Oil Agreement Act 1924

Legislation au C1924A00007 Not in force Act

Legislation content

OIL AGREEMENT.

 

No. 7 of 1924.

An Act to approve the further Agreement made between His Majesty’s Government of the Commonwealth of Australia and the Anglo-Persian Oil Company Limited.

[Assented to 7th July, 1924.]

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 Oil Agreement Act 1924.

Approval of Agreement.

2. The Agreement made between His Majesty’s Government of the Commonwealth of Australia and the Anglo-Persian Oil Company Limited (a copy of which Agreement is set forth in the Schedule to this Act) is approved.

Authority to borrow moneys to pay Commonwealth’s share of increased capital.

3.—(1.) The Treasurer may, from time to time, under the provisions of the Commonwealth Inscribed Stock Act 1911-1918, or under the provisions of any Act authorizing the issue of Treasury Bills, borrow moneys not exceeding in the whole the amount which it is necessary to borrow in order to enable the Commonwealth to subscribe for the shares for which it is required by the Agreement set forth in the Schedule to this Act to subscribe.

(2.) The amount borrowed shall be issued and applied only for the expenses of borrowing and for the purposes of the appropriation made by the next succeeding sub-section.

(3.) There may be issued and applied out of the proceeds of any loan raised under the authority of this section such sum as is necessary to enable the Commonwealth to subscribe for the shares for which it is required by the Agreement set forth in the Schedule to this Act to subscribe.


THE SCHEDULE.

 

Agreement made this sixth day of June One thousand nine hundred and twenty-four between the Commonwealth of Australia of the one part and the Anglo-Persian Oil Company Limited of London England of the other part Whereas on the fourteenth day of May One thousand nine hundred and twenty an agreement (hereinafter referred to as “the said Agreement”) was made between the Commonwealth of Australia (therein and hereinafter called “the Commonwealth”) of the one part and the Anglo-Persian Oil Company Limited of London England (therein and hereinafter called “the Oil Company”) of the other part whereby it was among other things agreed—

(a) that the Oil Company should take all necessary steps to form and register a Refinery Company with limited liability and subject to the conditions set forth in the said Agreement;

(b) that the Refinery Company should have a capital of Five hundred thousand pounds (£500,000) in shares of one pound each; and

(c) that the Commonwealth should subscribe for and be allotted Two hundred and fifty thousand and one (250,001) shares and that the Oil Company should subscribe for and be allotted Two hundred and forty-nine thousand nine hundred and ninety-six (249,996) shares:

And whereas in pursuance of the said Agreement a Refinery Company with limited liability known as the Commonwealth Oil Refineries Limited was formed and registered subject to the condition set forth in the said Agreement:

And whereas it is necessary and desirable that for the purposes of carrying out the objects of the Refinery Company as set forth in the said Agreement the capital of the Refinery Company be increased by Two hundred and fifty thousand pounds (£250,000):

Now therefore it is hereby agreed as follows:—

(1) This Agreement shall have no force or effect and shall not be binding on either party unless and until it is approved by the Parliament of the Commonwealth of Australia.

(2) This Agreement shall commence and come into full force and effect upon the date upon which it is so approved by the Parliament of the Commonwealth of Australia.

(3) The capital of the Refinery Company shall be increased by Two hundred and fifty thousand pounds (£250,000) in shares of One pound (£1) each.

(4) The Commonwealth shall subscribe for and be allotted out of the increased capital One hundred and twenty-five thousand (125,000) shares and the Oil Company shall subscribe for and be allotted out of the increased capital One hundred and twenty-five thousand (125,000) shares.

In witness whereof the parties hereto have executed these presents the day and year first above-mentioned.

Signed sealed and delivered by Stanley Melbourne Bruce the Prime Minister of the Commonwealth of Australia for and on behalf of the said Commonwealth in the presence of—

(Sgd.) S. M. BRUCE.

(Sgd.) R. R. Garran.

Signed sealed and delivered by Thomas John Greenway the Attorney under Power of the Anglo-Persian Oil Limited for and on behalf of the said Company in the presence of—

(Sgd.) T. J. GREENWAY.

(Sgd.) W. J. Byrne,

 

Solicitor,

 

Melbourne.

 

 

Overview

The Oil Agreement Act 1924 was enacted to approve an agreement between the Commonwealth of Australia and the Anglo-Persian Oil Company Limited, formalising the terms for the establishment of a refinery company with limited liability. The Act addresses the need for legislative approval and financial arrangements to facilitate the Commonwealth’s subscription to shares in the increased capital of the Refinery Company. Enacted by the Commonwealth Parliament, the primary policy objective of this Act is to ensure that the Commonwealth can effectively participate in the capital expansion of the Refinery Company, thereby securing a stake in the company’s operations and ensuring compliance with the agreed terms of the Agreement. The Act also provides the Treasurer with the authority to borrow the necessary funds to meet the Commonwealth's financial obligations under the Agreement.

Scope and Application

The Oil Agreement Act 1924 applies to the Agreement between the Commonwealth of Australia and the Anglo-Persian Oil Company Limited, which was approved by this legislation. It involves the Commonwealth subscribing to an increased capital of the Commonwealth Oil Refineries Limited, a company formed pursuant to the Agreement. The Act provides the authority for the Treasurer to borrow moneys to cover the Commonwealth's share of the increased capital, as well as the expenses of borrowing. The geographic reach of the Act is limited to the Commonwealth of Australia, and it does not extend beyond this jurisdictional scope. There are no stated exclusions or exemptions within the Act, but its application may be subject to the terms of the Agreement and any subordinate instruments issued under the authority of the Commonwealth Inscribed Stock Act 1911-1918 or other relevant Acts. The Act primarily focuses on the financial obligations and arrangements between the Commonwealth and the Anglo-Persian Oil Company Limited concerning the increased capital of the Commonwealth Oil Refineries Limited.

Key Provisions

The Oil Agreement Act 1924 (section 1) approves the Agreement made between the Commonwealth of Australia and the Anglo-Persian Oil Company Limited, as set out in the Schedule to the Act. This approval is necessary for the Agreement to have any legal force or effect (section 2). The Agreement, dated June 6, 1924, involves the formation and registration of a Refinery Company with limited liability, the Commonwealth Oil Refineries Limited, and the subsequent increase of its capital by £250,000. The Commonwealth is to subscribe for 125,000 shares, and the Anglo-Persian Oil Company Limited is to subscribe for another 125,000 shares (Schedule, clause 4). The Act imposes several obligations on the parties involved. The Treasurer is authorised to borrow moneys under the Commonwealth Inscribed Stock Act 1911-1918 or any other relevant Act to enable the Commonwealth to subscribe for its share of the increased capital of the Refinery Company (section 3(1)). The borrowed moneys must be used solely for the expenses of borrowing and for the appropriation specified in the next subsection (section 3(2)). Furthermore, the proceeds from any loans raised under the authority of this section must be used to subscribe for the shares required by the Agreement (section 3(3)). Failure to comply with the provisions of this Act may result in civil or criminal consequences. However, the Act itself does not specify any particular offences or penalties for breach. The penalties for any breach would be determined by other applicable laws, depending on the nature and severity of the breach. It is important for parties involved to adhere to the obligations and requirements set out in the Act to avoid any potential legal ramifications.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.