Export Finance and Insurance Corporation Amendment Act 2007

Overview

The Export Finance and Insurance Corporation Amendment Act 2007, enacted by the Parliament of Australia, was introduced to revise provisions of the Export Finance and Insurance Corporation Act 1991. This Act aims to update and refine the governance structure of the Export Finance and Insurance Corporation (EFIC), ensuring that the corporation operates with enhanced efficiency and effectiveness. The amendments include changes to the appointment terms and eligibility of board members, the composition of the Board, and the appointment process for the Managing Director. The overarching policy objective is to streamline the management and oversight of EFIC, aligning it with contemporary governance practices while maintaining the integrity and stability of the institution. The Act received Royal Assent on 19 February 2007 and most provisions commenced on 1 July 2007.

Scope and Application

The Export Finance and Insurance Corporation Amendment Act 2007 amends the Export Finance and Insurance Corporation Act 1991 to revise the structure and operation of the Export Finance and Insurance Corporation (EFIC). The Act applies to the EFIC, which is a Commonwealth entity, and to its Board and its members. The changes introduced by this legislation include modifications to the appointment terms and eligibility for reappointment of non-government members of the Board, the replacement of certain references to the Chief Executive Officer of the Australian Trade Commission, and adjustments to the quorum requirements for Board meetings. The Act also alters the appointment process for the Managing Director and the potential for a Deputy Managing Director. These amendments took effect on 1 July 2007, with certain provisions commencing on the date the Act received Royal Assent, which was 19 February 2007. The Act does not specify any exclusions or exemptions, and its application is confined to the Commonwealth level.

Key Provisions

The Export Finance and Insurance Corporation Amendment Act 2007 (C2007A00006) amends the Export Finance and Insurance Corporation Act 1991, with specific sections coming into effect either on the day of Royal Assent (19 February 2007) or a later date specified by proclamation (1 July 2007). The key amendments are detailed in Schedule 1, which modifies several sections of the 1991 Act. For instance, the definition of "appointed member" in section 3 is altered by removing the reference to the Chief Executive Officer of the Australian Trade Commission (item 1). Furthermore, the maximum number of appointed members on the Board of the Export Finance and Insurance Corporation (EFIC) is reduced from 6 to 5 (item 3). In addition, the tenure of these members is altered, with a term limit of 2 terms, or 3 terms if they have served as the Chairperson (item 7). A saving provision ensures that members whose appointments were in force before the amendments continue their terms (item 8). The obligations imposed by these amendments primarily concern the appointment and tenure of Board members. Appointed members, excluding the government member, must now be appointed for a term of 3 years (item 7). They are eligible for reappointment but cannot serve more than 2 terms or 3 terms if they have served as the Chairperson (item 7A). The Managing Director is to be appointed by the Board after consulting with the Minister (item 11(2)), and the Board may appoint a Deputy Managing Director after similar consultation (item 11(3)). The saving provisions ensure that existing appointments are not immediately affected by these changes unless terminated or varied by the Minister or the Board (items 8 and 12). Breaches of the obligations and requirements set out in the Export Finance and Insurance Corporation Act 1991, as amended by this Act, could result in various consequences. For example, exceeding the term limits for appointed members could lead to their removal from office. The original Act provides for the termination of appointments by the Minister under sections 42 and 43 or by the Board under section 72(b). While the Act does not explicitly state penalties for these breaches, it does outline the processes for addressing non-compliance, which could include removal from office or other disciplinary actions.