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Commonwealth Banks Act 1959

  • - C2004C02846
  • In force - Superseded Version
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Act No. 5 of 1959 as amended, taking into account amendments up to Act No. 193 of 1992
Registered 24 Nov 2009
Start Date 05 Feb 1993
End Date 21 Oct 1993

COMMONWEALTH BANKS ACT 1959
- Reprinted as at 31 March 1993 (HISTACT CHAP 1057 #DATE 31:03:1993)

*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 Date Date of Application
Number and of assent commencement saving or
year 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,
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) (b) -
Commonwealth Banks Amendment Act 1984
76, 1984 25 June 1984 29 June 1984 (see
Gazette 1984, No.
S241) 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, No. S399)
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, 2),
ss. 3, 26, 29-33, 35,
38 and 40: Royal Assent
Remainder: 28 Dec 1989
(see Gazette 1989, No. S383)
Ss. 42 (2)
and 43
Commonwealth Banks Restructuring Act 1990
118, 1990 28 Dec 1990 S. 6: Royal Assent (c)
Ss. 7, 8 (2), 19, 36
and 58 (1): (c)
Ss. 8 (1), 10 (b), 16, 43,
46 and 47: (c)
Ss. 8 (3) and 21: (c)
Ss. 8 (4), 22-24, 27-34,
41, 42, 50-52, 54-57,
58 (2) and 59-61: (c)
Ss. 8 (5), 9, 10 (a),
12-15, 17, 18, 35, 40, 44,
48 (a) and 49: (c)
Ss. 8 (6), 11 and
53 (2): (c)
Ss. 10 (c) and 35A: 3 May
1991 (see Gazette 1991,
No. S114)
S. 20: (c)
Ss. 25 (1) and 37-39: (c)
Ss. 25 (2) and 26: (c)
S. 48 (b) and (c): (c)
S. 53 (1): 2 Jan 1993 (see
Gazette 1992, No. GN45)
Ss. 2 (4), 28
(2), 39 (2),
60 and 61
Bank Integration Act 1991
210, 1991 24 Dec 1991 24 Dec 1991 Ss. 30-32 (d)
Banking Legislation Amendment Act 1992
193, 1992 21 Dec 1992 Part 3 (ss. 19-21):
5 Feb 1993 (see Gazette
1993, No. GN4) (e)
S. 2 (6)
(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, subsections 5 (2) and 7 (2), (5),
(6) and (7), sections 8, 9, 10, 11, 12, 13, 16, 17, 18 and 19,
subsections 21 (1) and 37 (5), sections 38, 43 and 44,
subsection 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."
(c) The Commonwealth Banks Act 1959 was amended by sections 6-61
only of the Commonwealth Banks Restructuring Act 1990,
subsections 2 (1)-(3) of which provide as follows:

"(1) Sections 1, 2, 3, 4, 5 and 6 commence on the day on which
this Act receives the Royal Assent.

"(2) The amendments made by paragraph 48 (b) and (c) come into
operation at the time when the first guidelines under section 6
of the Superannuation Benefits (Supervisory Mechanisms) Act 1990
come into force in relation to the fund referred to in section
110 of the amended Act.

"(3) Each of the remaining provisions of this Act commences on
a day, or at a time, fixed by Proclamation in relation to the
provisions concerned."

In pursuance of section 2 the following dates were fixed:

S. 48 (b) and (c): 17 April 1991 (on commencement of s. 22 of
the Commonwealth Banks Restructuring Act 1990).

Sections 8 (1), 10 (b), 16, 43, 46 and 47: The end of that
completion date (see Gazette 1990, No. S346). The completion
date was 31 December 1990 (see Victorian Government Gazette, No.
S73, 31 December 1990).

Sections 7, 8 (2), 19, 36 and 58 (1): The beginning of the day
immediately following that completion date (see Gazette 1990,
No. S346). The completion date was 31 December 1990 (see
Victorian Government Gazette, No. S73, 31 December 1990).
(a) Sections 25 (1) and 37-39: The beginning of 28 March 1991
(see Gazette 1991, No. S72).
(b) Sections 8 (3) and 21: The beginning of 2 April 1991 (see
Gazette 1991, No. S72).
(c) Sections 25 (2) and 26: The beginning of 6 April 1991 (see
Gazette 1991, No. S72).
(d) Sections 8 (4), 22-24, 27-34, 41, 42, 50-52, 54-57, 58 (2)
and 59-61: The beginning of 17 April 1991 (see Gazette 1991, No.
S72).
(e) Section 20: Immediately after the beginning of 17 April
1991 (see Gazette 1991, No. S72).
(f) Sections 8 (5), 9, 10 (a), 12-15, 17, 18, 35, 40, 44, 48
(a) and 49: Immediately after the commencement of section 20.
(g) Sections 8 (6), 11 and 53 (2): Immediately after the time
referred to in paragraph (f).

Paragraph 10 (c) and section 35A: 3 May 1991 (see Gazette
1991, No. S114).
(d) "32. On the succession day for the Commonwealth Bank and
the Commonwealth Savings Bank, the Acts referred to in Schedule
3 are amended as set out in that Schedule."

The succession day was 1 January 1993 (see Gazette 1992, No.
GN36).
(e) The Commonwealth Banks Act 1959 was amended by Part 3
(sections 19-21) only of the Banking Legislation Amendment Act
1992, subsection 2 (5) of which provides as follows:

"(5) Part 3 commences on a day to be fixed by Proclamation."
Table of Amendments
ad=added or inserted am=amended rep=repealed rs=repealed and substituted
Provision affected How affected
Title am. No. 76, 1984
rs. No. 118, 1990
S. 3 rep. No. 117, 1973
S. 4 am. No. 117, 1973
rs. No. 76, 1984
am. No. 118, 1990; No. 210, 1991
S. 5 rs. No. 117, 1973
am. No. 182, 1987
S. 5A ad. No. 117, 1973
am. No. 29, 1981
rep. No. 182, 1987
Heading to Part II rs. No. 118, 1990
S. 7 am. No. 76, 1984; No. 118, 1990
Renumbered S. 108 No. 118, 1990
S. 7A ad. No. 182, 1987
Renumbered S. 109 No. 118, 1990
S. 8 rs. No. 118, 1990
Ss. 8A, 8B ad. No. 118, 1990
S. 9 am. No. 76, 1984;
No. 182, 1987; No. 118, 1990; No. 210, 1991
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; No. 118, 1990; No. 210, 1991
S. 12 am. No. 117, 1973; No. 29, 1981; No. 182, 1987
rep. No. 118, 1990
S. 12A ad. No. 182, 1987
am. No. 118, 1990
S. 13 am. No. 76, 1984; No. 118, 1990; No. 210, 1991
Part III (Ss. 14-19,
22-26, 26A-26D) rep. No. 118, 1990
S. 14 am. No S. 117 and 216, 1973; No. 81, 1974;
No. 29, 1981; No. 182, 1987; No. 123, 1988
rep. No. 118, 1990
S. 15 am. No. 182, 1987
rep. No. 118, 1990
S. 16 am. No. 58, 1966; No. 117, 1973; No. 29, 1981;
No. 76, 1984; No. 182, 1987
rep. No. 118, 1990
S. 17 am. No. 117, 1973; No. 29, 1981; No. 182, 1987
rep. No. 118, 1990
S. 18 am. No. 117, 1973; No. 29, 1981
rep. No. 118, 1990
S. 19 am. No. 182, 1987
rep. No. 118, 1990
Ss. 20, 21 am. No. 29, 1981
rep. No. 76, 1984
S. 22 am. No. 76, 1984
rep. No. 118, 1990
S. 23 rs. No. 76, 1984
rep. No. 118, 1990
S. 24 rs. No. 29, 1981
am. No. 76, 1984; No. 182, 1987
rep. No. 118, 1990
S. 25 am. No. 144, 1968; No. 81, 1974; No. 29, 1981
rs. No. 123, 1988
rep. No. 118, 1990
S. 26 am. No. 182, 1987
rs. No. 123, 1988
rep. No. 118, 1990
Ss. 26A-26D ad. No. 123, 1988
rep. No. 118, 1990
Heading to Part IV am. No. 76, 1984
Heading to Div. 1A of
Part IV ad. No. 118, 1990
rep. No. 118, 1990
Div. 1A of Part IV
(s. 27) rep. No. 118, 1990
S. 27 am. No. 117, 1973; No. 29, 1981
rs. No. 76, 1984
rep. No. 118, 1990
Div. 1 of Part IV
(ss. 27A-27C) ad. No. 118, 1990
Ss. 27A-27C ad. No. 118, 1990
Div. 2 of Part IV
(ss. 27D-27J) ad. No. 118, 1990
Ss. 27D-27J ad. No. 118, 1990
Div. 3 of Part IV
(ss. 27K, 27L) ad. No. 118, 1990
Ss. 27K, 27L ad. No. 118, 1990
Heading to Div. 4 of
Part IV ad. No. 118, 1990
S. 28 am. No. 76, 1984; No. 182, 1987; No. 118, 1990
S. 29 am. No. 29, 1981; No. 76, 1984; No. 182, 1987
rep. No. 118, 1990
S. 30 am. No. 29, 1981
rs. No. 76, 1984
am. No. 129, 1989; No. 118, 1990
rep. No. 118, 1990
S. 30A ad. No. 129, 1989
rep. No. 118, 1990
S. 31 am. No. 29, 1981
rs. No. 76, 1984
am. No. 129, 1989
rep. No. 118, 1990
S. 32 rs. No. 76, 1984; No. 182, 1987;
No. 118, 1990; No. 193, 1992
S. 33 am. No. 144, 1968; No. 81, 1974; No. 29, 1981
rep. No. 76, 1984
ad. No. 129, 1989
rep. No. 118, 1990
S. 34 rep. No. 76, 1984
S. 35 rs. No. 76, 1984
am. No. 182, 1987
rep. No. 118, 1990
S. 36 rs. No. 76, 1984; No. 182, 1987
rep. No. 118, 1990
Ss. 37, 38 am. No. 76, 1984
rep. No. 118, 1990
S. 39 am. No. 76, 1984
rep. No. 182, 1987
Part V (Ss. 40-42, 42A,
43, 44 and 47) rep. No. 210, 1991
S. 40 am. No. 117, 1973; No. 29, 1981
rep. No. 210, 1991
S. 41 am. No. 182, 1987; No. 129, 1989
rep. No. 210, 1991
S. 42 am. No. 29, 1981; No. 76, 1984; No. 182, 1987
rep. No. 210, 1991
S. 42A ad. No. 76, 1984
am. No. 129, 1989
rep. No. 210, 1991
S. 43 am. No. 29, 1981
rep. No. 210, 1991
S. 44 rs. No. 76, 1984
am. No. 118, 1990
rep. No. 210, 1991
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; No. 118, 1990
rep. No. 210, 1991
S. 48 am. No. 182, 1987
rep. No. 118, 1990
S. 49 am. No. 76, 1984
rep. No. 118, 1990
S. 50 am. No. 129, 1989
rep. No. 118, 1990
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
rep. 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. 74A ad. No. 118, 1990
S. 75 am. No. 75, 1961; No. 3, 1962; No. 57, 1963;
No. 29, 1981; No. 76, 1984
rep. No. 118, 1990
S. 76 am. No. 29, 1981; No. 129, 1989; No. 118, 1990
S. 77 rep. No. 129, 1989
S. 77A ad. No. 182, 1987
rs. No. 118, 1990
S. 78 am. No. 144, 1968; No. 81, 1974; No. 29, 1981
rep. No. 76, 1984
ad. No. 129, 1989
rep. No. 118, 1990
S. 79 rep. No. 76, 1984
S. 80 rs. No. 76, 1984
am. No. 182, 1987; No. 118, 1990
S. 81 am. No. 182, 1987
rep. No. 118, 1990
S. 82 am. No. 76, 1984
rep. No. 118, 1990
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
Heading to Part VIII rs. No. 118, 1990
Heading to Div. 1 of
Part VIII rep. No. 118, 1990
S. 87 am. No. 117, 1973; No. 29, 1981; No. 182, 1987
rep. No. 118, 1990
Heading to Div. 2 of
Part VIII am. No. 182, 1987
rep. No. 118, 1990
S. 87A ad. No. 182, 1987
S. 88 rs. No. 182, 1987; No. 118, 1990
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
Heading to Div. 6 of
Part VIII rep. No. 118, 1990
S. 110 am. No. 36, 1978; No. 118, 1990
S. 110A ad. No. 29, 1981
am. No. 182, 1987
rep. No. 118, 1990
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
rs. No. 118, 1990
am. No. 210, 1991
S. 115 rep. No. 182, 1987
S. 116 am. No. 118, 1990
S. 117 rs. No. 76, 1984
S. 118 am. No. 76, 1984
rs. No. 182, 1987; No. 118, 1990
S. 119 am. No. 117, 1973; No. 29, 1981
rs. No. 76, 1984
am. No. 182, 1987; No. 118, 1990
S. 120 am. No. 29, 1981; No. 76, 1984
rep. No. 118, 1990
S. 121 am. No. 117, 1973; No. 29, 1981; No. 129, 1989
rep. No. 118, 1990
S. 121A ad. No. 123, 1988
rep. No. 118, 1990
S. 122 rep. No. 118, 1990
S. 123 am. No. 76, 1984; No. 118, 1990; No. 210, 1991
S. 124 am. No. 118, 1990
S. 124A ad. No. 182, 1987
am. No. 118, 1990
S. 124B ad. No. 182, 1987
S. 126 am. No. 76, 1984; No. 210, 1991
S. 128 am. No. 216, 1973
rep. No. 194, 1985
ad. No. 118, 1990
am. No. 118, 1990; No. 193, 1992
S. 129 am. No. 93, 1966; No. 29, 1981; No. 76, 1984;
No. 182, 1987; No. 118, 1990; No. 210, 1991

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 BANK BOARD AND MANAGING DIRECTOR
8. Powers and functions of the Commonwealth Bank Board
and Managing Director
8A. Treasurer's nominee on Board
8B. Confidentiality of information obtained by the
Treasurer's nominee on the Board
9. Functions of Board
10. Delegation by Board
11. Differences of opinion on questions of policy
12A. Delegation by the Managing Director
13. Managing Director and Secretary to Treasury to
establish Liaison
PART IV - THE COMMONWEALTH BANK
Division 1 - Preliminary Steps before Conversion of
Commonwealth Bank into a Public Company
27A. Share capital of Commonwealth Bank
27B. Shares to be paid up and issued
27C. Commonwealth Bank to apply to be registered as company
etc.
Division 2 - Conversion of Commonwealth Bank into
a Public Company
27D. Commonwealth Bank taken to be registered under
Companies Act
27E. Memorandum and articles of Commonwealth Bank
27F. Membership of the Commonwealth Bank
27G. Application of certain provisions of Companies Act
27H. Commonwealth Bank not a public authority etc.
27J. Operation of section 25B of Acts Interpretation Act
Division 3 - Restriction on Issue etc. of Shares in
Commonwealth Bank
27K. Foreign persons not to apply for issue of shares in
the Commonwealth Bank
27L. Commonwealth to retain ownership and control of the
Commonwealth Bank
Division 4 - Miscellaneous
28. General functions of Commonwealth Bank
32. Declaration of dividends
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
74A. Share capital
76. Commonwealth Development Bank Reserve Fund
77A. Profits of Development Bank
80. Management of Development Bank
83. Agents etc.
85. Loans by Treasurer
86. Interpretation
PART VIII - THE COMMONWEALTH BANKS SERVICE
87A. Application of merit principle, prohibition of
patronage etc.
88. Appointment of officers
108. Commonwealth Bank Officers Superannuation Corporation
109. Assets and liabilities of the Corporation
110. Superannuation fund
PART IX - MISCELLANEOUS
114. Interpretation
116. Appointment of attorneys
117. Guarantee by Commonwealth
118. Application of Part VI of the Companies Act
119. Taxation
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
128. Use of certain names
129. Regulations

COMMONWEALTH BANKS ACT 1959 - LONG TITLE

SECT

An Act relating to the constitution and operations of the
Commonwealth banks

COMMONWEALTH BANKS ACT 1959 - PART 1
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. *2* In this Act, unless the contrary intention appears:
"articles" means articles of association;
"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 Board of Directors of the Commonwealth Bank;
"Commonwealth Bank" means the Commonwealth Bank of Australia;
"conversion time" means the commencement of section 22 of the Commonwealth Banks Restructuring Act 1990;
"Corporation" means the Commonwealth Bank Officers Superannuation Corporation;
"Development Bank" means the Commonwealth Development Bank of Australia;
"Managing Director" means the Managing Director of the Commonwealth Bank;
"memorandum" means memorandum of association;
"net profits" means operating profits (after provision for income tax) according to the accounts;
"officer" means an officer of the Service;
"pre-conversion time" means the commencement of section 21 of the Commonwealth Banks Restructuring Act 1990;
"Reserve Bank" means the Reserve Bank of Australia;
"Securities Commission" means:
(a) before the date prescribed for the purposes of paragraph (b) - the National Companies and Securities Commission; or
(b) on and after the date prescribed for the purposes of this paragraph - the Australian Securities Commission;
"Service" means the Commonwealth Banks Service referred to in section 88;
"share", in relation to a body corporate, means a share in the share capital of the body corporate. *2*. S. 4 - Section 32 of the Bank Integration Act 1991 provides as follows:
"Section 4 (definition of Banks):
Omit ', the Savings Bank'."
The proposed amendment was misdescribed and is not incorporated in this reprint.

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 BANK BOARD AND MANAGING
DIRECTOR

COMMONWEALTH BANKS ACT 1959 - SECT 8
Powers and functions of the Commonwealth Bank Board and Managing
Director

SECT

8. The powers and functions conferred on the Board and Managing Director by or under this Act are additional to those conferred by the memorandum and articles of the Commonwealth Bank.

COMMONWEALTH BANKS ACT 1959 - SECT 8A
Treasurer's nominee on Board

SECT

8A. (1) The Secretary to the Department of the Treasury:
(a) by force of this section, is a member of the Board; and
(b) in addition to his or her functions as a director, has the function of representing the views of the Treasurer.

(2) The Secretary to the Department of the Treasury may, by signed writing, delegate all or any of his or her powers or functions under or in relation to this section or section 8B to an officer of the Department of the Treasury.

COMMONWEALTH BANKS ACT 1959 - SECT 8B
Confidentiality of information obtained by the Treasurer's
nominee on the Board

SECT

8B. (1) The Treasurer's nominee may, in the course of his or her official duties:
(a) divulge or communicate protected information to the Treasurer or to a Commonwealth officer; or
(b) make a record of protected information.

(2) Except as authorised by subsection (1), the Treasurer's nominee must not:
(a) divulge or communicate protected information to any person; or
(b) make a record of protected information.

(3) Subject to subsection (4), a person to whom protected information has been divulged or communicated under subsection (1) or (4) must not:
(a) divulge or communicate the information to any person; or
(b) make a record of the information.

(4) A person to whom protected information has been divulged or communicated under subsection (1) or this subsection may, in the course of his or her official duties:
(a) divulge or communicate the information to the Treasurer or to a Commonwealth officer; or
(b) make a record of the information.

(5) In this section:
"protected information" means information obtained by the Treasurer's nominee in the course of performing functions as the Treasurer's nominee;
"Treasurer's nominee" means the person who for the time being is a member of the Board because of paragraph 8A (1) (a);
"Commonwealth officer" has the meaning given by section 3 of the Crimes Act 1914 for the purposes of section 70 of that Act.

COMMONWEALTH BANKS ACT 1959 - SECT 9
Functions of Board

SECT

9. (1) Subject to this Act, the Board has power to determine the policy of the Development Bank, in relation to any matter, and to control the affairs of that banks.

(2) It is the duty of the Board, within the limits of its powers, to ensure that the banking policies of the Commonwealth Bank and 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 Commonwealth Bank and the Development Bank to perform economically and efficiently and to operate in accordance with commercial principles.

(4) Subject to this Act, the duties of the Board include the duties (whether to shareholders or other persons) that apply under the Companies Act 1981 and under any other relevant law.

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 Commonwealth Bank which, in the opinion of the Board, should be made known to the Government; and
(b) the banking policy of the Commonwealth 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 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.

(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 Commonwealth 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 Commonwealth 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 subsection (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 subsection (3).

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 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 Commonwealth Bank or the Development Bank and the Department of the Treasury.

COMMONWEALTH BANKS ACT 1959 - PART IV
PART IV - THE COMMONWEALTH BANK

COMMONWEALTH BANKS ACT 1959 - DIVISION 1
Division 1 - Preliminary Steps before Conversion of
Commonwealth Bank into a Public Company

COMMONWEALTH BANKS ACT 1959 - SECT 27A
Share capital of Commonwealth Bank

SECT

27A. (1) As from the pre-conversion time, the Commonwealth Bank is to have a share capital divided into shares of $2 each or such other amount as is prescribed.

(2) The amount of the share capital is equal to the amount required to be applied under section 27B in paying up shares in the Commonwealth Bank.

(3) The share capital may be divided into classes of shares.

(4) Rights may be attached to shares included in a class of shares.

(5) As from the conversion time, this section has effect subject to the Companies Act 1981.

COMMONWEALTH BANKS ACT 1959 - SECT 27B
Shares to be paid up and issued

SECT

27B. (1) As soon as practicable after the pre-conversion time, the Commonwealth Bank must apply its capital, calculated immediately before the pre-conversion time, in paying up in full shares in the Commonwealth Bank.

(2) If the amount of the capital is not a multiple of the nominal value of a share, subsection (1) applies as if the amount were reduced to the nearest multiple of the nominal value of a share.

(3) As soon as practicable after complying with subsection (1), the Commonwealth Bank must issue to the Commonwealth all the shares paid up under that subsection.

(4) The shares issued under subsection (3) are to be taken to have been issued for valuable consideration other than cash.

(5) The Commonwealth is not a member of Commonwealth Bank at any time before the conversion time merely because the Commonwealth holds shares in Commonwealth Bank.

COMMONWEALTH BANKS ACT 1959 - SECT 27C
Commonwealth Bank to apply to be registered as company etc.

SECT

27C. (1) The Commonwealth Bank must, before the conversion time:
(a) apply to the Securities Commission under subsection 85 (1) of the Companies Act 1981 to be registered as a company limited by shares within the meaning of that Act; and
(b) apply to the Securities Commission under subsection 55 (1) of the Companies Act 1981 for the reservation of the name "Commonwealth Bank of Australia"; and
(c) lodge with the Securities Commission a proposed memorandum, and proposed articles, for the Commonwealth Bank; and
(d) if the rights attached to shares included in a class of shares under subsection 27A (4) are not provided for in the memorandum or articles, lodge with the Securities Commission the statement referred to in subsection 124 (1) of the Companies Act 1981.

(2) Subject to the regulations, the application mentioned in paragraph (1) (a) must be accompanied by the documents required by subsection 85 (4) of the Companies Act 1981 to accompany such an application.

(3) The applications mentioned in paragraphs (1) (a) and (b) must be made to the Securities Commission by delivering them to the office of the Corporate Affairs Commission for the Australian Capital Territory and the documents mentioned in paragraphs (1) (c) and (d) and subsection (2) must be lodged with the Securities Commission by lodging them at that office.

(4) The Commonwealth Bank is to be taken to be entitled to make the applications referred to in paragraphs (1) (a) and (b), and to lodge the documents mentioned in paragraphs (1) (c) and (d) and subsection (2).

(5) The Securities Commission is to be taken:
(a) to have been required to reserve the name "Commonwealth Bank of Australia" under subsection 55 (2) of the Companies Act 1981; and
(b) to have so reserved that name immediately after the making of the application mentioned in paragraph (1) (b).

COMMONWEALTH BANKS ACT 1959 - DIVISION 2
Division 2 - Conversion of Commonwealth Bank into a
Public Company

COMMONWEALTH BANKS ACT 1959 - SECT 27D
Commonwealth Bank taken to be registered under Companies Act

SECT

27D. (1) The Securities Commission is to be taken:
(a) to have been required to grant the application mentioned in paragraph 27C (1) (a) and to register the Commonwealth Bank as a company under subsection 86 (2) of the Companies Act 1981; and
(b) to have granted the application at the conversion time; and
(c) to have so registered the Commonwealth Bank, at the conversion time:
(i) by the name "Commonwealth Bank of Australia"; and
(ii) in accordance with subsections 86 (3) and (4) of the
Companies Act 1981, as a public company, and as a company limited by shares, within the meaning of that Act; and
(d) to have registered the name "Commonwealth Bank of Australia" in relation to the Commonwealth Bank at the conversion time, under subsection 55 (4) of the Companies Act 1981.

(2) The date of commencement of the Commonwealth Bank's registration as a company under Division 4 of Part III of the Companies Act 1981 is to be taken to be the day on which the conversion time occurs.

(3) For the purposes of Division 4 of Part III of the Companies Act 1981, the Commonwealth Bank shall be taken to have been on the day before the conversion time, and to be at the conversion time, a corporation within the meaning of that Act.

COMMONWEALTH BANKS ACT 1959 - SECT 27E
Memorandum and articles of Commonwealth Bank

SECT

27E. (1) As from the conversion time, the proposed memorandum, and the proposed articles, lodged under paragraph 27C (1) (c):
(a) are respectively the memorandum, and the articles, of the Commonwealth Bank; and
(b) bind the Commonwealth Bank and its members accordingly.

(2) As from the conversion time, the Companies Act 1981 applies in relation to the Commonwealth Bank's memorandum and articles as if they had been registered as such under that Act.

COMMONWEALTH BANKS ACT 1959 - SECT 27F
Membership of the Commonwealth Bank

SECT

27F. The Commonwealth:
(a) by force of this subsection, becomes a member of the Commonwealth Bank at the conversion time; and
(b) in relation to membership of the Commonwealth Bank:
(i) is entitled to the same rights, privileges and benefits;
and
(ii) is subject to the same duties, liabilities and
obligations;
as if the Commonwealth had become a member of the Commonwealth Bank under the Commonwealth Bank's memorandum and articles.

COMMONWEALTH BANKS ACT 1959 - SECT 27G
Application of certain provisions of Companies Act

SECT

27G. (1) Where all the shares in the Commonwealth Bank are beneficially owned by the Commonwealth, subsection 82 (1) and paragraph 364 (1) (d) of the Companies Act 1981 do not apply in relation to the Commonwealth Bank and subsection 244 (6) of that Act applies as if:
(a) the Commonwealth were a holding company, within the meaning of that subsection, of the Commonwealth Bank; and
(b) the Commonwealth held the whole of the issued shares in the Commonwealth Bank; and
(c) the Treasurer were a representative of the Commonwealth authorised under subsection 244 (3) of that Act.

(2) Subsection 39 (1), paragraph 86 (6) (b) and subsection 87 (4) of the Companies Act 1981 do not apply in relation to the Commonwealth Bank.

COMMONWEALTH BANKS ACT 1959 - SECT 27H
Commonwealth Bank not a public authority etc.

SECT

27H. The Commonwealth Bank, as it exists after the conversion time, is to be taken for the purposes of a law of the Commonwealth or a State or Territory:
(a) not to have been incorporated or established for a public purpose or for a purpose of the Commonwealth; and
(b) not to be a public authority or an instrumentality or agency of the Crown; and
(c) without limiting the generality of paragraphs (a) and (b), not to be a public authority under the Commonwealth for the purposes of the Crimes Act 1914;
except so far as express provision is made by a law of the Commonwealth, State or Territory, as the case may be.

COMMONWEALTH BANKS ACT 1959 - SECT 27J
Operation of section 25B of Acts Interpretation Act

SECT

27J. Nothing in this Act or in the Companies Act 1981 affects, or is affected by, section 25B of the Acts Interpretation Act 1901 as that section applies in relation to the Commonwealth Bank.

COMMONWEALTH BANKS ACT 1959 - DIVISION 3
Division 3 - Restriction on Issue etc. of Shares in
Commonwealth Bank

COMMONWEALTH BANKS ACT 1959 - SECT 27K
Foreign persons not to apply for issue of shares in the
Commonwealth Bank

SECT

27K. (1) A person must not (whether as principal or agent), either within or outside Australia, apply to the Commonwealth Bank, or to any agent or underwriter, for the issue of shares in the Commonwealth Bank to:
(a) if the applicant is a foreign person - the applicant or any other foreign person; or
(b) if the applicant is not a foreign person - any foreign person.

(2) Subsection (1) applies only in respect of the issue of shares by the Commonwealth Bank under its first registered prospectus.

(3) Subject to the regulations, subsection (1) does not apply to an application made by a person in the capacity of trustee, or manager, of a fund in which, at the time the application is made, the total interests (if any) of all foreign persons represent not more than 40% of the total interests in the fund.

(4) Subsection (1) has effect subject to such exceptions or modifications (if any) as are prescribed.

(5) A person who contravenes subsection (1) is guilty of an offence punishable on conviction by a fine not exceeding $50,000.

(6) An offence against this section is an indictable offence but may be heard and determined, with the consent of the prosecutor and the defendant, by a court of summary jurisdiction.

(7) If an offence is dealt with by a court of summary jurisdiction, the penalty that the court may impose is a fine not exceeding $10,000.

(8) Subject to subsection (9), in proceedings for an offence against subsection (5), it is a defence if the defendant proves that, at all relevant times, the defendant was not aware, and could not have been reasonably expected to be aware, of a fact the existence of which was necessary to constitute the offence.

(9) For the purposes of subsection (8), a person is to be conclusively presumed to have been aware at a particular time of a fact of which a servant or agent of the person (being a servant or agent having duties or acting on behalf of the master or principal in relation to any matter relevant to this section) was aware at that time.

(10) Proceedings for an offence against this section must not be instituted without the consent in writing of the Treasurer.

(11) The issue of shares is not affected by the fact that the application for the issue was made in contravention of this section.

(12) In this section:
"foreign person" has the meaning given by section 5 of the Foreign Acquisitions and Takeovers Act 1975.

COMMONWEALTH BANKS ACT 1959 - SECT 27L
Commonwealth to retain ownership and control of the Commonwealth
Bank

SECT

27L. (1) The Commonwealth must not transfer any of its shares in the Commonwealth Bank.

(2) Neither the Commonwealth nor the Commonwealth Bank is allowed to do anything to cause or contribute to either of the following results:
(a) that the Commonwealth no longer holds shares in the Commonwealth Bank that carry the rights to exercise at least 70% of the total voting rights attached to the voting shares in the Commonwealth Bank;
(b) that the Commonwealth no longer controls the exercise of at least 70% of the total voting rights attached to the voting shares in the Commonwealth Bank.

(3) The following are examples of things that could give rise to a breach of subsection (2):
(a) the issue by the Commonwealth Bank of shares in the Commonwealth Bank to a person other than the Commonwealth;
(b) an alteration in the voting rights attached to voting shares in the Commonwealth Bank.

(4) If, at any time, the Commonwealth Bank becomes aware that the situation described in paragraph (2) (a) or (b) exists, the Commonwealth Bank must, not later than 2 months after becoming aware, take all reasonable steps within its power to stop that situation existing.

(5) A contravention of this section does not affect the validity of any act or transaction involved in the contravention.

(6) In this section, "voting shares" has the same meaning as in the Banks (Shareholdings) Act 1972 .

COMMONWEALTH BANKS ACT 1959 - DIVISION 4
Division 4 - Miscellaneous

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.

(2) This section is not intended to imply any restriction on the functions or powers that may be conferred on the Commonwealth Bank otherwise than under this section.

COMMONWEALTH BANKS ACT 1959 - SECT 32
Declaration of dividends

SECT

32. (1) Before declaring a dividend to be paid to shareholders in the Commonwealth Bank, the Board must notify the Treasurer, in writing, of the proposed amount of the dividend.

(2) The Treasurer must, not later than 14 days after being notified of the proposed amount of the dividend:
(a) accept the proposed amount of the dividend; or
(b) vary the proposed amount of the dividend by specifying an amount of dividend that does not exceed 45% of the consolidated profit (excluding abnormal items of a capital nature and extraordinary items and after income tax expense), according to the relevant accounts, of the Commonwealth Bank and all its subsidiaries.

(3) Before making a decision under paragraph (2) (b), the Treasurer must:
(a) try to reach agreement with the Board; and
(b) take into consideration the reasons for the Board's proposed amount of dividend.

(4) If the Treasurer varies the proposed amount of dividend, the Board must declare a dividend of the same amount as the amount specified by the Treasurer.

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 subsection (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 74A
Share capital

SECT

74A. (1) From the commencement of this section, the Development Bank is to have a share capital.

(2) Subject to subsection (6), the amount of the share capital of the Development Bank is equal to the aggregate of the amounts required to be applied under subsection (4) in paying up shares in the capital of the Development Bank.

(3) The share capital of the Development Bank is to be divided into shares of $1 each.

(4) As soon as practicable after the commencement of this section, the Development Bank must apply its capital, calculated immediately before the commencement of this section, in paying up in full shares in the capital of the Development Bank.

(5) Upon compliance by the Development Bank with subsection (4):
(a) the shares in the capital of the Development Bank paid up in full in accordance with that subsection are taken to have been issued by the Development 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 Development Bank has complied with subsection (4):
(a) increase the share capital of the Development Bank by a specified amount; or
(b) cancel a specified number of shares in the capital of the Development Bank that are not the subject of a direction under subsection (7) and reduce the amount of the share capital of the Development Bank by the amount of the shares so cancelled.

(7) The Board may, at any time after the Development Bank has complied with subsection (4), direct the Development Bank to issue to the Commonwealth Bank a specified number of shares in the capital of the Development Bank and, where the Board so directs and the Commonwealth Bank pays to the Development Bank, as subscription moneys in respect of the shares, an amount equal to the nominal value of the shares:
(a) the shares shall be taken to have been issued by the Development 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 Development Bank has complied with subsection (4), direct the Development Bank to apply the whole or a specified part of the amount standing to the credit of the Commonwealth Development Bank Reserve Fund in paying up in full unissued shares in the capital of the Development Bank and, where the Board so directs, the Development Bank must comply with the direction.

(9) The Board may direct the Development Bank to apply the whole or a specified part of the amount standing to the credit of a specified reserve of the Development Bank in paying up in full unissued shares in the capital of the Development Bank, and where the Board so directs, the Development Bank must comply with the direction.

(10) Where the Development Bank, in complying with a direction under subsection (8) or (9), applies an amount in paying up in full unissued shares in the capital of the Development Bank:
(a) the shares are taken to have been issued by the Development Bank to the Commonwealth Bank; and
(b) the Commonwealth Bank holds the shares as legal and beneficial owner.

(11) Shares in the capital of the Development Bank must not be issued except as provided by this section.

(12) 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 Development Bank.

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 77A.

COMMONWEALTH BANKS ACT 1959 - SECT 77A
Profits of Development Bank

SECT

77A. (1) The Board may direct the Development Bank:
(a) to pay to the Commonwealth Bank by way of dividend; or
(b) to place to the credit of the Commonwealth Development Bank Reserve Fund;
a specified amount that does not exceed so much of the net profits of the Development Bank as has not previously been dealt with under this section, and the Development Bank must comply with the direction.

(2) In exercising its powers under this section, the Board must take into account the requirements of section 32.

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 a determination in force under subsection (4) shall, under the Managing Director, manage the Development Bank, but if no such determination is in force the Managing Director shall manage the Development Bank.

(2) The Managing Director and any other person managing the Development Bank pursuant to subsection (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 any other 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.

(4) The Board may make a determination designating a position in the Service for the purposes of this section and may revoke such a determination.

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 BANKS SERVICE

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 Commonwealth Bank may appoint such officers as are necessary for the purposes of this Act.

(2) The officers appointed by the Commonwealth Bank constitute the Commonwealth Banks Service.

(3) The terms and conditions of employment of officers is to be determined by the Commonwealth Bank.

COMMONWEALTH BANKS ACT 1959 - SECT 108
Commonwealth Bank Officers Superannuation Corporation

SECT

108. (1) There shall be a Commonwealth Bank Officers Superannuation 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) Subject to section 110, the function of the Corporation is to conduct a superannuation fund for officers of the Service.

(4) Subject to the rules in force from time to time under section 110, the Corporation is to be managed by the Managing Director.

COMMONWEALTH BANKS ACT 1959 - SECT 109
Assets and liabilities of the Corporation

SECT

109. (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 110
Superannuation fund

SECT

110. (1) There shall be a superannuation fund of the Corporation.

(2) Subject to this section, the rules of the superannuation fund, as in force immediately before the commencement of this subsection, continue in force.

(3) Subject to this section, the Commonwealth Bank may amend the rules, or make new rules in relation to the superannuation fund.

(4) The Commonwealth Bank may determine in writing that, on and after a date specified in the determination, its power to make or amend rules is, in whole or in part, to be exercised as specified in the determination.

(5) Supervisory Mechanisms Guidelines may be made, and have effect, in relation to the superannuation fund despite anything in subsection 5 (1), (2), (7), (8), (10) or (11) of the Superannuation Benefits (Supervisory Mechanisms) Act 1990 .

(6) The power to amend the rules or make new rules is subject to any provision in the Supervisory Mechanisms Guidelines dealing with the question of how, or by whom, the rules may be made or amended.

(7) In this section:
"Supervisory Mechanisms Guidelines" means guidelines under section 6 of the Superannuation Benefits (Supervisory Mechanisms) Act 1990.

COMMONWEALTH BANKS ACT 1959 - PART IX
PART IX - MISCELLANEOUS

COMMONWEALTH BANKS ACT 1959 - SECT 114
Interpretation

SECT

114. In this Part:
"body to which this Part applies" means the Commonwealth Bank, the Corporation or the Development Bank;
"subsidiary bank" means the Development Bank.

COMMONWEALTH BANKS ACT 1959 - SECT 116
Appointment of attorneys

SECT

116. A body to which this Part applies (other than the Commonwealth Bank) 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
Application of Part VI of the Companies Act

SECT

118. (1) Subject to this section, Part VI of the Companies Act 1981 applies to a subsidiary bank as if the bank were a public company incorporated in the Australian Capital Territory.

(2) In the application of Part VI of the Companies Act 1981 to a subsidiary bank:
(a) references to the directors of the bank are to be read as references to the person managing the bank; and
(b) references to an annual general meeting of the bank are to be read as references to an annual general meeting of the Commonwealth Bank; and
(c) references to the persons entitled to receive notice of a general meeting of the bank are to be read as references to the Commonwealth Bank.

(3) The Commonwealth Bank must, in respect of itself and each subsidiary bank, transmit to the President of the Senate and the Speaker of the House of Representatives, to be laid before the Senate and the House of Representatives respectively, true copies of all the documents referred to in section 274 of the Companies Act 1981.

(4) The documents must be transmitted within 14 days after the relevant annual general meeting of the Commonwealth Bank.

(5) The Auditor-General is to be regarded as having been appointed under section 280 of the Companies Act 1981 as auditor of the Commonwealth Bank and each subsidiary bank, with effect from the conversion time.

(6) Sections 281 and 282 of the Companies Act 1981 do not apply in relation to the Commonwealth Bank or a subsidiary bank.

(7) Nothing done, or omitted to be done, by the Auditor-General for the purposes of this section makes the Auditor-General liable to be prosecuted for an offence.

COMMONWEALTH BANKS ACT 1959 - SECT 119
Taxation

SECT

119.

(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 109.

(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 109 as if the Commonwealth Bank were the Corporation.

COMMONWEALTH BANKS ACT 1959 - SECT 123
Power to improve property and carry on business

SECT

123. Where the 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 the Development Bank, the the Development Bank may maintain, repair or improve the property, or carry on the business, until the Development Bank can, in its discretion, dispose of the property or business in the best interests of the 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 (other than the Commonwealth Bank) 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 (other than the Commonwealth Bank), 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 (other than the Commonwealth Bank), 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 (other than the Commonwealth Bank), 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 (other than the Commonwealth Bank) 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 (other than the Commonwealth Bank) 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 (other than the Commonwealth Bank) 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 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 128
Use of certain names

SECT

128. (1) The Commonwealth Bank may operate under a protected name in a State or Territory even if the name is not registered in relation to the Commonwealth Bank under a particular law, or any law, in force in the State or Territory.

(2) This section does not prevent the Commonwealth Bank from:
(a) operating in a State or Territory under a name other than a protected name; or
(b) registering a name under a law of a State or Territory.

(2A) Until the expiration of 2 months after the conversion time, each protected name is to be regarded as the name of the Commonwealth Bank for the purposes of subsection 218 (1) of the Companies Act 1981.

(3) Except with the consent in writing of the Commonwealth Bank, a person other than the Commonwealth Bank must not:
(a) use in relation to a business, trade, profession or occupation; or
(b) use as the name, or as part of the name, of any firm, body corporate, institution, premises, vehicle, ship or craft (including aircraft); or
(c) apply, as a trade mark or otherwise, to goods imported, manufactured, produced, sold, offered for sale or let for hire; or
(d) use in relation to:
(i) goods or services; or
(ii) the promotion, by any means, of the supply or use of
goods or services;
a protected name, or a name so closely resembling a protected name as to be likely to be mistaken for it.
Penalty: $3,000.

(4) Nothing in subsection (3), so far as it applies in relation to a particular protected name, affects rights conferred by law on a person in relation to:
(a) a trade mark that is registered under the Trade Marks Act 1955; or
(b) a design that is registered under the Designs Act 1906 and was so registered at the time this section commenced to have effect in relation to that name.

(5) Nothing in subsection (3), so far as it applies in relation to a particular protected name, affects the use, or rights conferred by law relating to the use, of a name (in this subsection called the "previously used name") by a person in a particular manner if, at the time this section first commenced to have effect in relation to the protected name, the person:
(a) was using the previously used name in good faith in that manner; or
(b) would have been entitled to prevent another person from passing off, by means of the use of the previously used name or a similar name, goods or services as goods or services of the first-mentioned person.

(6) In this section:
"operate under a protected name", in relation to a particular State or Territory, includes engaging in conduct that, for the purposes of a law in force in the State or Territory, constitutes:
(a) using the name in the State or Territory; or
(b) establishing a place of business under the name in the State or Territory; or
(c) carrying on business under the name in the State or Territory;
"protected name" means any of the following names:
(a) State Bank of Victoria;
(b) State Bank Victoria;
(c) SBV;
(d) Commonwealth Bank of Australia;
(e) Commonwealth Bank;
(f) Commonwealth Savings Bank of Australia;
(g) Commonwealth Savings Bank;
(h) CSB.

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 Development Bank and, in particular:
(e) prescribing penalties not exceeding $100 for offences against the regulations.