Commonwealth Authorities and Companies Act. Australia
keep the responsible Minister informed of the operations of the authority and its subsidiaries; and
(b) give the responsible Minister such reports, documents and information in relation to those operations as the responsible Minister requires; and
(c) give the Finance Minister such reports, documents and information in relation to those operations as the Finance Minister requires.
(2) The directors must comply with requirements under paragraphs (1)(b) and (c) within the time limits set by the Minister concerned.
17 Corporate plan for GBE
(1) This section applies to a Commonwealth authority that is a GBE.
(2) The directors must prepare a corporate plan at least once a year and give it to the responsible Minister.
(3) The plan must cover a period of at least 3 years.
(4) If the Commonwealth authority has subsidiaries, the plan must cover both the authority and its subsidiaries. In particular, for each subsidiary the plan must include details of the matters specified in the regulations for the purposes of subsection (6), so far as they are applicable.
(5) The directors must keep the responsible Minister informed about:
(a) significant changes to the plan; and
(b) matters that arise that might significantly affect the achievement of the objectives in the plan.
(6) The plan must include details of matters (so far as they are applicable) specified in the regulations for the purposes of this subsection.
(7) The plan must also cover any other matters required by the responsible Minister (which may include further details about the matters specified in the regulations for the purposes of subsection (6)).
(8) The responsible Minister may give written guidelines to the directors that are to be used by the directors in deciding which matters are covered by subsection (5).
Division 3
Banking, investment etc.
18 Banking and investment (authorities other than GBEs and SMAs)
(1) This section applies to a Commonwealth authority that is not a GBE or SMA.
(2) The authority must pay all money received by it into an account maintained by it with a bank.
(3) The authority may invest surplus money:
(a) on deposit with a bank; or
(b) in securities of the Commonwealth or of a State or Territory; or
(c) in securities guaranteed by the Commonwealth, a State or a Territory; or
(d) in any other manner approved by the Finance Minister.
(4) A provision in the authority’s enabling legislation to the effect that the authority must not enter into a contract involving the expenditure or payment of more than a specified amount of money without the approval of a specified person does not apply to a contract for the investment of money under subsection (3), unless the provision expressly states that it applies to such a contract.
(5) In this section:
surplus money means money of the authority that is not immediately required for the purposes of the authority.
19 Banking and investment (GBEs and SMAs)
(1) This section applies to a Commonwealth authority that is a GBE or SMA.
(2) The authority must pay all money received by it into an account maintained by it with a bank.
(3) The authority may invest surplus money:
(a) on deposit with any bank; or
(b) in securities of the Commonwealth or of a State or Territory; or
(c) in securities guaranteed by the Commonwealth, a State or a Territory; or
(d) in any other manner that is consistent with sound commercial practice.
(4) A provision in the authority’s enabling legislation to the effect that the authority must not enter into a contract involving the expenditure or payment of more than a specified amount of money without the approval of a specified person does not apply to a contract for the investment of money under subsection (3), unless the provision expressly states that it applies to such a contract.
(5) In this section:
surplus money means money of the authority that is not immediately required for the purposes of the authority.
20 Accounting records
(1) A Commonwealth authority must keep accounting records that properly record and explain its transactions and financial position and must keep those records in a way that:
(a) enables the preparation of the financial statements required by this Act; and
(b) allows those financial statements to be conveniently and properly audited in accordance with this Act.
(2) The authority must retain the records for at least 7 years after completion of the transactions to which they relate.
(3) The authority must make the records available at all reasonable times for inspection by any director of the authority.
(4) An officer of the authority contravenes this subsection if the officer:
(a) causes subsection (1), (2) or (3) to be contravened; or
(b) fails to take all reasonable steps to comply with, or secure compliance with, subsection (1), (2) or (3).
Note: This subsection is a civil penalty provision (see Schedule 2).
(5) An officer of the authority commits an offence if the officer contravenes subsection (4) and the contravention is dishonest.
Penalty for a contravention of this subsection: 2,000 penalty units or imprisonment for 5 years, or both.
Division 4
Conduct of officers
21 Background to duties of directors, other officers and employees
(1) This Part sets out some of the most significant duties of officers and employees of Commonwealth authorities. Other duties are imposed by other provisions of this Act and other laws (including the general law).
(2) Section 5 defines both director and officer.
Subdivision A
General duties
22 Care and diligence — civil obligation only
Care and diligence — officers
(1) An officer of a Commonwealth authority must exercise his or her powers and discharge his or her duties with the degree of care and diligence that a reasonable person would exercise if he or she:
(a) were an officer of a Commonwealth authority in the Commonwealth authority’s circumstances; and
(b) occupied the office held by, and had the same responsibilities within the Commonwealth authority as, the officer.
Note: This subsection is a civil penalty provision (see Schedule 2).
Business judgment rule
(2) An officer of a Commonwealth authority who makes a business judgment is taken to meet the requirements of subsection (1), and their equivalent duties under the general law, in respect of the judgment if he or she:
(a) makes the judgment in good faith for a proper purpose; and
(b) does not have a material personal