COMMONWEALTH SHIPPING.
No. 3 of 1923.
An Act to provide for the Establishment of the Commonwealth Shipping Line and for other purposes.
[Assented to 31st July, 1923.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title.
1. This Act may be cited as the Commonwealth Shipping Act 1923.
Commencement.
2. This Act shall commence on a date to be fixed by Proclamation.
Definitions.
3. In this Act, unless the contrary intention appears—
“the Board” means the Board of Directors appointed under this Act; and
“the Line” means the Australian Commonwealth Line of Steamers.
Establishment of Line.
4. A shipping line to be called the Australian Commonwealth Line of Steamers is hereby established.
Head office.
5. The head office of the Line shall be at such place in the Commonwealth as the Governor-General, by notice in the Gazette, directs.
Board of Directors.
6.—(1.) For the purposes of this Act there shall be a Board of Directors consisting of not less than three nor more than five members.
(2.) The members of the Board shall be appointed by the Governor-General and shall hold office during good behaviour for the period for which they were appointed, and shall be eligible for re-appointment.
(3.) Of the persons first appointed as members of the Board, one shall be appointed for a term of five, years, one shall be appointed for a term of four years, and the remainder shall be appointed for a term not exceeding three years.
(4.) Thereafter each appointment of a member of the Board shall be for a term not exceeding three years.
(5.) The Governor-General may appoint one of the members of the Board to be Chairman.
(6.) In the case of the illness or absence from the head office of the Line of any Director the Governor-General may appoint a person to perform the functions of that Director during the illness or absence.
(7.) If the number of members of the Board is not less than five, three members shall form a quorum, and if the number of members of the Board is less than five, two members shall form a quorum.
(8.) At meetings of the Board the Chairman shall have a deliberative vote, and, in the event of an equality of voting, a second or casting vote.
(9.) In the absence of the Chairman from any meeting the members of the Board present at the meeting shall elect one of their number to act as Chairman at the meeting.
Incorporation of Board.
7. The Board shall be a body corporate, under the name of the Australian Commonwealth Shipping Board, with perpetual succession and a common seal, with power to hold property, and capable of suing and being sued in its corporate name.
Remuneration of Directors.
8. There shall be paid to each Director such remuneration and travelling allowance as the Governor-General…
Overview
The Commonwealth Shipping Act 1923 was enacted to establish the Commonwealth Shipping Line and address the need for a national shipping line to support Australia's maritime trade and economic interests. Enacted by the Commonwealth Parliament, the primary policy objective of the Act was to create a state-owned shipping line to ensure reliable and efficient maritime services for Australia. The Act established the Australian Commonwealth Line of Steamers, vested in a Board of Directors appointed by the Governor-General, to manage the line's operations, including the acquisition and management of ships, shipyards, and other maritime assets. The Board was granted broad powers to conduct the business of a ship-owner and was tasked with building a robust national shipping fleet. The Act also provided for the transfer of existing Commonwealth-owned ships and assets to the new Line, and outlined mechanisms for raising capital and managing financial operations, including the issuance of debentures and the establishment of a Reserve Fund. The Act's provisions ensured that the Commonwealth Shipping Line would operate under conditions similar to private trading corporations, subject to relevant rates, taxes, and regulations.
Scope and Application
The Commonwealth Shipping Act 1923 establishes the Australian Commonwealth Line of Steamers, referred to as 'the Line', and vests it in the Australian Commonwealth Shipping Board, referred to as 'the Board', which is a body corporate with perpetual succession. The Act applies to the Board, its members, and its operations, and is of national scope, as it is enacted by the Commonwealth of Australia. The Act outlines the procedures for the establishment of the Line, including the appointment and terms of the Board members, the transfer of ships, islands, and other property from the Commonwealth to the Board, and the issuance of debentures. The Board's operations are subject to Commonwealth laws and regulations, with specific provisions for audit and reporting to Parliament. The Act also allows for the making of regulations to carry out or give effect to the Act, extending its application through subordinate instruments. There are no stated exclusions, exemptions, or thresholds in the Act.
Key Provisions
- The Commonwealth Shipping Act 1923 (C1923A00003) establishes the Australian Commonwealth Line of Steamers and the Board of Directors responsible for its management. Section 4 establishes the shipping line, with the Board of Directors being appointed under Section 6. The Board comprises between three and five members, appointed by the Governor-General, with specific term lengths for the initial appointments as detailed in Section 6(3) and subsequent appointments under Section 6(4). The Board is a body corporate, as stated in Section 7, with various powers including the ability to carry on ship-owning business, acquire and hold property, and establish offices and local boards. The Board's management of the shipping line is vested in it under Section 12.
- The Act imposes several obligations on the Board. It must transfer certain Commonwealth property, including merchant ships, stores, and property on Cockatoo and Schnapper Islands, to the Board, as per Sections 13 and 14. The Board is also responsible for issuing debentures to the Commonwealth for the transferred property, as outlined in Section 15. Additionally, the Board must raise working capital, subject to certain conditions, as per Section 16, and manage the profits of the Line, including the creation of a Reserve Fund, as per Section 19. The Board's operations, income, and property are subject to applicable rates, taxes, and charges under Section 20, and its accounts are subject to audit by the Auditor-General, as per Section 21.
- Breaches of the Act may result in civil or criminal consequences. The Act does not explicitly state penalties for non-compliance; however, failure to adhere to the prescribed procedures and obligations may lead to legal actions. For example, mismanagement or misappropriation of funds could potentially result in civil suits or criminal charges. Additionally, the Board's debentures and financial obligations to the Commonwealth are legally binding, and failure to meet these obligations could have serious financial and legal repercussions.
- Area of Law
- Commercial Law
- Corporate Law & Governance
- Instrument
- Act
- Concepts
- Definitions & Interpretation
- Commencement Provisions
- Licensing & Registration
- Regulatory Standards
