Commonwealth Banks Amendment Act 1985

Overview

The Commonwealth Banks Amendment Act 1985 (No. 194 of 1985) was enacted to amend the Commonwealth Banks Act 1959, addressing specific gaps and updating provisions to better serve the evolving financial landscape. This Act was introduced to the Australian Parliament, receiving assent on 16 December 1985 and commencing on 13 January 1986. Its purpose was to refine the functions and powers of the Development Bank, enhance the requirements for appointments within the service, and adjust regulations concerning examinations and rights preservation. The overarching policy objective was to ensure that the Development Bank could more effectively support small businesses and primary production-related enterprises by providing necessary financial resources and expertise, while also improving the governance and integrity of appointments within the institution.

Scope and Application

The Commonwealth Banks Amendment Act 1985 serves to amend the Commonwealth Banks Act 1959, extending and modifying the functions and powers of the Development Bank, as well as altering requirements for appointments within the Commonwealth Banking Corporation. This Act applies to the Commonwealth Government, the Development Bank, and the Commonwealth Banking Corporation, targeting the banking industry and conduct associated with financial services. The legislative changes are applicable across the Commonwealth of Australia, with the Act operating within the federal jurisdiction. Certain provisions, such as those relating to appointments and examinations, have been repealed or altered by the Act, and these changes are implemented through subordinate regulations. Notably, the Act allows for the expansion of the Development Bank's role in providing finance and participating in businesses, particularly small businesses, and modifies the criteria for appointments within the Commonwealth Banking Corporation by introducing the requirement of a certificate of good character from a prescribed class of persons.

Key Provisions

The Commonwealth Banks Amendment Act 1985 makes significant amendments to the Commonwealth Banks Act 1959. Section 72 of the Principal Act is repealed and substituted with new provisions outlining the functions of the Development Bank. The new functions (section 72(a)) allow the Development Bank to provide finance for businesses, particularly small businesses, when finance is not otherwise available on reasonable terms. The Bank can also participate in such businesses (section 72(b)) and provide advice and assistance to promote efficient business conduct (section 72(c)). Section 74 of the Principal Act is amended to expand the powers of the Development Bank. The new powers include forming or participating in the formation of companies (subsection 74(2)(ha)), subscribing for or acquiring shares or securities in companies (subsection 74(2)(hb)), and entering into partnerships or profit-sharing arrangements (subsection 74(2)(hc)). These provisions enable the Development Bank to engage more directly with businesses it aims to support. Section 90 of the Principal Act is amended to include a new requirement for appointments to the Service. The Corporation must be satisfied, based on the certificate of a person in a prescribed class, regarding the applicant’s good character (subsection 90(1)(ba)). This ensures that individuals appointed to certain positions within the Service meet specific character standards. Section 91 of the Principal Act is repealed, which removes the previous provisions related to admission to examinations. This change likely reflects a shift in how qualifications or examinations for certain roles are managed within the Service. Section 128 of the Principal Act is repealed, which removes the previous provisions related to the preservation of rights. This suggests that the rights previously protected under this section are no longer applicable under the amended Act. The Act also outlines the penalties and consequences for breaches of the amended legislation. While specific penalties are not detailed within the text provided, breaches of the Commonwealth Banks Act 1959, as amended, could lead to both civil and criminal consequences. Civil penalties might include fines, while criminal penalties could include imprisonment, depending on the severity and nature of the breach. The exact penalties would be determined based on the specific provisions of the amended Act and any related regulations.