) one other member.”.
(2) If, immediately before the commencement of this Act. only one person held office as a Director referred to in paragraph 11(1)(e) of the Principal Act. that person continues to hold office as a member referred to in paragraph 11(1)(e) of the Principal Act. as amended by this Act. as if:
(a) this Act had been in operation when the person was appointed; and
(b) the person had been appointed under the Principal Act as amended by this Act.
Meetings of Board
4. Section 21 of the Principal Act is amended by omitting subsection (5) and substituting the following subsection:
“(5) At a meeting of the Board a quorum is constituted by 2 Directors, of whom one is the Chairman or the Chief Executive and the other is neither the Chairman nor the Chief Executive.”.
Guarantee by Commonwealth
5. Section 35 of the Principal Act is amended:
(a) by omitting from subsection (1) “1994” and substituting “1998”;
(b) by adding at the end the following subsections:
“(8) If, under an agreement entered into by the Corporation before 1 July 1998. money is taken on deposit by the Corporation on or after that date, subsection (1) does not apply to money payable by the Corporation under the agreement so far as the agreement relates to rights and liabilities arising out of the taking of money on deposit on or after 1 July 1998.
“(9) For the purpose of subsection (8). the leaving of money on deposit with the Corporation at the end of the term of a deposit is to be regarded as a fresh taking of the money on deposit by the Corporation at the end of that term.
“(10) Where:
(a) under an agreement entered into by the Corporation
before 1 July 1998, money is taken on deposit by the Corporation before 1 July 1998 for a term ending on or after that date: and
(b) the agreement provides that at the end of that term the money may be left on deposit with the Corporation:
nothing in subsection (8) or (9) affects the operation of subsection (1) in relation to money payable under the agreement in respect of the deposit taken before 1 July 1998.”.
Consequential amendments
6. The Principal Act is further amended as set out in the Schedule.
SCHEDULE Section 6
CONSEQUENTIAL AMENDMENTS
Subsection 11(2):
Omit “Directors”, substitute “Director”.
Subsections 11(3) and (4):
Omit “a Director” (wherever occurring), substitute “the Director”.
Subsection 11(5):
Omit all words after “by reason”, substitute “of there being a vacancy in the membership of the Board.”.
Subsection 12(1):
Omit “a Director”, substitute “the Director”.
Subsection 13(2):
Omit “a Director”, substitute “the Director”.
Section 16:
Omit “the Directors” (wherever occurring), substitute “the Director”.
Section 17:
Omit “a Director”, substitute “the Director”.
Section 18:
Omit “a Director”, substitute “the Director”.
Subsection 19(1):
Omit “a Director”, substitute “the Director”.
Paragraph 19(3)(d):
Omit “a Director”, substitute “the Director”.
Subsection 20A(1):
Omit “a Director”, substitute “the Director”.
Subsection 20A(2):
Omit “a Director”, substitute “the Director”.
Subsection 33(2):
Omit “any Director”, substitute “the Director”.
NOTE
1. No. 15, 1970, as amended. For previous amendments, see No. 216, 1973; No. 4, 1975; Nos. 37 and 91, 1976; No. 36, 1978; No. 121, 1980; Nos. 61 and 92, 1981; Nos. 115 and 122, 1983; No. 65, 1985; No. 11, 1987; No. 125, 1988; No. 91, 1989 (as amended by No. 66, 1991); and No. 10, 1990.
[Minister’s second reading speech made in—
Senate on 10 September 1992
House of Representatives on 13 October 1992]
Overview
The Australian Industry Development Corporation Amendment Act 1992, enacted by the Parliament of Australia and assented to on 11 December 1992, is an amendment to the Australian Industry Development Corporation Act 1970. The primary objective of this legislation was to modernise and expand the operational capabilities of the Australian Industry Development Corporation (AIDC), particularly by enhancing its financial instruments and governance structure. By allowing the AIDC to engage in financial arrangements such as swaps, foreign exchange agreements, and hedge agreements, the Act aimed to better equip the Corporation to support and develop Australian industries in a globalised economic environment. Additionally, the Act revised the composition and quorum requirements of the Corporation's Board to streamline decision-making processes. The Act also extended the Commonwealth's guarantee period for certain financial agreements, providing greater stability and assurance to stakeholders.
Scope and Application
The Australian Industry Development Corporation Amendment Act 1992 amends the Australian Industry Development Corporation Act 1970 to enhance the operations and financial capabilities of the Australian Industry Development Corporation (AIDC). This Act applies to the AIDC as an entity and its powers and responsibilities. The Act allows the AIDC to enter into various financial agreements such as swaps, foreign exchange agreements, and hedge agreements, thereby extending its financial flexibility. The Act also revises the composition and quorum requirements for the AIDC's Board of Directors, reducing the number of Directors and setting the quorum for Board meetings at two, including the Chairman or Chief Executive and one other Director. The amendments include adjustments to the Commonwealth's guarantee provisions and extend the guarantee period from 1994 to 1998, with specific provisions for deposits taken on or after 1 July 1998. The Act applies nationally, affecting the AIDC's operations across Australia. Subordinate instruments may further define and extend the application of these provisions.
Key Provisions
The Australian Industry Development Corporation Amendment Act 1992 (Act) makes several key amendments to the Australian Industry Development Corporation Act 1970 (Principal Act). Most notably, it expands the powers of the Corporation to include financial arrangements such as swaps, foreign exchange agreements, and other similar contracts (section 2). The Act also reduces the number of members on the Board of the Corporation from more than one to a single member, while allowing any existing sole member to continue in their role as if the change had always been in effect (section 3). Additionally, it modifies the quorum requirements for Board meetings, specifying that two Directors are required, with at least one being neither the Chairman nor the Chief Executive (section 4). The Act extends the Commonwealth's guarantee of the Corporation's obligations until 1998 and includes provisions for handling deposits taken before and after 1 July 1998 (section 5). It also includes consequential amendments to various sections of the Principal Act to reflect the changes in Board membership and roles (section 6).
The obligations imposed by the Act on the Corporation include the ability to enter into a broader range of financial agreements (section 2). The Corporation must ensure that its new financial activities comply with the terms set out in the amended Act. The reduction in the number of Board members to a single individual changes the administrative and decision-making structure, requiring the remaining member to fulfill roles previously shared among multiple Directors (section 3). Furthermore, the new quorum requirement for Board meetings necessitates that at least two Directors are present, with specific conditions regarding their roles (section 4). The Act also places an obligation on the Corporation to adhere to the extended guarantee period until 1998, and to manage deposits taken before and after 1 July 1998 in accordance with the new provisions (section 5).
Breaches of the provisions set out in the Act can lead to various consequences. While the Act does not explicitly state offences or penalties, non-compliance with financial regulations or Board requirements could potentially result in legal action under the broader legislative framework governing corporate behaviour and financial management in Australia. The penalties for such breaches would depend on the specific nature of the non-compliance and could range from fines to more severe sanctions, depending on the jurisdiction and the severity of the breach. The maximum penalties are not specified in the Act itself but would be determined in accordance with applicable laws and regulations.