STATUTORY RULES.
1924. No. 30.
REGULATIONS UNDER THE COMMONWEALTH BANK ACT 1911-1920.
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulation under the Commonwealth Bank Act 1911-1920, to come into operation on the thirty-first day of December, 1923.
Dated this twenty-sixth day of February, 1924.
FORSTER,
Governor-General.
By His Excellency’s Command,
Ll. ATKINSON,
for the Treasurer.
Amendment of Regulations under the Commonwealth Bank Act 1911-1920.
Form “T” of the Commonwealth Bank Regulations is amended by omitting the words—
“Profit and Loss. |
Dr. | | | | | | | | Cr. |
| | £ | s. | d. | | £ | s. | d. |
To Reserve Fund................ | | | | By Profits for half-year ended..... | | | |
„ | Redemption Fund............. | | | | | | |
| | £ | | | | £ | | |
Reserve Fund. |
Dr. | | | | | | | | Cr. |
| | £ | s. | d. | | £ | s. | d. |
| | | | | By Balance................. | | | |
To Balance.................... | | | | „ Transfer from Profit and Loss Account of one-half of the Net Profits | | | |
| £ | | | | £ | | ” |
|
C.2731.—Price 3d.
and inserting in their stead the words—
“Profit and Loss. |
Dr. | | | | | | Cr. |
| | £ | s. | d. | | £ | s. | d. |
To Reserve Fund............... | | | | | | | |
„ | National Debt Sinking Fund..... | | | | By Profits for half-year— | | | |
| | | | | Banking Business.......... | | | |
„ | Commonwealth Treasury, being profits of Note Issue Department | | | | Note Issue Department | | | |
| | £ | | | | £ | | |
Reserve Fund. |
Dr. | | | | | | Cr. |
| | £ | s. | d. | | £ | s. | d. |
| | | | | By Balance................. | | | |
To Balance.................. | | | | ,, Transfer from Profit and Loss Account of one-half of the Net Profits of Banking business | | | |
| £ | | | | £ | | ” |
|
Printed and Published for the Government of the Commonwealth of Australia by Albert J. Mullett, Government Printer for the State of Victoria.
Overview
The Statutory Rules 1924, No. 30, known as the Regulations Under the Commonwealth Bank Act 1911-1920, were enacted to amend existing regulations governing the Commonwealth Bank. This legislative instrument was issued by the Governor-General, acting on the advice of the Federal Executive Council, and it came into operation on 31 December 1923. The Regulations modify the profit distribution framework within the Bank, specifically altering how profits from the banking business and the Note Issue Department are allocated to the Reserve Fund and the National Debt Sinking Fund. The overarching objective, as implied by the amendments, was to enhance the financial management and stability of the Commonwealth Bank, ensuring that profits from both its banking operations and note issuance were appropriately directed to bolster the bank's reserves and contribute to the national debt reduction efforts.
Scope and Application
The Statutory Rules 1924, No. 30, under the Commonwealth Bank Act 1911-1920, pertains to the regulation of the Commonwealth Bank, an institution of national significance, and specifically addresses the amendment of the existing regulations to alter the financial reporting and fund allocation practices. The regulation applies to the Commonwealth Bank itself, ensuring that it adheres to the prescribed financial procedures for the management of its Reserve and National Debt Sinking Funds. This regulation, effective from 31 December 1923, is made under the authority of the Governor-General and is designed to ensure the proper allocation of profits between the Reserve Fund and the National Debt Sinking Fund, specifically from the profits of the Note Issue Department and the Banking Business. The regulation does not explicitly exclude any entities or conduct from its application, nor does it provide for specific exemptions, thus encompassing all relevant financial transactions of the Commonwealth Bank as per the amended regulation. The scope of these regulations is limited to the Commonwealth level, impacting the bank's operations within the national jurisdiction.
Key Provisions
The Regulations under the Commonwealth Bank Act 1911-1920 (C1924L00030) primarily amend the accounting practices of the Commonwealth Bank by modifying the form designated as "T" (sections 1 and 2). The amendment alters the way profits are allocated, specifically detailing how profits from the Banking Business and the Note Issue Department are to be transferred to the Reserve Fund and the National Debt Sinking Fund. This means that instead of transferring profits into a Reserve Fund and a Redemption Fund, profits are now to be split between the Reserve Fund and the National Debt Sinking Fund.
These Regulations impose clear obligations on the Commonwealth Bank, requiring it to adjust its accounting practices to align with the new framework. The Bank must now ensure that profits from its Banking Business and the Note Issue Department are accurately calculated and appropriately allocated to the Reserve Fund and the National Debt Sinking Fund, respectively. This change mandates meticulous record-keeping and adherence to the new allocation process, ensuring transparency and compliance with the legislative requirements.
Failure to comply with these Regulations could result in serious consequences. While the specific offences and penalties are not detailed in the Regulations themselves, breaches of such statutory requirements under the Commonwealth Bank Act could potentially lead to civil or criminal liability. The penalties for such breaches could include fines or other legal repercussions, reflecting the importance of adherence to the prescribed accounting practices. These consequences underscore the necessity for the Commonwealth Bank to meticulously follow the amended procedures to avoid any legal ramifications.