COMMONWEALTH BANKS ACT 1959
- Reprinted as at 31 January 1990 (HISTACT CHAP 85 #DATE 31:01:1990)
*1* The Commonwealth Banks Act 1959 as shown in this reprint comprises Act No.
5, 1959 amended as indicated in the Tables below.
Table of Acts
Act Number Date Date of Application, saving or
and year of Assent commencement transitional
provisions
Commonwealth Banks Act 1959
5, 1959 23 Apr 1959
14 Jan 1960
(see s. 2 and
Gazette 1960, p. 47)
Commonwealth Banks Act 1961
75, 1961 27 Oct 1961
27 Oct 1961
S. 3 (2)
Commonwealth Banks Act 1962
3, 1962 23 Mar 1962
23 Mar 1962
S. 3 (2)
Commonwealth Banks Act 1963
57, 1963 28 Oct 1963
28 Oct 1963
S. 3 (2)
Commonwealth Banks Act 1965
132, 1965 18 Dec 1965
14 Feb 1966
S. 4
Commonwealth Banks Act 1966
58, 1966 29 Oct 1966
26 Nov 1966
-
Statute Law Revision (Decimal Currency) Act 1966
93, 1966 29 Oct 1966
1 Dec 1966
-
Commonwealth Banks Act 1968
144, 1968 9 Dec 1968
S. 6: 1 Jan 1969
Remainder:
Royal Assent
S. 13 (2)
Commonwealth Banks Act 1973
18, 1973 11 Apr 1973
11 Apr 1973
-
Commonwealth Banks Act (No. 2) 1973
117, 1973 26 Oct 1973
26 Oct 1973
-
Statute Law Revision Act 1973
216, 1973 19 Dec 1973
31 Dec 1973
Ss. 9 (1)
and 10
Commonwealth Banks Act 1974
81, 1974 18 Oct 1974
18 Oct 1974
S. 4 (2)
Administrative Changes (Consequential Provisions) Act 1978
36, 1978 12 June 1978
12 June 1978
-
Commonwealth Banks Amendment Act 1978
77, 1978 22 June 1978
22 June 1978
-
Public Service and Statutory Authorities Amendment Act 1980
177, 1980 17 Dec 1980
Part IV (ss.
52 and 53):
Royal Assent (a)
-
Commonwealth Banks Amendment Act 1981
29, 1981 14 Apr 1981
12 May 1981
Ss. 5 (2),
(3) and 16
Public Service and Statutory Authorities Amendment Act 1983
92, 1983 22 Nov 1983
22 Nov 1983
-
Public Service Reform Act 1984
63, 1984 25 June 1984
Part X (s. 153):
1 Nov 1984
(see Gazette 1984,
No. S383, p. 1) (b)
-
Commonwealth Banks Amendment Act 1984
76, 1984 25 June 1984
29 June 1984
(see Gazette 1984,
No. S241, p. 1)
Ss. 8 (2)-(4),
11 (2), 12
(2), (3), 17
(2),
(3), 19 (2),
23 (2) and 26
Commonwealth Banks Amendment Act 1985
194, 1985 16 Dec 1985
13 Jan 1986
S. 4 (2)
Commonwealth Banks Amendment Act 1987
182, 1987 26 Dec 1987
Ss. 3 and 32:
30 June 1988
Ss. 27-29, 34
(2), 35 and
Part II of the
Schedule: 1 July 1988
Remainder:
23 Jan 1988
Ss. 16 (2),
24 (2), (3)
and 35
Government Business Enterprises (Miscellaneous Reforms) Act 1988
123, 1988 14 Dec 1988
Part II (ss. 3-12):
26 Jan 1989
Part VI (ss. 26-31):
1 Jan 1989 (see
Gazette 1988,
S399, p. 1)
Part VII (ss. 32-37):
14 Nov 1988
Remainder: Royal Assent
Ss. 18 and 19
Banking Legislation Amendment Act 1989
129, 1989 7 Nov 1989
Part I (ss.
1 and 2), ss.
3, 26, 29-33, 35,
38 and 40:
Royal Assent
Remainder:
28 Dec 1989
(see Gazette 1989,
S383, p. 1)
Ss. 42 (2)
and 43
(a) The Commonwealth Banks Act 1959 was amended by Part IV (sections 52 and
53) only of the Public Service and Statutory Authorities Amendment Act 1980,
subsection 2 (1) of which provides as follows:
"(1) Sections 1, 2, 3 and 4, sub-sections 5 (2) and 7 (2), (5), (6) and (7),
sections 8, 9, 10, 11, 12, 13, 16, 17, 18 and 19, sub-sections 21 (1) and 37
(5), sections 38, 43 and 44, sub-section 45 (10) and sections 46 to 66
(inclusive) shall come into operation on the day on which this Act receives
the Royal Assent."
(b) The Commonwealth Banks Act 1959 was amended by Part X (section 153)
only of the Public Service Reform Act 1984, subsection 2 (4) of which provides
as follows:
"(4) The remaining provisions of this Act shall come into
operation on such day as is, or on such respective days as are, fixed by
Proclamation."
Table of Amendments
ad=added or inserted am=amended rep=repealed rs=repealed and substituted
Title am. No. 76, 1984
S. 3 rep. No. 117, 1973
S. 4 am. No. 117, 1973
rs. No. 76, 1984
S. 5 rs. No. 117, 1973
am. No. 182, 1987
S. 5A ad. No. 117, 1973
am. No. 29, 1981
rep. No. 182, 1987
S. 7 am. No. 76, 1984
S. 7A ad. No. 182, 1987
S. 9 am. No. 76, 1984; No. 182, 1987
S. 10 rep. No. 76, 1984
ad. No. 182, 1987
S. 11 am. No. 117, 1973; No. 29, 1981;
No. 76, 1984; No. 182, 1987
S. 12 am. No. 117, 1973; No. 29, 1981;
No. 182, 1987
S. 12A ad. No. 182, 1987
S. 13 am. No. 76, 1984
S. 14 am. Nos. 117 and 216, 1973; No. 81, 1974;
No. 29, 1981; No. 182, 1987;
No. 123, 1988
S. 15 am. No. 182, 1987
S. 16 am. No. 58, 1966; No. 117, 1973; No. 29, 1981;
No. 76, 1984; No. 182, 1987
S. 17 am. No. 117, 1973; No. 29, 1981;
No. 182, 1987
S. 18 am. No. 117, 1973; No. 29, 1981
S. 19 am. No. 182, 1987
Ss. 20, 21 am. No. 29, 1981
rep. No. 76, 1984
S. 22 am. No. 76, 1984
S. 23 rs. No. 76, 1984
S. 24 rs. No. 29, 1981
am. No. 76, 1984; No. 182, 1987
S. 25 am. No. 144, 1968; No. 81, 1974;
No. 29, 1981
rs. No. 123, 1988
S. 26 am. No. 182, 1987
rs. No. 123, 1988
Ss. 26A-26D ad. No. 123, 1988
Heading to Part IV am. No. 76, 1984
S. 27 am. No. 117, 1973; No. 29, 1981
rs. No. 76, 1984
S. 28 am. No. 76, 1984; No. 182, 1987
S. 29 am. No. 29, 1981; No. 76, 1984;
No. 182, 1987
S. 30 am. No. 29, 1981
rs. No. 76, 1984
am. No. 129, 1989
S. 30A ad. No. 129, 1989
S. 31 am. No. 29, 1981
rs. No. 76, 1984
am. No. 129, 1989
S. 32 rs. No. 76, 1984; No. 182, 1987
S. 33 am. No. 144, 1968; No. 81, 1974;
No. 29, 1981
rep. No. 76, 1984
ad. No. 129, 1989
S. 34 rep. No. 76, 1984
S. 35 rs. No. 76, 1984
am. No. 182, 1987
S. 36 rs. No. 76, 1984; No. 182, 1987
Ss. 37, 38 am. No. 76, 1984
S. 39 am. No. 76, 1984
rep. No. 182, 1987
S. 40 am. No. 117, 1973; No. 29, 1981
S. 41 am. No. 182, 1987; No. 129, 1989
S. 42 am. No. 29, 1981; No. 76, 1984;
No. 182, 1987
S. 42A ad. No. 76, 1984
am. No. 129, 1989
S. 43 am. No. 29, 1981
S. 44 rs. No. 76, 1984
S. 45 am. No. 144, 1968; No. 81, 1974;
No. 29, 1981
rep. No. 76, 1984
S. 46 rep. No. 76, 1984
S. 47 rs. No. 76, 1984
am. No. 182, 1987
S. 48 am. No. 182, 1987
S. 49 am. No. 76, 1984
S. 50 am. No. 129, 1989
S. 51 am. No. 76, 1984
rep. No. 182, 1987
S. 52 am. No. 132, 1965; No. 29, 1981
rep. No. 182, 1987
S. 53 am. No. 29, 1981
rep. No. 129, 1989
S. 54 rep. No. 144, 1968
Part VI (ss. 55-65, 67-70) rep. No. 182, 1987
Ss. 55, 56 am. No. 76, 1984
rep. No. 182, 1987
S. 57 rep. No. 182, 1987
Ss. 58, 59 am. No. 76, 1984
rep. No. 182, 1987
S. 60 am. No. 29, 1981; No. 76, 1984
rep. No. 182, 1987
S. 61 rep. No. 182, 1987
S. 62 am. No. 76, 1984
rep. No. 182, 1987
S. 63 am. No. 117, 1973; No. 76, 1984
rep. No. 182, 1987
S. 64 am. No. 76, 1984
rep. No. 182, 1987
S. 65 am. No. 29, 1981
rep. No. 182, 1987
S. 66 rep. No. 18, 1973
S. 67 am. No. 76, 1984
rep. No. 182, 1987
S. 68 rs. No. 76, 1984
ep. No. 182, 1987
S. 69 am. No. 93, 1966; No. 117, 1973;
No. 29, 1981; No. 76, 1984
rep. No. 182, 1987
S. 70 am. No. 29, 1981; No. 76, 1984
rep. No. 182, 1987
S. 72 am. No. 81, 1974; No. 77, 1978;
No. 29, 1981
rs. No. 194, 1985
S. 74 am. No. 29, 1981; No. 194, 1985;
No. 182, 1987
S. 75 am. No. 75, 1961; No. 3, 1962; No. 57, 1963
No. 29, 1981; No. 76, 1984
S. 76 am. No. 29, 1981; No. 129, 1989
S. 77 rep. No. 129, 1989
S. 77A ad. No. 182, 1987
S. 78 am. No. 144, 1968; No. 81, 1974;
No. 29, 1981
rep. No. 76, 1984
ad. No. 129, 1989
S. 79 rep. No. 76, 1984
S. 80 rs. No. 76, 1984
am. No. 182, 1987
S. 81 am. No. 182, 1987
S. 82 am. No. 76, 1984
S. 83 am. No. 76, 1984; No. 129, 1989
S. 84 am. No. 93, 1966
rep. No. 77, 1978
S. 85A ad. No. 77, 1978
rep. No. 182, 1987
S. 87 am. No. 117, 1973; No. 29, 1981;
No. 182, 1987
Heading to Div. 2 of Part VIII am. No. 182, 1987
S. 87A ad. No. 182, 1987
S. 88 rs. No. 182, 1987
S. 89 rep. No. 182, 1987
S. 89A ad. No. 177, 1980
am. No. 29, 1981
rep. No. 92, 1983
S. 89B ad. No. 177, 1980
rep. No. 92, 1983
S. 90 am. No. 117, 1973; Nos. 63 and 76, 1984;
No. 194, 1985
rep. No. 182, 1987
S. 91 rep. No. 194, 1985
Ss. 92, 93 rep. No. 182, 1987
S. 94 am. No. 29, 1981
rep. No. 182, 1987
S. 95 am. No. 117, 1973; No. 29, 1981
rs. No. 76, 1984
rep. No. 182, 1987
S. 96 am. No. 144, 1968; No. 29, 1981
rep. No. 182, 1987
Div. 3 of Part VIII (ss.97-101) rep. No. 182, 1987
S. 97 rep. No. 182, 1987
S. 98 am. No. 29, 1981
rep. No. 182, 1987
S. 99 am. No. 144, 1968; No. 117, 1973;
No. 29, 1981
rep. No. 182, 1987
S. 100 am. No. 29, 1981
rep. No. 182, 1987
S. 101 am. No. 117, 1973; No. 81, 1974;
No. 29, 1981
rep. No. 182, 1987
Div. 4 of Part VIII
(ss. 102, 103, 105, 106) rep. No. 182, 1987
Ss. 102, 103 am. No. 29, 1981
rep. No. 182, 1987
S. 104 rep. No. 144, 1968
S. 105 am. No. 29, 1981
rep. No. 182, 1987
Heading to Div. 5 of Part VIII rep. No. 29, 1981
S. 106 am. No. 144, 1968; No. 29, 1981
rep. No. 182, 1987
Heading to Div. 5 of Part VIII rs. No. 29, 1981
Div. 5 of Part VIII (s. 107) rep. No. 182, 1987
S. 107 rs. No. 144, 1968
am. No. 117, 1973; No. 29, 1981
rep. No. 182, 1987
Heading to Div. 5A of
Part VIII ad. No. 29, 1981
Div. 5A of Part VIII
(ss. 108, 109) rep. No. 182, 1987
S. 108 am. No. 144, 1968; No. 117, 1973;
No. 29, 1981
rep. No. 182, 1987
S. 109 am. No. 117, 1973; No. 81, 1974;
No. 29, 1981
rep. No. 182, 1987
S. 110 am. No. 36, 1978
S. 110A ad. No. 29, 1981
am. No. 182, 1987
S. 111 am. No. 93, 1966; No. 144, 1968;
No. 77, 1978; No. 76, 1984
rep. No. 182, 1987
S. 112 am. No. 29, 1981; No. 76, 1984
rs. No. 182, 1987
rep. No. 123, 1988
S. 113 rep. No. 182, 1987
S. 114 am. No. 76, 1984
S. 115 rep. No. 182, 1987
S. 117 rs. No. 76, 1984
S. 118 am. No. 76, 1984
rs. No. 182, 1987
S. 119 am. No. 117, 1973; No. 29, 1981
rs. No. 76, 1984
am. No. 182, 1987
S. 120 am. No. 29, 1981; No. 76, 1984
S. 121 am. No. 117, 1973; No. 29, 1981;
No. 129, 1989
S. 121A ad. No. 123, 1988
S. 123 am. No. 76, 1984
Ss. 124A , 124B ad. No. 182, 1987
S. 126 am. No. 76, 1984
S. 128 am. No. 216, 1973
rep. No. 194, 1985
S. 129 am. No. 93, 1966; No. 29, 1981;
No. 76, 1984; No. 182, 1987
COMMONWEALTH BANKS ACT 1959 - TABLE OF PROVISIONS
TABLE
TABLE OF PROVISIONS
Section
PART I - PRELIMINARY
1. Short title
2. Commencement
4. Interpretation
5. Application to Territories
6. This Act subject to Banking Act
PART II - THE COMMONWEALTH BANKING CORPORATION
7. The Commonwealth Banking Corporation
7A. Assets and liabilities of the Corporation
8. Establishment of Commonwealth Banking Corporation Board
9. Functions of Commonwealth Banking Corporation Board
10. Delegation by Board
11. Differences of opinion on questions of policy
12. Management of the Corporation
12A. Delegation by the Managing Director
13. Managing Director and Secretary to Treasury to establish liaison
PART III - THE COMMONWEALTH BANKING CORPORATION BOARD
14. Membership of Board
15. Declaration by members
16. Disqualifications from membership
17. Vacation of office
18. Chairman and Deputy Chairman of the Board
19. Meetings of Board
22. Vacancies not to invalidate proceedings
23. Deputy Secretary may attend meeting of Board
24. Disclosure of pecuniary interests of members
25. Appointment of Managing Director and Deputy Managing Director
26. Holding of office during Board's pleasure etc.
26A. Managing Director and Deputy Managing Director
hold office on full time basis
26B. Terms and conditions of appointment not provided for by Act
26C. Disclosure of interests
26D. Exclusion of Managing Director and Deputy
Managing Director from certain deliberations
PART IV - THE COMMONWEALTH BANK
27. The Commonwealth Bank
28. General functions of Commonwealth Bank
29. Powers of Commonwealth Bank
30. Capital
30A. Transfers from reserves to capital
31. Commonwealth Bank Reserve Fund
32. Payment of dividends by Commonwealth Bank
33. Crediting of amounts to Commonwealth Bank Reserve Fund
35. Management of Commonwealth Bank
36. Commonwealth Bank to pay expenses of Corporation
37. Payment for services
38. Amalgamation of other banks with Commonwealth Bank
PART V - THE COMMONWEALTH SAVINGS BANK
40. The Commonwealth Savings Bank
41. General functions of Savings Bank
42. Powers of Savings Bank
42A. Share Capital
43. Reserve Fund
44. Profits of Savings Bank
47. Management of Savings Bank
48. Savings Bank to pay share of expenses of Corporation
49. Payment for services
50. Amalgamation of other banks with Commonwealth Savings Bank
PART VII - THE COMMONWEALTH DEVELOPMENT BANK
71. The Commonwealth Development Bank
72. Functions of Development Bank
73. Matters to be considered in providing finance
74. Powers of Development Bank
75. Capital of the Development Bank
76. Commonwealth Development Bank Reserve Fund
77A. Payment of dividends by Development Bank
78. Crediting of amounts to Commonwealth Development Bank Reserve Fund
80. Management of Development Bank
81. Development Bank to pay share of expenses of Corporation
82. Payment for services
83. Agents etc.
85. Loans by Treasurer
86. Interpretation
PART VIII - THE COMMONWEALTH BANKING CORPORATION SERVICE
Division 1 - Preliminary
87. Interpretation
Division 2 - Appointments
87A. Application of merit principle, prohibition of patronage etc.
88. Appointment of officers
Division 6 - General
110. Superannuation fund
110A. Benefits
PART IX - MISCELLANEOUS
114. Interpretation
116. Appointment of attorneys
117. Guarantee by Commonwealth
118. Accounts and records
119. Taxation
120. Audit
121. Annual reports and financial statements
121A. Information relating to remuneration of
Managing Director and Deputy Managing Director
122. Returns
123. Power to improve property and carry on business
124. Execution of contracts
124A. Affixing of seals
124B. Persons dealing with bodies
125. Judicial notice of seals
126. Investment of trust moneys
127. Validity of acts and transactions
129. Regulations
COMMONWEALTH BANKS ACT 1959 - LONG TITLE
SECT
An Act to establish a Commonwealth Banking Corporation and to
make provision for the conduct of the business of the
Commonwealth Bank of Australia, the Commonwealth Savings Bank of
Australia and the Commonwealth Development Bank of Australia
COMMONWEALTH BANKS ACT 1959 - PART I
PART I - PRELIMINARY
COMMONWEALTH BANKS ACT 1959 - SECT 1
Short title
SECT
1. This Act may be cited as the Commonwealth Banks Act 1959.*1*
SEE NOTES TO FIRST ARTICLE OF THIS CHAPTER .
COMMONWEALTH BANKS ACT 1959 - SECT 2
Commencement
SECT
2. This Act shall come into operation on the day on which the Reserve Bank
Act 1959 comes into operation.*1*
SEE NOTES TO FIRST ARTICLE OF THIS CHAPTER .
COMMONWEALTH BANKS ACT 1959 - SECT 4
Interpretation
SECT
4. In this Act, unless the contrary intention appears -
"Australia" includes the external Territories;
"bank" means a person carrying on the business of banking, and includes the
Commonwealth Bank, the Savings Bank and the Development Bank;
"Board" means the Commonwealth Banking Corporation Board;
"Commonwealth Bank" means the Commonwealth Bank of Australia in existence by
force of section 27;
"Corporation" means the Commonwealth Banking Corporation;
"Deputy Managing Director" means the Deputy Managing Director of the
Corporation;
"Development Bank" means the Commonwealth Development Bank of Australia;
"former Commonwealth Bank" means the Commonwealth Bank of Australia
established under the Commonwealth Bank Act 1911 and continued in existence
under the Commonwealth Bank Act 1945;
"Managing Director" means the Managing Director of the Corporation;
"net profits", except in section 118, means net profits after provision for
income tax;
"officer" means an officer of the Service;
"repealed Act" means an Act repealed by the Commonwealth Bank Act 1945 or by
the Reserve Bank Act 1959;
"Reserve Bank" means the Reserve Bank of Australia;
"Savings Bank" means the Commonwealth Savings Bank of Australia;
"Service" means the Commonwealth Banking Corporation Service;
"statutory office" means the office of Managing Director or Deputy Managing
Director.
COMMONWEALTH BANKS ACT 1959 - SECT 5
Application to Territories
SECT
5. This Act extends to all the Territories.
COMMONWEALTH BANKS ACT 1959 - SECT 6
This Act subject to Banking Act
SECT
6. This Act has effect subject to the Banking Act 1959 and to the
regulations under that Act.
COMMONWEALTH BANKS ACT 1959 - PART II
PART II - THE COMMONWEALTH BANKING CORPORATION
COMMONWEALTH BANKS ACT 1959 - SECT 7
The Commonwealth Banking Corporation
SECT
7. (1) There shall be a Commonwealth Banking Corporation.
(2) The Corporation -
(a) is a body corporate;
(b) shall have a seal; and
(c) is capable of acquiring, holding and disposing of real and personal
property and of suing and being sued.
(3) The Corporation shall provide and make available to the Commonwealth
Bank, the Savings Bank and the Development Bank such officers and employees as
are necessary for efficiently conducting the business of each of those banks.
COMMONWEALTH BANKS ACT 1959 - SECT 7A
Assets and liabilities of the Corporation
SECT
7A. (1) The property of the Corporation, whether acquired before or after
the commencement of this section, vests in the Commonwealth Bank.
(2) The liabilities of the Corporation, whether incurred before or after the
commencement of this section, shall be deemed to be liabilities incurred by
the Commonwealth Bank.
(3) Any legal proceedings started against the Corporation before the
commencement of this section in respect of a liability of the Corporation may
be heard and determined as if this section had not been passed but any
liability of the Corporation incurred as a result of those proceedings shall
be deemed to have been incurred by the Commonwealth Bank.
(4) A certificate by the Managing Director or a person authorised in writing
by the Managing Director stating that specified property is property that
vested in the Commonwealth Bank under this section is, for all purposes and in
all legal proceedings, prima facie evidence of the matters stated in the
certificate.
(5) This section does not apply in relation to any property held by the
Corporation in respect of a superannuation fund established under section 110
or any liability incurred by the Corporation in respect of such a fund.
COMMONWEALTH BANKS ACT 1959 - SECT 8
Establishment of Commonwealth Banking Corporation Board
SECT
8. There shall be a Commonwealth Banking Corporation Board, which shall be
constituted as provided by Part III.
COMMONWEALTH BANKS ACT 1959 - SECT 9
Functions of Commonwealth Banking Corporation Board
SECT
9. (1) Subject to this Act, the Board has power to determine the policy of
the Corporation, of the Commonwealth Bank, of the Savings Bank and of the
Development Bank, in relation to any matter, and to control the affairs of the
Corporation and of each of those banks.
(2) It is the duty of the Board, within the limits of its powers, to ensure
that the policy of the Corporation, and the banking policy of the Commonwealth
Bank, of the Savings Bank and of the Development Bank, are directed to the
greatest advantage of the people of Australia and have due regard to the
stability and balanced development of the Australian economy.
(3) The Board shall, in exercising its powers, have regard to the need for
the Corporation, the Commonwealth Bank, the Savings Bank and the Development
Bank to perform economically and efficiently and to operate in accordance with
commercial principles.
COMMONWEALTH BANKS ACT 1959 - SECT 10
Delegation by Board
SECT
10. (1) The Board may, by resolution, delegate to a committee of the Board,
comprising 2 or more members of the Board, all or any of its powers or
functions under this Act, other than this power of delegation.
(2) A power or function so delegated, when exercised or performed by the
delegate, shall for the purposes of this Act be deemed to have been exercised
or performed by the Board.
(3) A delegation does not prevent the exercise of a power or performance of
a function by the Board.
COMMONWEALTH BANKS ACT 1959 - SECT 11
Differences of opinion on questions of policy
SECT
11. (1) The Board shall, from time to time, inform the Government of -
(a) any policy of the Corporation which, in the opinion of the Board,
should be made known to the Government; and
(b) the banking policy of the Commonwealth Bank, the Savings Bank and the
Development Bank.
(2) In the event of a difference of opinion between the Government and the
Board whether any policy referred to in subsection (1) is directed to the
greatest advantage of the people of Australia and has due regard to the
stability and balanced development of the Australian economy, the Treasurer
and the Board shall endeavour to reach agreement.
(2A) The Board shall, from time to time and at least once in each year,
prepare a corporate plan setting out:
(a) its objectives in relation to the operations of the Commonwealth Bank,
the Savings Bank and the Development Bank; and
(b) an outline of the policies to be pursued to achieve those objectives.
(2B) The objectives specified under paragraph (2A) (a) shall include
financial objectives, including the level of profitability and rate of return
on resources.
(2C) The Board shall give the Treasurer a copy of each corporate plan as
soon as practicable after it is prepared.
(2D) The period during which a corporate plan shall remain in effect shall
be determined by the Board in consultation with the Treasurer.
(2E) The Treasurer may, by notice in writing given to the Board within one
month after the Treasurer receives a corporate plan (or within such further
period as is agreed between the Treasurer and the Board), request the Board to
vary the plan in the manner specified in the notice.
(2F) The Board may vary a corporate plan on the request of the Treasurer or
on its own motion.
(2G) Where the Board varies a corporate plan, it shall, within one month
after making the variation (or within such further period as is agreed between
the Treasurer and the Board), notify the Treasurer in writing of the
variation.
(2H) The Treasurer may, by notice in writing given to the Board within one
month after the Treasurer receives a notice of a variation (or within such
further period as is agreed between the Treasurer and the Board), request the
Board to alter the variation in the manner specified in the notice.
(2J) In the event of a difference of opinion between the Treasurer and the
Board in relation to a corporate plan, or any variation of a corporate plan,
the Treasurer and the Board shall endeavour to reach agreement.
(3) If the Treasurer and the Board are unable to reach agreement under
subsection (2) or (2J), the Board shall forthwith furnish to the Treasurer a
statement in relation to the matter in respect of which the difference of
opinion has arisen.
(4) The Treasurer may then submit a recommendation to the Governor-General,
and the Governor-General, acting with the advice of the Federal Executive
Council, may, by order, determine the policy to be adopted by the Corporation,
the Commonwealth Bank, the Savings Bank or the Development Bank, as the case
may be, but so that the policy so determined is not inconsistent with the
Banking Act 1959, with the regulations under that Act or with the monetary and
banking policy of the Reserve Bank.
(5) The Treasurer shall inform the Board of the policy so determined and
shall at the same time inform the Board that the Government accepts
responsibility for the adoption by the Corporation, the Commonwealth Bank, the
Savings Bank or the Development Bank, as the case may be, of that policy and
will take such action (if any) within its powers as the Government considers
to be necessary by reason of the adoption of that policy.
(6) The Board shall thereupon ensure that effect is given to the policy
determined by the order and shall, if the order so requires, continue to
ensure that effect is given to that policy while the order remains in
operation.
(7) The Treasurer shall cause to be laid before each House of the
Parliament, within 15 sitting days of that House after the Treasurer has
informed the Board of the policy determined under sub-section (4) -
(a) a copy of the order determining the policy;
(b) a statement by the Government in relation to the matter in respect of
which the difference of opinion arose; and
(c) a copy of the statement furnished to the Treasurer by the Board under
sub-section (3).
COMMONWEALTH BANKS ACT 1959 - SECT 12
Management of the Corporation
SECT
12. (1) There shall be a Managing Director and a Deputy Managing Director of
the Corporation, who shall be appointed and hold office as provided by Part
III.
(2) Subject to sub-section 9 (1), the Corporation shall be managed by the
Managing Director.
(2A) In managing the Corporation, the Managing Director may exercise or
perform, on behalf of the Corporation, all or any of the powers or functions
of the Corporation other than such of those powers or functions, if any, as
are specified by the Board.
(3) The Deputy Managing Director shall perform such duties as the Managing
Director directs and, in the event of a vacancy in the office of Managing
Director, the Deputy Managing Director shall perform the duties of the
Managing Director and shall have and may exercise the powers and functions of
the Managing Director.
COMMONWEALTH BANKS ACT 1959 - SECT 12A
Delegation by the Managing Director
SECT
12A. (1) The Managing Director may, either generally or as otherwise
provided by the instrument of delegation, by instrument in writing, delegate
to an officer of the Corporation all or any of the Managing Director's powers
or functions under this Act, other than this power of delegation.
(2) A power or function so delegated, when exercised or performed by the
delegate, shall for the purposes of this Act be deemed to have been exercised
or performed by the Managing Director.
(3) A delegation does not prevent the exercise of a power or performance of
a function by the Managing Director.
COMMONWEALTH BANKS ACT 1959 - SECT 13
Managing Director and Secretary to Treasury to establish liaison
SECT
13. The Managing Director and the Secretary to the Department of the
Treasury shall establish a close liaison with each other and shall keep each
other fully informed on all matters which jointly concern the Corporation, the
Commonwealth Bank, the Savings Bank or the Development Bank and the Department
of the Treasury.
COMMONWEALTH BANKS ACT 1959 - PART III
PART III - THE COMMONWEALTH BANKING CORPORATION BOARD
COMMONWEALTH BANKS ACT 1959 - SECT 14
Membership of Board
SECT
14. (1) The Commonwealth Banking Corporation Board shall consist of -
(a) the Managing Director;
(b) the Deputy Managing Director;
(c) the Secretary to the Department of the Treasury; and
(d) 8 other members, who shall be appointed by the Governor-General in
accordance with this section.
(2) A member of the Board appointed under paragraph (1) (d) -
(a) shall be appointed for such period, not exceeding 5 years, as is
specified in the instrument of appointment but is eligible for re-appointment;
and
(b) holds office subject to good behaviour.
(5) A member of the Board appointed under paragraph (1) (d) shall be paid by
the Corporation such remuneration (if any) as is determined by the
Remuneration Tribunal.
(6) Subject to the Remuneration Tribunals Act 1973, a member of the Board
appointed under paragraph (1) (d) shall be paid by the Corporation such
allowances as are prescribed.
COMMONWEALTH BANKS ACT 1959 - SECT 15
Declaration by members
SECT
15. A member of the Board shall, before entering upon his duties or
exercising any power under this Act, make, before a Justice of the Peace or a
Commissioner for taking Affidavits, a declaration of secrecy in accordance
with the prescribed form.
COMMONWEALTH BANKS ACT 1959 - SECT 16
Disqualifications from membership
SECT
16. (1) A person who is -
(a) a member of the Reserve Bank Board appointed under paragraph 14 (1) (d)
of the Reserve Bank Act 1959;
(b) the Governor, the Deputy Governor or an officer or employee of the
Reserve Bank;
(c) an officer or an employee of the Corporation (other than the Managing
Director or the Deputy Managing Director);
(e) an officer of the Public Service of the Commonwealth (other than the
Secretary to the Department of the Treasury); or
(f) a director, officer or employee of a corporation the business of which
is wholly or mainly that of banking, is not capable of appointment, or of
continuing to act, as a member of the Board.
COMMONWEALTH BANKS ACT 1959 - SECT 17
Vacation of office
SECT
17. (1) If a member of the Board appointed under paragraph 14 (1) (d) -
(a) becomes permanently incapable of performing his duties;
(b) becomes bankrupt, applies to take the benefit of any law for the relief
of bankrupt or insolvent debtors, compounds with his creditors or makes an
assignment of his remuneration for their benefit;
(d) is absent, except on leave granted by the Board, from all meetings of
the Board held during 2 consecutive months or during any 3 months in any
period of 12 months; or
(e) fails to comply with his obligations under section 24,
the Governor-General shall terminate his appointment.
(1A) A member of the Board appointed under paragraph 14 (1) (d) may resign
by delivering to the Governor-General a signed notice of resignation.
(1B) The Board may grant leave to a member of the Board appointed under
paragraph 14 (1) (d) to be absent from a meeting of the Board upon such
conditions (including conditions relating to remuneration) as the Board thinks
fit.
(2) In this section, "month" means any of the 12 months of the year.
COMMONWEALTH BANKS ACT 1959 - SECT 18
Chairman and Deputy Chairman of the Board
SECT
18. (1) The Governor-General shall appoint one of the members of the Board
appointed under paragraph 14 (1) (d) to be Chairman of the Board, and another
such member to be Deputy Chairman of the Board, for such period as the
Governor-General determines.
(2) The Chairman or the Deputy Chairman of the Board holds office as
Chairman or Deputy Chairman until the expiration of the period of his
appointment or until he ceases to be a member of the Board, whichever first
happens.
(3) The Chairman or the Deputy Chairman of the Board may resign his office
as Chairman or Deputy Chairman by writing under his hand addressed to the
Governor-General.
COMMONWEALTH BANKS ACT 1959 - SECT 19
Meetings of Board
SECT
19. (1) The Board shall meet at such times and places as the Board
determines or as the Chairman or the Deputy Chairman directs.
(2) The Chairman shall preside at all meetings of the Board at which he is
present and, in the absence of the Chairman, the Deputy Chairman shall
preside.
(2A) Where both the Chairman and the Deputy Chairman are absent from a
meeting of the Board, a member chosen by the other members present at the
meeting shall preside.
(3) Six members form a quorum at a meeting of the Board.
(4) Questions arising at a meeting of the Board shall be decided by a
majority of the votes of the members present and voting.
(5) The member presiding at a meeting of the Board shall have a deliberative
vote and, in the event of an equality of votes, shall also have a casting
vote.
(6) Where all members entitled to vote on a proposed resolution notify the
Chairman in writing that they agree with the resolution, the resolution shall
be taken to have been passed by the Board on the day on which the Chairman
receives the last notification.
COMMONWEALTH BANKS ACT 1959 - SECT 22
Vacancies not to invalidate proceedings
SECT
22. The exercise of the rights, powers, authorities or functions, or the
performance of the duties or obligations, of the Board is not affected by
reason only of there being a vacancy in the office of a member of the Board.
COMMONWEALTH BANKS ACT 1959 - SECT 23
Deputy Secretary may attend meeting of Board
SECT
23. A Deputy Secretary in the Department of the Treasury nominated for the
purpose by the Secretary to that Department may attend a meeting of the Board
at which the Secretary is not present and, for the purposes of a meeting that
a Deputy Secretary attends pursuant to this section, the Deputy Secretary
shall, for the purposes of this Part, be deemed to be a member of the Board.
COMMONWEALTH BANKS ACT 1959 - SECT 24
Disclosure of pecuniary interests of members
SECT
24. (1) A member of the Board who has a direct or indirect pecuniary
interest -
(a) in a matter that is being considered or about to be considered by the
Board; or
(b) in a contract (other than a contract in relation to which a matter is
being considered or about to be considered by the Board) made or proposed to
be made by the Corporation, the Commonwealth Bank, the Savings Bank or the
Development Bank,
shall, as soon as possible after the relevant facts have come to his
knowledge, disclose the nature of his interest at a meeting of the Board.
(3) A disclosure under this section shall be recorded in the minutes of the
Board.
(3A) A member of the Board who has disclosed under this section a prescribed
interest in a matter that is being or is about to be considered by the Board
may, unless the Board otherwise determines, be present during any
deliberations of the Board, and take part in any decisions of the Board, with
respect to the matter.
(4) A member of the Board who has disclosed under this section an interest
other than a prescribed interest in a matter that is being or is about to be
considered by the Board shall not, unless the Board or the Treasurer otherwise
determines, be present during any deliberations of the Board, or take part in
any decision of the Board, with respect to the matter.
(5) For the purpose of the making of a determination by the Board under
subsection (3A) or (4) in relation to a member of the Board who has made a
disclosure under this section, a member of the Board who has a direct or
indirect pecuniary interest in the matter to which the disclosure relates
shall not -
(a) be present during any deliberation of the Board for the purpose of the
making of the determination; or
(b) take part in the making by the Board of the determination.
(6) This section does not apply to a pecuniary interest of a member who is a
customer of the Commonwealth Bank, the Savings Bank or the Development Bank,
being an interest that the member has as a customer and in common with other
customers.
COMMONWEALTH BANKS ACT 1959 - SECT 25
Appointment of Managing Director and Deputy Managing Director
SECT
25. (1) The Managing Director shall be appointed by the Treasurer after the
Treasurer has received a recommendation from the Board.
(2) The Deputy Managing Director shall be appointed by the Treasurer after
the Treasurer has received a recommendation from the Board.
(3) The Treasurer shall not appoint a member of the Board (other than the
holder of a statutory office) as Managing Director or Deputy Managing
Director.
(4) The appointment of a person as Managing Director or Deputy Managing
Director is not invalid merely because of a defect or irregularity in relation
to the appointment.
COMMONWEALTH BANKS ACT 1959 - SECT 26
Holding of office during Board's pleasure etc.
SECT
26. The Managing Director and Deputy Managing Director:
(a) shall be appointed with effect from the days respectively specified in
their instruments of appointment; and
(b) hold office during the Board's pleasure.
COMMONWEALTH BANKS ACT 1959 - SECT 26A
Managing Director and Deputy Managing Director hold office on
full time basis
SECT
26A. The Managing Director and Deputy Managing Director hold office on a
full time basis.
COMMONWEALTH BANKS ACT 1959 - SECT 26B
Terms and conditions of appointment not provided for by Act
SECT
26B. The Managing Director and Deputy Managing Director hold office on such
terms and conditions (including terms and conditions relating to remuneration
and allowances) in relation to matters not provided for by this Act as are
determined by the Board.
COMMONWEALTH BANKS ACT 1959 - SECT 26C
Disclosure of interests
SECT
26C. The Managing Director and Deputy Managing Director shall give written
notice to the Chairman of the Board of all direct and indirect pecuniary
interests that they have or acquire in any business or in any body corporate
carrying on any business.
COMMONWEALTH BANKS ACT 1959 - SECT 26D
Exclusion of Managing Director and Deputy Managing Director from
certain deliberations
SECT
26D. The Managing Director and Deputy Managing Director shall not be present
during any deliberation of the Board, or take part in any decision of the
Board, in relation to:
(a) the appointment of a person as Managing Director or Deputy Managing
Director;
(b) the determination or application of any terms or conditions on which
the Managing Director or Deputy Managing Director holds office; or
(c) the termination of the appointment of the Managing Director or Deputy
Managing Director.
COMMONWEALTH BANKS ACT 1959 - PART IV
PART IV - THE COMMONWEALTH BANK
COMMONWEALTH BANKS ACT 1959 - SECT 27
The Commonwealth Bank
SECT
27. The body corporate that was, immediately before the commencement of
section 8 of the Commonwealth Banks Amendment Act 1984, in existence, by
virtue of section 27 of the Commonwealth Banks Act 1959 as in force
immediately before that commencement, under the name Commonwealth Trading Bank
of Australia -
(a) is preserved and continues in existence, by force of this section, as a
body corporate, under and subject to the provisions of this Act, under the
name Commonwealth Bank of Australia, so that its corporate identity is not
affected;
(b) continues to be a body corporate;
(c) shall have a seal; and
(d) is capable of acquiring, holding and disposing of real and personal
property and of suing and being sued.
COMMONWEALTH BANKS ACT 1959 - SECT 28
General functions of Commonwealth Bank
SECT
28. (1) The Commonwealth Bank shall carry on general banking business.
(1A) The Commonwealth Bank may provide insurance services if, in the opinion
of the Board, it is necessary to do so to enable the Commonwealth Bank to
remain competitive with other banks.
(2) It is the duty of the Commonwealth Bank to develop and expand its
business.
COMMONWEALTH BANKS ACT 1959 - SECT 29
Powers of Commonwealth Bank
SECT
29. (1) The Commonwealth Bank has such powers as are necessary for the
purpose of carrying out its functions under this Act.
(2) Without limiting the generality of subsection (1), the Commonwealth Bank
has power, in addition to any other powers conferred on it by this Act:
(a) to receive money on deposit;
(b) to borrow money;
(c) to lend money;
(d) to subscribe for, buy, sell, discount, re-discount, redeem and
otherwise deal in bills of exchange, promissory notes, Treasury notes and
other securities issued by the Commonwealth, and other securities and
instruments;
(e) to buy, sell and otherwise deal in foreign exchange, foreign currency
hedging instruments, gold and other precious metals;
(f) to establish credits and engage in hire-purchase and lease financing
and factoring;
(g) to carry on (whether as principal, agent, manager, broker or otherwise)
all kinds of insurance, re-insurance, assurance, annuity guarantee and
indemnity business;
(h) to issue bills and drafts and effect transfers of money;
(j) to guarantee the due fulfilment of contracts and obligations by any
person;
(k) to act as attorney for any person;
(m) to promote, effect, guarantee, underwrite, manage and carry out:
(i) any issue of shares, stock or debenture stock of any
body corporate or association;
(ii) any issue of bonds of any description; and
(iii) any joint lending operations;
and to borrow or lend money for the purposes of any such issue or operation;
(n) to operate unit trusts;
(p) with the approval of the Treasurer, to join in the formation of
subsidiary companies;
(q) to enter into a partnership, or an arrangement for sharing of profits;
(r) to subscribe for, buy, or otherwise acquire, and to hold, sell or
otherwise deal in, shares, stocks, debenture stocks and other similar
instruments;
(s) to act as principal, agent or broker in stock and share broking and
commodity and commodity futures dealings;
(t) to be a member (whether alone or in partnership or joint venture, or as
a shareholder in a body corporate) of stock and securities exchanges and
commodity exchanges;
(u) to keep for a body corporate, association or authority any register
relating to funds, shares, stocks or other securities of the body corporate,
association or authority and to undertake any duties in relation to such
funds, shares, stocks or securities, including the registration of transfers
and the issue of certificates;
(w) to act as trustee of, and to administer:
(i) any superannuation, pension, provident or retirement
fund scheme;
(ii) any property trust; or
(iii) any other trust;
and to act as executor or administrator of the estate of a
deceased person;
(y) to furnish managerial, financial, technical and administrative advice
and services to any person and to assist a person to obtain such advice and
services;
(z) to process (whether as principal or agent) debit and credit card
arrangements;
(za) to provide facilities (whether as principal or agent) for the
merchandising of goods and services;
(zb) to provide computer hardware and software facilities;
(zc) to act as agent in the provision of financial services, including the
settlement of financial transactions;
(zd) to subscribe for, and to hold, shares in the capital of the Savings
Bank; and
(ze) to do anything incidental to any of its powers.
COMMONWEALTH BANKS ACT 1959 - SECT 30
Capital
SECT
30. The capital of the Commonwealth Bank shall be the aggregate of -
(a) the amount of the capital of the Commonwealth Trading Bank of Australia
immediately before the commencement of section 11 of the Commonwealth Banks
Amendment Act 1984;
(b) the sum of $75,000,000, which shall be paid by the Development Bank to
the Commonwealth Bank, on or before 30 June 1984, out of the Commonwealth
Development Bank Reserve Fund;
(c) such other sums as the Minister for Finance pays to the Commonwealth
Bank out of moneys appropriated by the Parliament for the purpose of providing
further capital for the Commonwealth Bank;
(ca) such other sums as are transferred from the reserves of the
Commonwealth Bank under section 30A;
(d) such other sums as are transferred from the Commonwealth Bank Reserve
Fund pursuant to sub-section 31 (2); and
(e) an amount equal to the total nominal value of the shares in the capital
of the Savings Bank held by the Commonwealth Bank.
COMMONWEALTH BANKS ACT 1959 - SECT 30A
Transfers from reserves to capital
SECT
30A. There may be transfered from the reserves of the Commonwealth Bank to
the capital of the Commonwealth Bank such sums as the Board determines.
COMMONWEALTH BANKS ACT 1959 - SECT 31
Commonwealth Bank Reserve Fund
SECT
31. (1) The Commonwealth Bank shall have a reserve fund (to be called the
Commonwealth Bank Reserve Fund), which shall consist of the aggregate of -
(a) the amount that, immediately before the commencement of section 11 of
the Commonwealth Banks Amendment Act 1984, stood to the credit of the
Commonwealth Trading Bank Reserve Fund existing under section 31 of the
Commonwealth Banks Act 1959 as in force immediately before that commencement;
and
(b) such other sums as are placed to the credit of the reserve fund
pursuant to section 33.
(2) There may be transferred from the Commonwealth Bank Reserve Fund to the
capital of the Commonwealth Bank such sums as the Board determines.
COMMONWEALTH BANKS ACT 1959 - SECT 32
Payment of dividends by Commonwealth Bank
SECT
32. (1) The Board shall, not later than 3 months after the end of each
financial year, recommend in writing to the Treasurer whether the Commonwealth
Bank should pay to the Commonwealth a dividend in respect of the operations of
the Commonwealth Bank and the Savings Bank during that year and, if so, the
amount of the dividend.
(2) In making a recommendation, the Board shall have regard to:
(a) the need to ensure that the Commonwealth receives a reasonable rate of
return on the capital and reserves of the Commonwealth Bank and the Savings
Bank;
(b) the need to increase the reserves of the Commonwealth Bank and the
Savings Bank to fund the expansion of their activities and to enable them to
comply with the capital adequacy guidelines applicable in the banking
industry; and
(c) any other relevant commercial considerations.
(3) The Treasurer shall, not later than one month after receiving a
recommendation, by notice in writing given to the Board:
(a) accept the recommendation; or
(b) specify an amount, or a different amount, to be paid by way of dividend
by the Commonwealth Bank to the Commonwealth in respect of the operations of
the Commonwealth Bank and the Savings Bank during the financial year to which
the recommendation relates.
(4) Where the Board recommends payment of an amount that is less than 45% of
the sum of:
(a) so much of the net profits of the Commonwealth Bank for the financial
year to which the recommendation relates as does not comprise dividends paid
to the Commonwealth Bank by the Savings Bank; and
(b) the net profits of the Savings Bank for that year;
the Treasurer shall not specify a different amount that is more than 45% of
the sum of those net profits.
(5) In making a decision under subsection (3), the Treasurer shall have
regard to the matters specified in subsection (2).
(6) The Commonwealth Bank shall, as soon as practicable after the Treasurer
makes a decision under subsection (3), pay to the Commonwealth an amount equal
to:
(a) where the Treasurer accepts the recommendation - the amount specified
in the recommendation; or
(b) in any other case - the amount specified by the Treasurer under
paragraph (3) (b).
COMMONWEALTH BANKS ACT 1959 - SECT 33
Crediting of amounts to Commonwealth Bank Reserve Fund
SECT
33. The Board may place to the credit of the Commonwealth Bank Reserve Fund
an amount that does not exceed so much of the net profits of the Commonwealth
Bank as has not previously been dealt with under section 32 or this section.
COMMONWEALTH BANKS ACT 1959 - SECT 35
Management of Commonwealth Bank
SECT
35. (1) The person occupying, or performing the duties of, a position in the
Service that is designated pursuant to a determination in force under
sub-section (3) shall, under the Managing Director, manage the Commonwealth
Bank, but if no such determination is in force the Managing Director shall
manage the Commonwealth Bank.
(2) The Managing Director, or a person managing the Commonwealth Bank
pursuant to sub-section (1), shall, in relation to the management of the
Commonwealth Bank, act in accordance with the policy of the Commonwealth Bank
and with the directions of the Board.
(2A) In managing the Commonwealth Bank, the Managing Director, and the
person managing the Commonwealth Bank under subsection (1), may, in accordance
with the policy of the Commonwealth Bank and the directions of the Board,
perform any function, or exercise any power, of the Commonwealth Bank on its
behalf.
(3) The Board may make a determination designating a position in the Service
for the purposes of this section and may make a determination revoking a
determination designating such a position.
COMMONWEALTH BANKS ACT 1959 - SECT 36
Commonwealth Bank to pay expenses of Corporation
SECT
36. The Commonwealth Bank shall pay all of the expenses of the Corporation.
COMMONWEALTH BANKS ACT 1959 - SECT 37
Payment for services
SECT
37. The Commonwealth Bank shall pay the Savings Bank or the Development Bank
for any services rendered by the Savings Bank or the Development Bank to the
Commonwealth Bank.
COMMONWEALTH BANKS ACT 1959 - SECT 38
Amalgamation of other banks with Commonwealth Bank
SECT
38. The Commonwealth Bank may, with the approval of the Treasurer, enter
into an arrangement with any other bank for the transfer to the Commonwealth
Bank, upon such terms and conditions as are agreed upon between the
Commonwealth Bank and that other bank, of the whole or any part of the assets,
liabilities and business of that other bank.
COMMONWEALTH BANKS ACT 1959 - PART V
PART V - THE COMMONWEALTH SAVINGS BANK
COMMONWEALTH BANKS ACT 1959 - SECT 40
The Commonwealth Savings Bank
SECT
40. Notwithstanding the repeal effected by sub-section 4 (1) of the Reserve
Bank Act 1959, the Commonwealth Savings Bank of Australia established under
the Commonwealth Bank Act 1911 and continued in existence under the
Commonwealth Bank Act 1945 -
(a) is preserved and continues in existence under and subject to the
provisions of this Act, so that the corporate identity of the Commonwealth
Savings Bank of Australia shall not be affected;
(b) continues to be a body corporate;
(c) shall have a seal; and
(d) is capable of acquiring, holding and disposing of real and personal
property and of suing and being sued.
COMMONWEALTH BANKS ACT 1959 - SECT 41
General functions of Savings Bank
SECT
41. (1) The Savings Bank shall carry on general banking business.
(1A) The Saving Bank may provide insurance services if, in the opinion of
the Board, it is necessary to do so to ensure that the Savings Bank remains
competitive with other banks.
COMMONWEALTH BANKS ACT 1959 - SECT 42
Powers of Savings Bank
SECT
42. (1) The Savings Bank has such powers as are necessary for the purpose of
carrying out its functions under this Act.
(2) Without limiting the generality of subsection (1), the Savings Bank has
power, in addition to any other powers conferred on it by this Act:
(a) to receive money on deposit;
(b) to borrow money;
(c) to lend money;
(d) to subscribe for, buy, sell, discount, re-discount, redeem and
otherwise deal in bills of exchange, promissory notes, Treasury notes and
other securities issued by the Commonwealth, and other securities and
instruments;
(e) to buy, sell and otherwise deal in foreign exchange, foreign currency
hedging instruments, gold and other precious metals;
(f) to establish credits and engage in hire-purchase and lease financing
and factoring;
(g) to carry on (whether as principal, agent, manager, broker or otherwise)
all kinds of insurance, re-insurance, assurance, annuity guarantee and
indemnity business;
(h) to issue bills and drafts and effect transfers of money;
(j) to guarantee the due fulfilment of contracts and obligations by any
person;
(k) to act as attorney for any person;
(m) to promote, effect, guarantee, underwrite, manage and carry out:
(i) any issue of shares, stock or debenture stock of any
body corporate or association;
(ii) any issue of bonds of any description; and
(iii) any joint lending operations;
and to borrow or lend money for the purposes of any such issue or operation;
(n) to operate unit trusts;
(p) with the approval of the Treasurer, to join in the formation of
subsidiary companies;
(q) to enter into a partnership, or an arrangement for sharing of profits;
(r) to subscribe for, buy, or otherwise acquire, and to hold, sell or
otherwise deal in shares, stocks, debenture stocks and other similar
instruments;
(s) to act as principal, agent or broker in stock and share broking and
commodity and commodity futures dealings;
(t) to be a member (whether alone or in partnership or joint venture, or as
a shareholder in a body corporate) of stock and securities exchanges and
commodity exchanges;
(u) to keep for a body corporate, association or authority any register
relating to funds, shares, stocks or other securities of the body corporate,
association or authority and to undertake any duties in relation to such
funds, shares, stocks or securities, including the registration of transfers
and the issue of certificates;
(w) to act as trustee of, and to administer:
(i) any superannuation, pension, provident or retirement
fund scheme;
(ii) any property trust; or
(iii) any other trust;
and to act as executor or administrator of the estate of a deceased person;
(y) to furnish managerial, financial, technical and administrative advice
and services to any person and to assist a person to obtain such advice and
services;
(z) to process (whether as principal or agent) debit and credit card
arrangements;
(za) to provide facilities (whether as principal or agent) for the
merchandising of goods and services;
(zb) to provide computer hardware and software facilities;
(zc) to act as agent in the provision of financial services, including the
settlement of financial transactions; and
(zd) to do anything incidental to any of its powers.
COMMONWEALTH BANKS ACT 1959 - SECT 42A
Share Capital
SECT
42A. (1) On and after 1 July 1984, the Savings Bank shall have a share
capital.
(2) Subject to sub-section (6), the amount of the share capital of the
Savings Bank shall be an amount equal to the aggregate of the amounts required
by sub-section (4) to be applied as mentioned in the last-mentioned
sub-section.
(3) The share capital of the Savings Bank shall be divided into shares of $1
each.
(4) As soon as practicable after 30 June 1984, the Savings Bank shall apply
-
(a) so much of the amount standing to the credit of the Commonwealth
Savings Bank Reserve Fund at the end of 30 June 1984 as exceeds $20,000,000;
(b) the amount standing to the credit of the Contingencies Reserve of the
Savings Bank at the end of 30 June 1984; and
(c) the amount standing to the credit of the Capital Reserve of the Savings
Bank at the end of 30 June 1984,
in paying up in full shares in the capital of the Savings Bank.
(5) Upon compliance by the Savings Bank with sub-section (4) -
(a) the shares in the capital of the Savings Bank paid up in full in
accordance with that sub-section shall be deemed to have been issued by the
Savings Bank to the Commonwealth Bank; and
(b) the Commonwealth Bank holds those shares as legal and beneficial
owner.
(6) The Board may, at any time after the Savings Bank has complied with
sub-section (4) -
(a) increase the share capital of the Savings Bank by a specified amount;
or
(b) cancel a specified number of shares in the capital of the Savings Bank
that are not the subject of a direction under sub-section (7) and reduce the
amount of the share capital of the Savings Bank by the amount of the shares so
cancelled.
(7) The Board may, at any time after the Savings Bank has complied with
sub-section (4), direct the Savings Bank to issue to the Commonwealth Bank a
specified number of shares in the capital of the Savings Bank, and where the
Board so directs and the Commonwealth Bank pays to the Savings Bank, as
subscription moneys in respect of the shares, an amount equal to the nominal
value of the shares -
(a) the shares shall be deemed to have been issued by the Savings Bank to
the Commonwealth Bank; and
(b) the Commonwealth Bank holds the shares as legal and beneficial owner.
(8) The Board may, at any time after the Savings Bank has complied with
sub-section (4), direct the Savings Bank to apply the whole or a specified
part of the amount standing to the credit of the Commonwealth Savings Bank
Reserve Fund in paying up in full unissued shares in the capital of the
Savings Bank, and where the Board so directs, the Savings Bank shall comply
with the direction.
(8A) The Board may direct the Savings Bank to apply the whole or a specified
part of the amount standing to the credit of a specified reserve of the
Savings Bank in paying up in full unissued shares in the capital of the
Savings Bank, and where the Board so directs, the Savings Bank shall comply
with the direction.
(9) Where the Savings Bank, pursuant to a direction given under sub-section
(8) or (8A), applies an amount in paying up in full unissued shares in the
capital of the Savings Bank -
(a) the shares shall be deemed to have been issued by the Savings Bank to
the Commonwealth Bank; and
(b) the Commonwealth Bank holds the shares as legal and beneficial owner.
(10) Shares in the capital of the Savings Bank shall not be issued except as
provided by this section.
(11) A person other than the Commonwealth Bank is not capable of holding, or
of having a beneficial interest in, shares in the capital of the Savings Bank.
COMMONWEALTH BANKS ACT 1959 - SECT 43
Reserve Fund
SECT
43. The Savings Bank shall have a reserve fund (to be called the
Commonwealth Savings Bank Reserve Fund), which shall consist of the aggregate
of -
(a) the amount standing to the credit of the Savings Bank Reserve Fund
existing under the Commonwealth Bank Act 1945 immediately before the
commencement of this Act; and
(b) such other sums as are placed to the credit of the Fund in pursuance of
section 44.
COMMONWEALTH BANKS ACT 1959 - SECT 44
Profits of Savings Bank
SECT
44. The Board may direct the Savings Bank to pay to the Commonwealth Bank by
way of dividend, or to place to the credit of the Commonwealth Savings Bank
Reserve Fund, a specified amount, being an amount that does not exceed so much
of the net profits of the Savings Bank as has not previously been dealt with
under this section, and where the Board so directs, the Savings Bank shall pay
to the Commonwealth Bank by way of dividend, or shall place to the credit of
the Commonwealth Savings Bank Reserve Fund, as the case may be, so much of
those profits as does not exceed the specified amount.
COMMONWEALTH BANKS ACT 1959 - SECT 47
Management of Savings Bank
SECT
47. (1) The person occupying, or performing the duties of, a position in the
Service designated by the Board for the purposes of this sub-section shall,
under the Managing Director, manage the Savings Bank.
(2) The Managing Director and the person managing the Savings Bank pursuant
to sub-section (1) shall, in relation to the management of the Savings Bank,
act in accordance with the policy of the Savings Bank and with the directions
of the Board.
(3) In managing the Savings Bank, the Managing Director, and the person
managing the Savings Bank under subsection (1), may, in accordance with the
policy of the Savings Bank and the directions of the Board, perform any
function, or exercise any power, of the Savings Bank on its behalf.
COMMONWEALTH BANKS ACT 1959 - SECT 48
Savings Bank to pay share of expenses of Corporation
SECT
48. The Savings Bank shall pay to the Commonwealth Bank the amount of the
expenses of the Corporation attributable to the Savings Bank.
COMMONWEALTH BANKS ACT 1959 - SECT 49
Payment for services
SECT
49. The Savings Bank shall pay the Commonwealth Bank or the Development Bank
for any services rendered by the Commonwealth Bank or the Development Bank to
the Savings Bank.
COMMONWEALTH BANKS ACT 1959 - SECT 50
Amalgamation of other banks with Commonwealth Savings Bank
SECT
50. The Savings Bank may, with the approval of the Treasurer, enter into an
arrangement with any other bank for the transfer to the Savings Bank, upon
such terms and conditions as are agreed upon between the Savings Bank and the
other bank, of the whole or any part of the assets, liabilities and business
of that other bank.
COMMONWEALTH BANKS ACT 1959 - PART VII
PART VII - THE COMMONWEALTH DEVELOPMENT BANK
COMMONWEALTH BANKS ACT 1959 - SECT 71
The Commonwealth Development Bank
SECT
71. (1) A bank, to be called the Commonwealth Development Bank of Australia,
is hereby established.
(2) The Development Bank -
(a) is a body corporate;
(b) shall have a seal; and
(c) is capable of acquiring, holding and disposing of real and personal
property and of suing and being sued.
COMMONWEALTH BANKS ACT 1959 - SECT 72
Functions of Development Bank
SECT
72. The functions of the Development Bank are -
(a) to provide finance for the purpose of establishing, acquiring or
carrying on businesses (including businesses related to primary production),
in particular small businesses, in cases where, in the opinion of the
Development Bank, the provision of finance is desirable and the finance would
not otherwise be available on reasonable and suitable terms and conditions;
(b) in accordance with policies approved by the Treasurer, to participate
in businesses of a kind referred to in paragraph (a) in cases where, in the
opinion of the Development Bank, participation is desirable and other persons
would not be prepared to participate on reasonable and suitable terms and
conditions; and
(c) to provide advice and assistance with a view to promoting the efficient
organization and conduct of businesses of a kind referred to in paragraph (a).
COMMONWEALTH BANKS ACT 1959 - SECT 73
Matters to be considered in providing finance
SECT
73. (1) In determining whether or not finance shall be provided for a
person, the Development Bank shall have regard primarily to the prospects of
the operations of that person becoming, or continuing to be, successful and
shall not necessarily have regard to the value of the security available in
respect of that finance.
(2) The Development Bank shall not provide finance for a person to enable
that person to acquire goods for use otherwise than in the course of his
business.
COMMONWEALTH BANKS ACT 1959 - SECT 74
Powers of Development Bank
SECT
74. (1) For the purpose of carrying out its functions under this Act, the
Development Bank is empowered to carry on banking business.
(2) Without limiting the generality of sub-section (1), the Development Bank
has power, in addition to any other powers conferred on it by this Act -
(a) to receive money on deposit;
(b) to borrow money;
(c) to lend money;
(d) to subscribe for, buy, sell, discount, re-discount, redeem and
otherwise deal in bills of exchange, promissory notes, Treasury notes and
other securities issued by the Commonwealth, and other securities and
instruments;
(e) to establish credits and engage in hire-purchase and lease financing
and factoring;
(f) to issue bills and drafts and effect transfers of money;
(g) to guarantee the due fulfilment of contracts and obligations by any
person or body corporate;
(h) to underwrite loans and issues of capital;
(j) to join in the formation of a company;
(k) to subscribe for, buy, or otherwise acquire, and to dispose of, shares,
stocks, debenture stocks and other securities;
(m) to enter into a partnership, or an arrangement for sharing of profits;
and
(n) to do anything incidental to any of its powers.
(3) In this section, "shares", in relation to a company, means shares in the
capital of the company, and includes stock.
COMMONWEALTH BANKS ACT 1959 - SECT 75
Capital of the Development Bank
SECT
75. The capital of the Development Bank shall be the aggregate of -
(a) the amount of the capital of the Mortgage Bank Department of the former
Commonwealth Bank immediately before the commencement of this Act;
(b) the amount of the capital of the Industrial Finance Department of the
former Commonwealth Bank immediately before the commencement of this Act;
(c) the sum of Five million pounds, which shall be paid by the Reserve Bank
to the Development Bank on the date of commencement of this Act;
(ca) the sum of Five million pounds paid by the Commonwealth to the
Development Bank;
(cb) the further sum of Five million pounds paid by the Commonwealth to the
Development Bank;
(cc) the further sum of Five million pounds paid by the Commonwealth to the
Development Bank; and
(d) such other sums as are transferred from the Commonwealth Development
Bank Reserve Fund in pursuance of section 76.
COMMONWEALTH BANKS ACT 1959 - SECT 76
Commonwealth Development Bank Reserve Fund
SECT
76. (1) The Development Bank shall have a reserve fund (to be called the
Commonwealth Development Bank Reserve Fund), which shall consist of -
(a) the amount standing to the credit of the Mortgage Bank Department
Reserve Fund existing under the Commonwealth Bank Act 1945 immediately before
the commencement of this Act;
(b) the amount standing to the credit of the Industrial Finance Department
Reserve Fund existing under the Commonwealth Bank Act 1945 immediately before
the commencement of this Act; and
(c) such other sums as are placed to the credit of the Fund in pursuance of
section 78.
(2) There may be transferred from time to time from the Commonwealth
Development Bank Reserve Fund to the capital of the Development Bank such sums
as the Board determines.
COMMONWEALTH BANKS ACT 1959 - SECT 77A
Payment of dividends by Development Bank
SECT
77A. (1) The Board shall, not later than 3 months after the end of each
financial year, recommend in writing to the Treasurer whether the Development
Bank should pay to the Commonwealth a dividend in respect of the operations of
the Development Bank during that year and, if so, the amount of the dividend.
(2) In making a recommendation, the Board shall have regard to:
(a) the need to ensure that the Commonwealth receives a reasonable rate of
return on the capital and reserves of the Development Bank;
(b) the need to maintain the reserves of the Development Bank to support
the funding requirements of small business on reasonable terms and conditions
and to ensure that the level of capital and reserves of the Development Bank
is appropriate having regard to the nature of its business; and
(c) any other relevant commercial considerations.
(3) The Treasurer shall, not later than one month after receiving the
recommendation, by notice in writing given to the Board:
(a) accept the recommendation; or
(b) specify an amount, or a different amount, to be paid by way of dividend
by the Development Bank to the Commonwealth in respect of the operations of
the Development Bank during the financial year to which the recommendation
relates.
(4) Where the Board recommends payment of an amount that is less than 45% of
the net profits of the Development Bank for the financial year to which the
recommendation relates, the Treasurer shall not specify a different amount
that is more than 45% of those net profits.
(5) In making a decision under subsection (3), the Treasurer shall have
regard to the matters specified in subsection (2).
(6) The Development Bank shall, as soon as practicable after the Treasurer
makes a decision under subsection (3), pay to the Commonwealth an amount equal
to:
(a) where the Treasurer accepts the recommendation - the amount specified
in the recommendation; or
(b) in any other case - the amount specified by the Treasurer under
paragraph (3) (b).
COMMONWEALTH BANKS ACT 1959 - SECT 78
Crediting of amounts to Commonwealth Development Bank Reserve Fund
SECT
78. The Board may place to the credit of the Commonwealth Development Bank
Reserve Fund a specified amount, being an amount that does not exceed so much
of the net profits of the Commonwealth Development Bank as has not previously
been dealt with under section 77A or this section.
COMMONWEALTH BANKS ACT 1959 - SECT 80
Management of Development Bank
SECT
80. (1) The person occupying, or performing the duties of, a position in the
Service designated by the Board for the purposes of this sub-section shall,
under the Managing Director, manage the Development Bank.
(2) The Managing Director and the person managing the Development Bank
pursuant to sub-section (1) shall, in relation to the management of the
Development Bank, act in accordance with the policy of the Development Bank
and with the directions of the Board.
(3) In managing the Development Bank, the Managing Director and the person
managing the Development Bank under subsection (1), may, in accordance with
the policy of the Development Bank and the directions of the Board, perform
any functions, or exercise any powers, of the Development Bank on its behalf.
COMMONWEALTH BANKS ACT 1959 - SECT 81
Development Bank to pay share of expenses of Corporation
SECT
81. The Development Bank shall pay to the Commonwealth Bank the amount of
the expenses of the Corporation attributable to the Development Bank.
COMMONWEALTH BANKS ACT 1959 - SECT 82
Payment for services
SECT
82. The Development Bank shall pay the Commonwealth Bank or the Savings Bank
for any services rendered by the Commonwealth Bank or the Savings Bank to the
Development Bank.
COMMONWEALTH BANKS ACT 1959 - SECT 83
Agents etc.
SECT
83. In the exercise of its powers and the performance of its functions, the
Development Bank -
(a) may establish branches and agencies at such places within Australia as
the Development Bank thinks fit;
(b) may arrange with a person to act as agent of the Development Bank in
any place, whether within or beyond Australia, and shall, on request by a bank
specified in the First Schedule to the Banking Act 1959, appoint that bank to
be an agent of the Development Bank for the receipt and transmission of
applications for the provision of finance by the Development Bank; and
(c) may act as the agent of any bank (including the Reserve Bank, the
Commonwealth Bank or the Savings Bank) carrying on business within or beyond
Australia.
COMMONWEALTH BANKS ACT 1959 - SECT 85
Loans by Treasurer
SECT
85. The Treasurer may, from time to time, out of moneys appropriated by the
Parliament for the purpose, but not otherwise, lend to, or deposit with, the
Development Bank such amounts, and subject to such terms and conditions, as
are agreed upon between the Treasurer and the Board.
COMMONWEALTH BANKS ACT 1959 - SECT 86
Interpretation
SECT
86. In this Part, "finance" includes financial assistance.
COMMONWEALTH BANKS ACT 1959 - PART VIII
PART VIII - THE COMMONWEALTH BANKING CORPORATION SERVICE
COMMONWEALTH BANKS ACT 1959 - DIVISION 1
Division 1 - Preliminary
COMMONWEALTH BANKS ACT 1959 - SECT 87
Interpretation
SECT
87. In this Part -
"superannuation rules" means rules made under sub-section 110 (2) for or in
relation to the superannuation fund established under sub-section 110 (1);
COMMONWEALTH BANKS ACT 1959 - DIVISION 2
Division 2 - Appointments
COMMONWEALTH BANKS ACT 1959 - SECT 87A
Application of merit principle, prohibition of patronage etc.
SECT
87A. The appointment, promotion and transfer of officers shall be in
accordance with procedures that preclude patronage and favouritism and ensure
that:
(a) all persons have, so far as practicable, a reasonable opportunity to
apply for appointment or be considered for, promotion or transfer, as the case
may be; and
(b) appointments, promotions and transfers are made on the basis of an
assessment of the relevant suitability of the persons considered for
appointment, promotion or transfer, as the case may be, having regard to:
(i) the nature of the duties to be performed by the
person appointed, promoted or transferred; and
(ii) the abilities, qualifications, experience and other
attributes of each person so considered that are relevant to the performance
of those duties.
COMMONWEALTH BANKS ACT 1959 - SECT 88
Appointment of officers
SECT
88. (1) The Corporation may appoint such officers as are necessary for the
purposes of this Act.
(2) The officers appointed by the Corporation constitute the Commonwealth
Banking Corporation Service.
(3) The terms and conditions of employment of officers shall be determined
by the Corporation.
COMMONWEALTH BANKS ACT 1959 - DIVISION 6
Division 6 - General
COMMONWEALTH BANKS ACT 1959 - SECT 110
Superannuation fund
SECT
110. (1) There shall be a superannuation fund of the Corporation.
(2) The Corporation may, with the approval of the Minister for Finance, make
rules, not inconsistent with this Act or the regulations, for or in relation
to the superannuation fund.
COMMONWEALTH BANKS ACT 1959 - SECT 110A
Benefits
SECT
110A. (1) The regulations may make provision for and in relation to the
payment, in such circumstances as are prescribed, to or in respect of an
officer who has been retired from the Service of a benefit, whether by way of
lump sum or otherwise, ascertained in accordance with the regulations.
(2) Where regulations made for the purposes of sub-section (1) provide for
the payment of a benefit by way of a lump sum, those regulations may provide
for the payment of different benefits by way of a lump sum to or in respect of
different classes of officers and, for the purposes of this sub-section, a
class of officers may be constituted by all or any of the officers referred to
in that subsection.
(3) The regulations -
(a) may make provision for the purpose of -
(i) enabling a person who is entitled to the payment of a
lump sum under regulations made for the purposes of sub-section (1) and who is
or becomes, in such circumstances as the regulations prescribe, entitled to
pension benefits under the superannuation rules in consequence of his
retirement to elect that, in lieu of that sum, there be paid to him benefits,
calculated in such manner as is provided for in the regulations, being pension
benefits similar to pension benefits payable under the superannuation rules;
and
(ii) enabling the payment of such a pension benefit to the
person entitled to it in association with any pension benefit payable to the
person under the superannuation rules as if it were a pension benefit so
payable;
(b) may provide for such an election to become void if the person who made
the election subsequently ceases, in such circumstances as the regulations
prescribe, to be entitled to pension benefits under the superannuation rules;
(c) may apply the superannuation rules, subject to such modifications and
adaptations as are prescribed by the regulations, to and in relation to such a
benefit; and
(d) may make such other provision, not inconsistent with this Act, as is
necessary to be made for carrying out or giving effect to the purpose
specified in paragraph (a).
(4) In sub-section (3), "modification" includes the addition or omission of
a provision or the substitution of a provision for another provision.
COMMONWEALTH BANKS ACT 1959 - PART IX
PART IX - MISCELLANEOUS
COMMONWEALTH BANKS ACT 1959 - SECT 114
Interpretation
SECT
114. In this Part, "a body to which this Part applies" means the
Corporation, the Commonwealth Bank, the Savings Bank or the Development Bank.
COMMONWEALTH BANKS ACT 1959 - SECT 116
Appointment of attorneys
SECT
116. A body to which this Part applies may, by instrument under its seal,
appoint a person (whether in Australia or in a place beyond Australia) to be
its attorney and the person so appointed may, subject to the instrument, do
any act or execute any power or function which he is authorized by the
instrument to do or execute.
COMMONWEALTH BANKS ACT 1959 - SECT 117
Guarantee by Commonwealth
SECT
117. By force of this section, the Commonwealth guarantees the due payment
by a body to which this Part applies of all moneys that are, or may at any
time become, payable by the body to a person other than the Commonwealth.
COMMONWEALTH BANKS ACT 1959 - SECT 118
Accounts and records
SECT
118. A body to which this Part applies shall:
(a) cause proper accounts and records of the transactions and affairs of
the body to be kept in accordance with the accounting principles generally
applied in commercial practice; and
(b) do all things necessary to ensure that all payments are correctly made
and properly authorised and that adequate control is maintained over the
assets of, or in the custody of, the body and over the incurring of
liabilities by the body.
COMMONWEALTH BANKS ACT 1959 - SECT 119
Taxation
SECT
119. (1) A body to which this Part applies is not liable to taxation under
any law of a State or of a Territory to which the Commonwealth is not
subject.
(2) A body to which this Part applies is not a public authority for the
purposes of paragraph 23 (d) of the Income Tax Assessment Act 1936.
(3) Stamp duty or other tax under a law of the Commonwealth is not payable
in respect of the vesting of an asset of the Corporation in the Commonwealth
Bank under section 7A.
(4) The Income Tax Assessment Act 1936 applies in relation to the
Commonwealth Bank with respect to any property that becomes vested in the
Commonwealth Bank under section 7A as if the Commonwealth Bank were the
Corporation.
COMMONWEALTH BANKS ACT 1959 - SECT 120
Audit
SECT
120. (1) The Auditor-General shall inspect and audit the accounts and
records of financial transactions of a body to which this Part applies, and
shall forthwith draw the Treasurer's attention to any irregularity revealed by
the inspection and audit that, in the opinion of the Auditor-General, is of
sufficient importance to justify his so doing.
(2) The Auditor-General shall, at least once in each year, report to the
Treasurer the results of the inspection and audit carried out under
sub-section (1).
(3) The Auditor-General or an officer authorized by him is entitled at all
reasonable times to full and free access to all accounts, records, documents
and papers of a body to which this Part applies relating directly or
indirectly to the receipt or payment of moneys by that body or to the
acquisition, receipt, custody or disposal of property of the body.
(4) The Auditor-General or an officer authorized by him may make copies of
or take extracts from any such accounts, records, documents or papers.
(5) The Auditor-General or an officer authorized by him may require a
prescribed person to furnish him with such information in the possession of
the prescribed person or to which the prescribed person has access as the
Auditor-General or authorized officer considers necessary for the purposes of
an inspection or audit under this Act, and the prescribed person shall comply
with the requirement.
(6) In sub-section (5), "prescribed person" means the Managing Director, the
Deputy Managing Director, any other member of the Board or an officer.
COMMONWEALTH BANKS ACT 1959 - SECT 121
Annual reports and financial statements
SECT
121. (1) The Board shall, as soon as practicable after each 30 June, in
respect of each body to which this Part applies, prepare -
(a) a report on the operations of that body during the year ending on that
day; and
(b) financial statements, in accordance with the regulations, in respect of
that year,
and furnish that report and those statements, together with a report of the
Auditor-General upon those statements, to the Treasurer.
(1A) Section 121A does not, by implication, limit the power to prescribe
requirements for financial statements by reference to requirements for
accounts prescribed under the Companies Act 1981.
(2) The Auditor-General, in his report upon the financial statements
prepared in pursuance of sub-section (1) in respect of a body to which this
Part applies -
(a) shall report whether the statements are in agreement with the accounts
and records of that body and show fairly the financial operations and the
state of the affairs of the body; and
(b) shall report on such other matters arising out of the statements as the
Auditor-General considers should be made known to the Parliament.
(3) The Board shall transmit true copies of each report and financial
statement prepared in pursuance of sub-section (1), and of the report of the
Auditor-General upon each such statement, to the President of the Senate and
to the Speaker of the House of Representatives to be laid before the Senate
and the House of Representatives respectively.
COMMONWEALTH BANKS ACT 1959 - SECT 121A
Information relating to remuneration of Managing Director and
Deputy Managing Director
SECT
121A. (1) The financial statements of the Corporation shall comply with the
requirements prescribed under the Companies Act 1981 for the accounts of a
listed corporation so far as those requirements relate to the income of
executive officers of a listed corporation.
(2) For the purposes of subsection (1):
(a) the Corporation shall be taken to be a listed corporation; and
(b) the Managing Director and Deputy Managing Director shall be taken to be
executive officers of the Corporation.
(3) Expressions used in this section that are also used in the Companies Act
1981 have the same respective meanings as they have in that Act.
COMMONWEALTH BANKS ACT 1959 - SECT 122
Returns
SECT
122. A body to which this Part applies shall furnish to the Treasurer such
periodical statements as are prescribed.
COMMONWEALTH BANKS ACT 1959 - SECT 123
Power to improve property and carry on business
SECT
123. Where the Commonwealth Bank, the Savings Bank or the Development Bank
holds any property (whether real or personal) or business as security for a
loan or advance, and the property or business falls into the hands of the
Commonwealth Bank, the Savings Bank or the Development Bank, the Commonwealth
Bank, the Savings Bank or the Development Bank may maintain, repair or improve
the property, or carry on the business, until the Commonwealth Bank, the
Savings Bank or the Development Bank can, in its discretion, dispose of the
property or business in the best interests of the Commonwealth Bank, the
Savings Bank or the Development Bank.
COMMONWEALTH BANKS ACT 1959 - SECT 124
Execution of contracts
SECT
124. (1) Contracts on behalf of a body to which this Part applies may be
made, varied or discharged in accordance with the succeeding provisions of
this section, and all contracts so made are effectual in law, and are binding
upon that body and on all other parties to the contract, their heirs, assigns,
executors or administrators, as the case may be.
(2) A contract which, if made between private persons, would be by law
required to be in writing under seal may be made, varied or discharged, in the
name and on behalf of a body to which this Part applies, in writing under the
seal of that body.
(3) A contract which, if made between private persons, would be by law
required to be in writing and signed by the parties to be charged therewith
may be made, varied or discharged, in the name and on behalf of a body to
which this Part applies, in writing signed by any person acting under the
express or implied authority of that body.
(4) A contract which, if made between private persons, would by law be
valid, although made by parol only and not reduced into writing, may be made,
varied or discharged by parol, in the name and on behalf of a body to which
this Part applies, by a person acting under the express or implied authority
of that body.
(5) Nothing in this section invalidates a contract executed on behalf of a
body to which this Part applies by a duly appointed attorney if the contract
would be valid if executed by the attorney on his own behalf.
COMMONWEALTH BANKS ACT 1959 - SECT 124A
Affixing of seals
SECT
124A. (1) Where the seal of a body to which this Part applies is affixed to
a document, the Managing Director, or any person authorised by the Managing
Director, may sign the document as witness to the affixing of the seal.
(2) A person dealing with a body to which this Part applies is entitled to
assume that the seal of that body has been duly affixed to a document that
bears what appears to be an impression of that seal and that appears to have
been signed by a person described as the Managing Director, or a person
authorised by the Managing Director, as witness to the affixing of the seal.
(3) This section shall not be taken to affect the operation of any other law
of the Commonwealth or of a State or Territory relating to the execution of
documents by bodies corporate.
COMMONWEALTH BANKS ACT 1959 - SECT 124B
Persons dealing with bodies
SECT
124B. A person dealing with a body to which this Part applies is entitled to
assume that an exercise of a power, or the performance of a function, by the
Managing Director, or any person managing the body, is in accordance with the
policy of the body and the directions of the Board.
COMMONWEALTH BANKS ACT 1959 - SECT 125
Judicial notice of seals
SECT
125. All courts, judges and persons acting judicially shall take judicial
notice of the seal of a body to which this Part applies affixed to a document
and shall presume that it was duly affixed.
COMMONWEALTH BANKS ACT 1959 - SECT 126
Investment of trust moneys
SECT
126. A trustee, executor or administrator may invest any trust moneys in his
hands on deposit with the Commonwealth Bank, the Savings Bank or the
Development Bank.
COMMONWEALTH BANKS ACT 1959 - SECT 127
Validity of acts and transactions
SECT
127. The validity of an act or transaction of a body to which this Part
applies shall not be called in question in any legal proceedings on the ground
that any provision of this Act has not been complied with.
COMMONWEALTH BANKS ACT 1959 - SECT 129
Regulations
SECT
129. The Governor-General may make regulations, not inconsistent with this
Act, prescribing all matters which by this Act are required or permitted to be
prescribed, or which are necessary or convenient to be prescribed for carrying
out or giving effect to this Act or for the conduct of business by the
Corporation, the Commonwealth Bank, the Savings Bank or the Development Bank
and, in particular -
(e) prescribing penalties not exceeding $100 for offences against the
regulations.