Source: http://www.legislation.nsw.gov.au/fullhtml/inforce/act+134+1989+pt.3-div.2-sec.20l+0+N
Timestamp: 2013-05-23 23:32:01
Document Index: 660789090

Matched Legal Cases: ['art 1', 'art 2', 'art 4', 'art 3', 'art 3', 'art 3', 'art.20', 'art\n3', 'art 4', 'art.22', 'art 3', 'art 3', 'art 4', 'art 5', 'art 4', 'art 7', 'art 4', 'art 5', 'art 4', 'art 4', 'art 5', 'art 5', 'art 5', 'art 4', 'art 7', 'art 1', 'art 2', 'art 3', 'art 1', 'art 2', 'art 3', 'art 4']

Current version for 1 January 2013 to date (accessed 24 May 2013 at 09:32).
Premier, except section 37B; section 37B, Minister for Finance and
6 Authorisation to participate in formation of
7B Inter-relationship with Corporations
10A Authority for Minister to act for and on behalf of a
20HA Authority for Minister to act for and on behalf of a
20O Power of portfolio Minister to notify board of public
20P Power of portfolio Minister to give directions in public
20X Acquisition and disposal of assets, investments and
Division 3 Legal capacity and powers of statutory
20ZD Persons having dealings with statutory SOCs or
24 Annual reports and financial reports: company
24A Annual reports and financial reports: statutory
30 Application of this Part to corporations with no
33A Duties and liabilities of directors and other
33AA Liability of directors and other officers in respect of
35A Application of Public
37A Modification of Environmental Planning and Assessment Act
1979 in its application to certain proposals
37B Establishment of Ministerial Holding
An Act to provide for the establishment and operation of
Government enterprises as State owned corporations.Part 1 Preliminary1 Name of ActThis Act may be cited as the State Owned Corporations Act
documents.board means the
board of directors of a State owned corporation or of any of its
subsidiaries.company State owned
SOC means a company for the time being specified in Schedule
1.constitution for a SOC or
subsidiary means:(a) in relation to a company SOC—the constitution of that
company within the meaning of the Corporations Act
(b) in relation to a statutory SOC—the constitution of the SOC
referred to in section 20Q, or
(c) in relation to a subsidiary that is a company within the meaning
Commonwealth—the constitution of the company within the meaning of that
(d) in relation to a subsidiary that is not a company—the
subsidiary’s charter or memorandum and articles of
Ministers means:(a) in relation to a company SOC or proposed company SOC or any of its
subsidiaries—the Treasurer and 4 or more other Ministers for the time
being nominated by the Premier as being eligible to hold shares in the SOC,
(b) in relation to a statutory SOC or proposed statutory SOC or any of
its subsidiaries—the Treasurer and another Minister for the time being
nominated by the Premier as a voting shareholder of the
charter of a statutory SOC means the Act by which the name of the
SOC is inserted in Schedule 5, or some other Act specified by an Act as its
foundation charter, and includes any replacement Act.government
entity means:(a) a State department, administrative office, instrumentality,
agency, authority or entity, that is not a corporation, or
(b) a division, branch or other part of such a department, office,
instrumentality, agency, authority or entity.
liabilities means liabilities,
debts and obligations (whether present or future and whether vested or
contingent).portfolio
Minister—see section 20I.rights means
whether vested or contingent).State
owned corporation or SOC means a company for the time being
specified in Schedule 1 or a corporation for the time being specified in
Schedule 5.statutory State owned
corporation or statutory SOC means a
corporation for the time being specified in Schedule 5.subsidiary means a body
corporate that is a subsidiary of a State owned corporation as determined in
accordance with the Corporations Act
2001 of the Commonwealth, and (in relation to a statutory SOC)
includes a body corporate that would be such a subsidiary if the statutory SOC
were a company SOC.the State
includes the Crown in right of New South Wales and the Government of New South
Wales.voting
shareholders means:(a) in relation to a company SOC or any of its subsidiaries—the
Treasurer and one of the other eligible Ministers who is for the time being
nominated by the Premier as a voting shareholder of the SOC, in their
capacities as shareholders in the SOC, or
(b) in relation to a statutory SOC or any of its
subsidiaries—the shareholders of the SOC as referred to in section 20H,
in their capacities as shareholders in the SOC.
Act.3A Classes of State owned corporationsThere are two classes of State owned corporations, as
follows:(a) company State owned corporations (or company
SOCs),
(b) statutory State owned corporations (or statutory
Part 2 Company SOCsDivision 1 Establishment of company SOCs4 Establishment of company SOCsA company limited by shares becomes a company SOC by the insertion
of its name in Schedule 1 by an Act of Parliament.5 Change or removal of name of company(1) The regulations under this Act may amend Schedule 1 to reflect a
change of name of a company.(2) The name of a company may not be removed from Schedule 1 except by
an Act of Parliament.6 Authorisation to participate in formation of
companiesAny eligible Minister may, for the purposes of this Act,
participate in the formation of, or acquire shares in, a company limited by
shares, in anticipation of the establishment of a company
SOC.7 Transfer of assets and liabilities etc(1) Assets, rights and liabilities of the State or an authority of the
State and forming part of or relating to an undertaking carried on by or under
the authority of a Minister, Department or Administrative Office, or under the
executive authority of the State, may be transferred to a company SOC or any
of its subsidiaries, in exchange for the issue of shares or on any other
basis.(2) The regulations under this Act may make provision for or with
respect to the transfer of any such assets, rights and liabilities to a
company SOC or any of its subsidiaries.(3) The regulations under this Act may provide that references in any
Act, or in any regulation or other statutory rule under any Act, or in any
other instrument, or in any contract or agreement, to:(a) the State or an authority of the State, in connection with any
such assets, rights or liabilities or in connection with any such undertaking,
(b) (without limiting the above) a Minister, a Department, an
Administrative Office or an officer or employee of a Department or
are to be read as references to a company SOC or any of its subsidiaries
or to a director, officer or employee of any such SOC or
subsidiary.(4) This section does not apply to assets, rights and liabilities of a
statutory corporation unless:(a) the assets, rights and liabilities can be transferred to the State
owned corporation apart from this section, or
(b) an Act of Parliament provides that this section applies to the
assets, rights and liabilities of the statutory
7A Ministerial directionFor the purposes of or incidental to the transfer from an
authority to a company SOC, a subsidiary of a company SOC or any other person
of any assets, rights or liabilities under this Act or under the Act by which
the name of the company SOC is inserted in Schedule 1, the authority is, in
the exercise of its functions, subject to the control and direction of the
Minister.7B Inter-relationship with Corporations
legislation(1) The regulations may declare any matter relating to a company SOC
that is dealt with by this Act or the regulations to be an excluded matter for
the purposes of section 5F of the Corporations Act
2001 of the Commonwealth in relation to:(a) the whole of the Corporations legislation, or
to that matter in the State concerned.(2) In this section:matter
includes act, omission, body, person or thing.Division 2 Provisions relating to company SOCs8 Principal objectives of company SOCs(1) The principal objectives of every company SOC are:(a) to be a successful business and, to this end:(i) to operate at least as efficiently as any comparable businesses,
SOC, and
(2) Each of the principal objectives of a company SOC is of equal
importance.9 Status of company SOCsA company SOC or any of its subsidiaries:(a) is not and does not represent the State except by express
agreement with the voting shareholders of the SOC, and
(b) is not exempt from any rate, tax, duty or other impost imposed by
or under any law of the State merely because it is a company SOC,
(c) cannot render the State liable for any debts, liabilities or
obligations of the SOC or any of its subsidiaries,
provides.10 Directors(1) The directors of a company SOC are to be persons who, in the
opinion of those appointing them, will assist the SOC to achieve its principal
objectives.(2) The board is accountable to the voting shareholders in the manner
set out in Part 4 and in the constitution of the
SOC.10A Authority for Minister to act for and on behalf of a
voting shareholder(1) A voting shareholder of a company SOC may authorise any Minister
to act for and on behalf of the voting shareholder in his or her capacity as a
voting shareholder while he or she is unavailable (by reason of his or her
absence or disability or for any other reason).(2) If a Minister is authorised under this section to act for and on
behalf of a voting shareholder, any function of a voting shareholder may,
while the authority remains in force, be exercised from time to time by the
Minister instead of by that voting shareholder. However, the Minister
authorised under this section may not exercise the function of authorising
another Minister under this section.(3) Any act, matter or thing done or omitted to be done by a Minister
while acting for or on behalf of a voting shareholder pursuant to an authority
under this section is to be as valid and have the same consequences as if the
act, matter or thing had been done or omitted to be done by that voting
shareholder.(4) A Minister who purports to act for or on behalf of a voting
shareholder is presumed, until the contrary is proved, to be authorised under
this section.(5) An authority under this section may be revoked by the voting
shareholder who granted it, or by the Premier.(6) An authority under this section operates until:(a) the end of the term specified in the authority,
(c) the voting shareholder who granted the authority ceases to be a
voting shareholder, or
(d) by virtue of this or any other Act, the Minister authorised under
the authority becomes a person who cannot be a voting shareholder of the
company SOC,
whichever occurs first.(7) In the constitution of the company SOC of which the Minister is a
voting shareholder, and in any Act or instrument, a reference to a voting
shareholder under this Act includes a reference to any Minister who is acting
for or on behalf of a voting shareholder pursuant to an authority under this
section.(8) A Minister may be authorised under this section by reference to
his or her name or by reference to the title of the office that he or she
holds as Minister.(9) An authority under this section must be in writing, signed by the
voting shareholder who granted it.(10) The revocation of an authority under this section must be in
writing, signed by the voting shareholder who granted the authority or by the
Premier.(11) Notice of an authority under this section, or of the revocation of
such a notice is so published, judicial notice is to be taken of the notice
be.(12) Every authority under this section must be recorded by the
Minister administering this Act.(13) The following Ministers may not be authorised under this
section:(a) the Treasurer, or
(b) a Minister who is also a voting shareholder of the same company
SOC, or
(c) a Minister who, by virtue of this or any other Act, cannot be a
voting shareholder of the company SOC.
(14) Any act, matter or thing done or omitted to be done by a Minister
under this section is declared to be an excluded matter for the purposes of
section 5F of the Corporations Act
Corporations legislation.Note. This subsection ensures that neither the Corporations Act 2001 nor Part 3 of the
Act 2001 of the Commonwealth will apply in relation to the
matters specified. Section 5F of the Corporations
Act 2001 of the Commonwealth provides that if a State law
declares a matter to be an excluded matter in relation to that Act or Part,
then the provisions of that Act or Part will not apply in relation to that
matter in the State concerned.(15) This section does not affect the operation of section 36 or 37 of
1902.(16) In this section, a reference to a function of a
voting shareholder includes a reference to any function of a voting
shareholder whether conferred or imposed:(a) by the constitution of the company SOC, or
(b) by the terms, express or implied, of this or any other Act or of
any instrument under this or any other Act, or
and to any other function that is incidental to any such
function.11 Non-commercial activities(1) If a Minister wishes a company SOC to perform activities, or to
cease to perform activities, or not to perform activities, in circumstances
where the board considers that it is not in the commercial interests of the
SOC to do so, that Minister with the approval of the Treasurer may, by written
notice to the board, direct the SOC to do so in accordance with any
requirements set out or referred to in the notice.(2) The SOC is required to comply with any such
direction.(3) The SOC is entitled to be reimbursed, from money advanced by the
Treasurer or appropriated by Parliament for the purpose, amounts equal
to:(a) the net cost of performing any such activities, including the cost
(b) the net cost of complying with a direction to cease to perform or
not to perform any such activities.
(4) The amounts and times of payment of those amounts are as agreed
between the Treasurer and the SOC or (failing agreement) as determined by a
suitably qualified person or persons nominated by the
Premier.(5) The SOC may be reimbursed, from money advanced by the Treasurer or
appropriated by Parliament for the purpose, amounts not exceeding the
estimated net amount of revenue forgone through ceasing to perform or not
performing any such activities, as determined by the Treasurer having regard
to such factors as the Treasurer considers relevant in the
circumstances.12 Constitutions of company SOCs(1) The Ministers who are the voting shareholders of a company SOC are
responsible for ensuring that the constitution of the SOC at all times contain
provisions to the effect of those required by Schedule
2.(2) The constitution may contain other provisions, so long as they are
not inconsistent with the provisions referred to in subsection (1) or any
other provisions of this Act.(3) This section does not apply to the extent provided in resolutions
of both Houses of Parliament.13 Constitutions of subsidiaries(1) The Ministers who are the voting shareholders of a company SOC are
responsible for ensuring that the constitution of every subsidiary of the SOC
at all times contain provisions to the effect of those required by Schedule
3.(2) The constitution may contain other provisions, so long as they are
of both Houses of Parliament.14 Dividends(1) The board of a company SOC and the voting shareholders may agree
that payments required to be made by the SOC or any of its subsidiaries in
respect of dividends will be applied in the purchase of shares by shareholders
in the SOC.(2) If any such payments are applied in the purchase of shares, the
payments may be appropriated for that purpose without being paid into the
Consolidated Fund.(3) Otherwise, dividends declared for a company SOC or any of its
subsidiaries and payable to eligible Ministers are to be paid to the Treasurer
on behalf of the State for payment into the Consolidated
Fund.15 Tax-equivalents(1) A company SOC must from time to time pay to the Treasurer for
payment into the Consolidated Fund such amounts as the Tax Assessor determines
to be equivalent to the amounts that would be payable by the SOC if it were
liable to pay taxes under the law of the
Commonwealth.(2) The SOC is not required to make payments under this section to the
extent that it is or becomes liable to pay any such
taxes.(3) Payments are to be made under this section on such terms as the
Tax Assessor determines to be equivalent to the terms on which the amounts
would be payable (including terms as to instalments and times of payment) if
the SOC were liable to pay corresponding taxes under the law of the
Commonwealth.(4) The SOC and the Treasurer may enter into agreements regarding the
amounts to be paid under this section or the terms on which they are to be
paid, and any such agreements have effect despite anything in subsections (1)
and (3).(5) The determinations of the Tax Assessor under this section are to
be made in such a way as to give effect to any such
agreements.(6) Any such determination of the Tax Assessor is final, and the
Treasurer and the SOC are required to make all the necessary payments and
refunds to give effect to the determination.(6A) If a refund is required, the Treasurer, or an authorised person,
may direct payment out of the Consolidated Fund of the amount required to be
refunded. The Consolidated Fund is appropriated to the necessary extent to
enable payment of such refunds.(7) The Premier may nominate any person or persons to be the Tax
Assessor for any one or more company SOCs, and may revoke any such
nomination.(8) This section applies to the subsidiaries of a company SOC in the
same way as it applies to the SOC, and (where relevant) applies to the SOC and
its subsidiaries as a group.(9) Amounts required to be paid under this section are called
tax-equivalents.(10) In this section:authorised
person means the Chief Commissioner of State Revenue, or an officer
of Treasury authorised by the Chief Commissioner of State Revenue to exercise
the functions of an authorised person under this section.Tax
Assessor, in relation to a company SOC, means the person nominated
for the time being under subsection (7) as the Tax Assessor for the
SOC.16 Government guarantee(1) The obligations of a company SOC or any of its subsidiaries are
not guaranteed by the State of New South Wales, except to the extent that the
board of the SOC and voting shareholders agree in
writing.(2) Any liability arising from an agreed guarantee is to be met out of
the Consolidated Fund, which is appropriated
accordingly.(3) The voting shareholders may, after the consultation with the board
of the SOC, fix charges to be paid by the SOC or any of its subsidiaries to
the Treasurer in respect of an agreed guarantee, either generally or in so far
as it relates to specified matters.(4) Payments by the SOC or any of its subsidiaries to the Treasurer in
respect of any such charges are required to be made at such times, and in such
instalments, as the Treasurer determines.17 State taxation(1) In this section:exempt
matter means:(a) the formation of, or the acquisition of shares in, a company in
anticipation of the establishment of a company SOC, or
(c) the issue or transfer of shares of a company SOC or any of its
subsidiaries to eligible Ministers, or
(d) the transfer of assets, rights or liabilities to a company SOC or
any of its subsidiaries from the State, any authority of the State or any
subsidiary of an authority of the State, or
includes stamp duty and any other tax, duty, fee, levy or charge, but does not
include tax-equivalents.(2) Tax under a law of the State is not payable in relation to:(a) an exempt matter, or
(b) anything done (including, for example, a transaction entered into
or an instrument or document made, executed, lodged or given) because of, or
for a purpose connected with or arising out of, an exempt
(3) The Treasurer or a person authorised by the Treasurer may, by
written instrument, certify that:(a) a specified matter or thing is an exempt matter,
(b) a specified thing was done (including, for example, a transaction
entered into or an instrument or document made, executed, lodged or given)
because of, or for a purpose connected with or arising out of, a specified
exempt matter.
(4) For all purposes and in all proceedings, a certificate under this
section is conclusive evidence of the matters certified, except so far as the
contrary is established.18 Subsidiaries(1) A company SOC or any of its subsidiaries may not form, participate
in the formation of or acquire subsidiaries without the prior written approval
of the voting shareholders.(2) A company SOC or any of its subsidiaries may not acquire or
dispose of shares of a company, or participate in any other transaction,
resulting in the company becoming or ceasing to be a subsidiary, without the
prior written approval of the voting shareholders.(3) In seeking the approval of the voting shareholders, the SOC or
subsidiary is required to provide the voting shareholders with such
information as they require, including such kinds of information (if any) as
are prescribed by the regulations under this Act.19 Acquisition and disposal of assets etc(1) A company SOC or any of its subsidiaries may not acquire or
dispose of fixed assets or investments, including shares in a company, without
the prior written approval of the voting shareholders:(a) where the total assets and investments being acquired or disposed
of (together with any other such acquisitions or dispositions during the last
12 months) represent an amount in excess of the prescribed percentage of the
written down value of the SOC’s consolidated fixed assets and
investments as disclosed in its last audited financial report,
(b) where it could reasonably be expected that the inclusion or
exclusion, respectively, of the total current year’s profit or loss of
such acquisition or disposition (together with any other such acquisitions or
dispositions during that year) would result in an increase in or diminution of
the SOC’s consolidated pre-tax operating profit or loss for the year of
acquisition or disposal in excess of the prescribed percentage compared with
that consolidated pre-tax operating profit or loss disclosed in its last
(2) In the case of an acquisition to which this section applies, the
amount is the cost price of the asset or
investment.(3) In the case of a disposition to which this section applies, the
amount is the book value or the consideration on disposal, whichever is the
greater.(4) A company SOC or any of its subsidiaries may not acquire or
dispose of any assets or liabilities, in contravention of any requirements of
the regulations under this Act.(5) In seeking the approval of the voting shareholders under this
section, the SOC or subsidiary is required to provide the voting shareholders
with such information as they require, including such kinds of information (if
any) as are prescribed by the regulations under this
Act.(6) The prescribed percentage is 10 per cent or such other percentage
as is prescribed by the regulations under this Act.(7) All or any specified requirements of subsections (1), (2) and (3)
do not apply in such circumstances as are specified in a written notice given
to a company SOC or a subsidiary of a company SOC by the
Treasurer.(8) The Treasurer may not give such a notice unless satisfied that the
requirements are incapable of application to the SOC or subsidiary in the
circumstances or would apply to it in a clearly inappropriate
manner.(9) The voting shareholders may, by written notice, direct a company
SOC or its subsidiaries not to dispose of any specified
asset.20 Sale or disposal of main undertaking(1) None of the main undertakings of a company SOC, and none of the
main undertakings of any of its subsidiaries, may be sold or disposed of
except with the prior written approval of the voting
shareholders.(2) The main undertakings are as specified in the most recent
statement of corporate intent of the SOC.Part 3 Statutory SOCsDivision 1 Establishment of statutory SOCs20A Establishment of statutory SOCs(1) A corporation becomes a statutory SOC by the insertion of its name
in Schedule 5 by an Act of Parliament.(2) A company cannot become a statutory
SOC.20B Change or removal of name of statutory SOC(1) The regulations under this Act may amend Schedule 5 to reflect a
change of name of a statutory SOC contained in that
Schedule.(1A) On the day on which a regulation under section 12 of the Energy Services Corporations Act
1995 takes effect, this Act is amended by omitting from
Schedule 5 the name of the energy services corporation whose name is being
varied and by inserting instead the corporation’s name as
varied.(1B) On the day on which a regulation under clause 2 of Schedule 5 to
the Ports Assets (Authorised Transactions)
Act 2012 takes effect, this Act is amended by omitting from
Schedule 5 the name of the Port Corporation whose name is being changed and by
inserting instead the corporation’s name as
changed.(2) The name of a statutory SOC may not be removed from Schedule 5
except by an Act of Parliament.20C Transfer of assets, rights and liabilities(1) Assets, rights and liabilities of the State or an authority of the
the authority of a Minister or a government entity, or under the executive
authority of the State, may be transferred to a statutory SOC or any of its
subsidiaries, in exchange for the issue of shares or on any other
statutory SOC or any of its subsidiaries.(3) The regulations under this Act may provide that references in any
(b) (without limiting the above) a Minister or a government entity or
an officer or employee of a government entity,
are to be read as references to a statutory SOC or any of its
subsidiaries or to a director, officer or employee of any such SOC or
statutory corporation unless:(a) the assets, rights and liabilities can be transferred to the
statutory SOC apart from this section, or
20D Ministerial directionFor the purposes of or incidental to the transfer from an
authority to a statutory SOC, a subsidiary of a statutory SOC or any other
person of any assets, rights or liabilities under this Act or under the Act by
which the name of the statutory SOC is inserted in Schedule 5, the authority
is, in the exercise of its functions, subject to the control and direction of
the Minister.Division 2 Provisions relating to statutory SOCs20E Principal objectives of statutory SOCs(1) The principal objectives of every statutory SOC are:(a) to be a successful business and, to this end:(i) to operate at least as efficiently as any comparable businesses,
(2) Each of the principal objectives of a statutory SOC is of equal
importance.20F Status of statutory SOCsA statutory SOC or any of its subsidiaries:(a) is not and does not represent the State except by express
or under any law of the State merely because it is a SOC,
provides.20G Application of Commonwealth Corporations Act 2001(1) A statutory SOC is declared to be an excluded matter for the
Corporations legislation other than:(a) section 1101I (Gaming and wagering laws do not affect validity of
contracts relating to financial products) of that Act to the extent that it
applies to any contract that is a financial product entered into by an energy
services corporation within the meaning of the Energy Services Corporations Act
(b) to the extent specified by the regulations for the purposes of
to that matter in the State concerned.(2) The regulations may declare a statutory SOC to be an applied
2001 in relation to:(a) the whole of the Corporations legislation, or
(b) an Act, regulations or other instrument forming part of the
Corporations legislation, or
(c) a provision or provisions of the Corporations legislation or of an
Act, regulations or other instrument forming part of the Corporations
Commonwealth.(3) A provision of the Corporations legislation that is the subject of
any such declaration in the regulations has effect subject to the following
modifications:(a) the provision applies as if a SOC were a public company and a
(b) the provision applies as if shares in the SOC held by voting
shareholders were shares held in the SOC as a public company and a company
(c) such other modifications as may be prescribed by the
(4) Without limiting subsections (2) and (3) (c), any such regulations
may:(a) specify modifications to the definitions and other interpretative
provisions of the Corporations legislation relevant to any provision of the
Commonwealth legislation that is the subject of the declaration,
(b) provide for ASIC to exercise a function under any provision of the
Corporations legislation that is the subject of the declaration, but only
if:(i) ASIC is to exercise that function pursuant to an agreement of the
kind referred to in section 11 (8) or (9A) (b) of the Australian Securities and Investments Commission Act
2001 of the Commonwealth, and
(ii) ASIC is authorised to exercise that function under section 11 of
Commission Act 2001 of the Commonwealth,
(c) specify that a reference to ASIC in any provision of the
Corporations legislation that is the subject of the declaration is to be read
as a reference to another person, and
(d) identify the provisions of the Corporations legislation to which
the declaration relates by reference to that legislation as in force at a
(e) specify a court of this State (other than the Supreme Court) to
exercise any function conferred on a court or the Court by any provision of
the Corporations legislation to which the declaration
(5) Subsection (2) does not apply to any provision of the Corporations
legislation that applies to a statutory SOC as a law of the
Commonwealth.(6) Words and expressions used in this section and also in Part 3 of
Part.20H Share capital, shares and shareholders(1) A statutory SOC is to have a share capital and shares as provided
in its constitution.(2) A statutory SOC must have two shareholders, and no more at any
time.(3) Each shareholder must at all times have an equal number of shares
in the statutory SOC.(4) Each shareholder must at all times be entitled to rights equal to
those to which the other shareholder is entitled.(5) The shareholders are to be the Treasurer and another Minister for
the time being nominated by the Premier as a voting shareholder of the SOC.
The Premier can be nominated as a voting
shareholder.(6) If the person holding office as Treasurer ceases to hold that
6.20HA Authority for Minister to act for and on behalf of a
voting shareholder(1) A voting shareholder of a statutory SOC may authorise any Minister
statutory SOC,
whichever occurs first.(7) In the constitution of the statutory SOC of which the Minister is
a voting shareholder, and in any Act or instrument, a reference to a voting
for or on behalf of a voting shareholder.(8) A Minister may be authorised under this section by reference to
holds as Minister pursuant to an authority under this
section.(9) An authority under this section must be in writing, signed by the
(b) a Minister who is also a voting shareholder of the same statutory
voting shareholder of the statutory SOC.
(14) This section applies despite any provision of the Corporations
legislation that is the subject of a declaration made for the purposes of Part
3 of the Corporations (Ancillary Provisions)
Act 2001 by regulations made under section
20G.(15) This section does not affect the operation of section 36 or 37 of
shareholder whether conferred or imposed:(a) by the constitution of the statutory SOC, or
function.20I Portfolio Minister(1) The Minister who has the duty to administer the foundation charter
of a statutory SOC is the portfolio Minister of the
SOC.(2) However, if:(a) there is not a Minister who is the portfolio Minister under
(b) the Premier is of the opinion that another Minister should be the
portfolio Minister,
the portfolio Minister of the SOC is the Minister nominated by the
Premier by order published in the Gazette.(3) Such a nomination is to be made by reference to a ministerial
title. The Premier can be nominated as a portfolio
Minister.20J Directors(1) There is to be a board of directors of a statutory
SOC.(2) The board is to consist of not fewer than 3 and not more than 7
directors appointed by the Governor on the recommendation of the voting
shareholders.(3) Of the directors:(a) one is to be a staff director, and
(b) the others are to be persons who, in the opinion of the voting
shareholders, will assist the SOC to achieve its principal
(4) The staff director is to be selected in accordance with the
procedures specified in the SOC’s foundation charter or (in the absence
of any such procedures) in accordance with the relevant provisions of Schedule
8.(5) The chief executive officer may be appointed as a
director.(6) The board is accountable to the voting shareholders in the manner
SOC.(7) Schedule 8 has effect with respect to the constitution and
procedure of the board.20K Chief executive officer(1) Every statutory SOC is to have a chief executive
officer.(2) The Governor, on the recommendation of the portfolio Minister, may
appoint the chief executive officer of a statutory SOC. Such an appointment
cannot be effected unless it is recommended by the
board.(3) The chief executive officer of a statutory SOC may delegate any
functions of the chief executive officer to an employee of the SOC, but this
power is subject to any directions of the board.(4) Schedule 9 has effect with respect to the chief executive officer
of a statutory SOC.20L Operation and management(1) All decisions relating to the operation of a statutory SOC are to
be made by or under the authority of the board.(2) The chief executive officer of a statutory SOC is, subject to
subsection (1), responsible for the day to day management of the operation of
the SOC in accordance with the general policies and specific directions of the
board.20M Staff(1) A statutory SOC may employ such staff as it requires to exercise
its functions.(2) A statutory SOC may fix the salary, wages and conditions of its
staff in so far as they are not fixed by or under any other Act or
law.(3) The regulations may make provision for or with respect to the
employment of the staff of a statutory SOC, including the conditions of
employment and the discipline of any such staff.(4) Any such regulations relating to the conditions of employment or
industrial tribunal and to any industrial agreement or enterprise agreement to
which the SOC is a party, and
(b) have effect despite any determination of the SOC under subsection
(5) Except as provided by the regulations under this Act, this section
does not apply to the appointment, employment or conditions of employment of
the chief executive officer of a statutory SOC.(6) Except as provided by the regulations under this Act, this section
applies to a subsidiary of a statutory SOC (other than a company) and its
staff in the same way as it applies to the SOC and its
staff.20N Non-commercial activities(1) If the portfolio Minister wishes a statutory SOC to perform
activities, or to cease to perform activities, or not to perform activities,
in circumstances where the board considers that it is not in the commercial
interests of the SOC to do so, that Minister with the approval of the
Treasurer may, by written notice to the board, direct the SOC to do so in
accordance with any requirements set out or referred to in the
notice.(2) The SOC is required to comply with any such
circumstances.20O Power of portfolio Minister to notify board of public
sector policies(1) The portfolio Minister with the approval of the Treasurer may
notify the board of a statutory SOC, in writing, of a public sector policy
that is to apply to the SOC and its subsidiaries if the portfolio Minister is
satisfied that it is necessary to give the notification in the public
interest.(2) The board must ensure that the policy is carried out in relation
to the SOC and must, as far as practicable, ensure that the policy is carried
out in relation to its subsidiaries.(3) Before giving a notification under this section, the portfolio
Minister must:(a) consult with the board, and
(b) request the board to advise the portfolio Minister whether, in its
opinion, carrying out the policy would not be in the best interests of the SOC
(4) The SOC may be reimbursed, from money advanced by the Treasurer or
estimated net cost of complying with such a notification, or the estimated net
amount of revenue forgone through complying with such a notification, as
determined by the Treasurer having regard to such factors as the Treasurer
considers relevant in the circumstances.(5) The portfolio Minister is required to cause a notice to be
published in the Gazette setting out the reasons why a notification was given
under this section and why it is in the public interest that the notification
be given.(6) A notice referred to in subsection (5) is to be published within 1
month after the notification is given.20P Power of portfolio Minister to give directions in public
interest(1) The portfolio Minister with the approval of the Treasurer may give
the board of a statutory SOC a written direction in relation to the SOC and
its subsidiaries if the portfolio Minister is satisfied that, because of
exceptional circumstances, it is necessary to give the direction in the public
interest.(2) The board must ensure that the direction is carried out in
relation to the SOC and must, as far as practicable, ensure that the direction
is complied with in relation to its subsidiaries.(3) Before giving a direction under this section, the portfolio
opinion, complying with the direction would not be in the best interests of
the SOC or any of its subsidiaries.
estimated net cost of complying with such a direction, or the estimated net
amount of revenue forgone through complying with such a direction, as
published in the Gazette setting out the reasons why a direction was given
under this section and why it is in the public interest that the direction be
given.(6) A notice referred to in subsection (5) is to be published within 1
month after the direction is given.20Q Constitution of statutory SOCs(1) A statutory SOC is to have a
constitution.(2) As far as practicable, the constitution of a statutory SOC is to
have the same operation and effect in relation to the SOC as the constitution
of a company has in relation to the company.(3) The constitution of a statutory SOC may contain matters that, for
a company, would be found in the Corporations Act
2001 of the Commonwealth.(4) The constitution of a statutory SOC may make provision for or with
respect to the provision, form, custody and use of the seal of the SOC. Any
such provisions have effect despite section 50 of the Interpretation Act
1987.(5) The constitution of a statutory SOC may contain provisions
regarding the manner of alteration or replacement of the
constitution.(6) The Ministers who are the voting shareholders of a statutory SOC
are responsible for ensuring that the constitution of the SOC at all times
contains provisions to the effect of those required by Schedule
6.(7) The constitution may contain other provisions, so long as they are
not inconsistent with the provisions referred to in subsection (6) or any
other provisions of this Act.(8) This section does not apply to the extent provided in resolutions
of both Houses of Parliament.20R Constitution of subsidiaries(1) The Ministers who are the voting shareholders of a statutory SOC
are responsible for ensuring that the constitution of every subsidiary of the
SOC at all times contains provisions to the effect of those required by
Schedule 7.(2) The constitution may contain other provisions, so long as they are
of both Houses of Parliament.20S Dividends(1) A statutory SOC is to have a share dividend scheme, as provided in
its constitution, in a form approved by the
Treasurer.(2) The board of a statutory SOC and the voting shareholders may agree
in the SOC.(3) If any such payments are applied in the purchase of shares, the
Consolidated Fund.(4) Otherwise, dividends declared for a statutory SOC or any of its
subsidiaries and payable to voting shareholders are to be paid to the
Treasurer on behalf of the State for payment into the Consolidated
Fund.(5) Nothing in this section affects the operation of section 59B of
1983 in relation to statutory SOCs. However, if the Treasurer
requires a statutory SOC to pay an amount by way of dividend under that
section, the Treasurer must, within one month after notifying the SOC of that
requirement, publish a notice in the Gazette setting out:(a) the amount of the dividend to be paid, and
(b) the reasons for requiring the payment to be made under that
section rather than pursuant to the share dividend scheme under this
20T Tax-equivalents(1) A statutory SOC must from time to time pay to the Treasurer for
Assessor for any one or more statutory SOCs, and may revoke any such
nomination.(8) This section applies to the subsidiaries of a statutory SOC in the
of the Department of Finance and Services authorised by the Chief Commissioner
of State Revenue to exercise the functions of an authorised person under this
section.Tax
Assessor, in relation to a statutory SOC, means the person nominated
SOC.20U Government guarantee(1) The obligations of a statutory SOC or any of its subsidiaries are
board of the SOC and the voting shareholders agree in
accordingly.(3) The voting shareholders may, after consultation with the board of
the SOC, fix charges to be paid by the SOC or any of its subsidiaries to the
Treasurer in respect of an agreed guarantee, either generally or in so far as
it relates to specified matters.(4) Payments by the SOC or any of its subsidiaries to the Treasurer in
instalments, as the Treasurer determines.20V State taxation(1) In this section:exempt
matter means:(a) the issue or transfer of shares of a statutory SOC or any of its
(b) the transfer of assets, rights or liabilities to a statutory SOC
or any of its subsidiaries from the State, any authority of the State or any
(3) The Treasurer or a person authorised by the Treasurer may, by a
contrary is established.20W Private corporations and subsidiaries(1) A statutory SOC may, subject to this section:(a) form or participate in the formation of private corporations,
corporation are related to the functions of the SOC as set out in its
foundation charter.(2) A statutory SOC or any of its subsidiaries may not form,
participate in the formation of or acquire subsidiaries without the prior
written approval of the voting shareholders.(3) A statutory SOC or any of its subsidiaries may not acquire or
prior written approval of the voting shareholders.(4) In seeking the approval of the voting shareholders, the SOC or
are prescribed by the regulations under this Act.(5) In this section:private
corporation means a corporation within the meaning of the Corporations Act 2001 of the Commonwealth
formed in or outside New South Wales.20X Acquisition and disposal of assets, investments and
liabilities(1) A statutory SOC or any of its subsidiaries may not acquire or
amount is the book value of the consideration or disposal, whichever is the
greater.(4) A statutory SOC or any of its subsidiaries may not acquire or
to a statutory SOC or a subsidiary of a statutory SOC by the
manner.(9) The voting shareholders may, by written notice, direct a statutory
asset.20Y Sale or disposal of main undertaking(1) None of the main undertakings of a statutory SOC, and none of the
statement of corporate intent of the SOC.Division 3 Legal capacity and powers of statutory
SOCs20Z Interpretation(1) In this Division:officer of a statutory SOC
means:(a) a director of the SOC, or
prohibition.(2) In this Division:(a) the doing of an act by a statutory SOC includes a reference to the
making of an agreement by the SOC and a reference to a transfer of property to
or by the SOC, and
(b) a reference to power includes a reference to legal
20ZA Objects of Division(1) The objects of this Division include:(a) providing that the doctrine of ultra vires does not apply to
statutory SOCs, and
(b) ensuring that statutory SOCs give effect to any restrictions on
their objects or powers, but without affecting the validity of their dealings
(2) This Division is to be construed and have effect
accordingly.20ZB General powers of statutory SOCs(1) A statutory SOC has, for or in connection with the performance of
its functions, all the powers of a natural person, including for example, the
power:(a) to enter into contracts, and
(b) to acquire, hold, dispose of and deal with property,
(d) to charge, and fix terms, for goods, services and information
supplied by it, and
(f) to do all other things necessary or convenient to be done for, or
in connection with, the performance of its
(2) Without limiting subsection (1), a statutory SOC has the powers
that are conferred on it by or under this or any other
Act.(3) A statutory SOC may exercise its powers within or outside the
State.(4) Without limiting subsection (3), a statutory SOC may exercise its
powers outside Australia.(5) The fact that the doing of an act by a statutory SOC would not be,
or is not, in its best interests does not affect its legal capacity to do the
act.20ZC Restrictions on statutory SOCs(1) Section 20ZB has effect in relation to a statutory SOC subject to
any restrictions on the SOC’s powers expressly imposed by or under this
or another Act.(2) Section 20ZB also has effect in relation to the SOC subject to any
restrictions expressly imposed by:(a) the SOC’s constitution, and
(b) any relevant statement of corporate intent of the SOC,
(c) any relevant directions, notifications or approvals given to the
SOC by the SOC’s voting shareholders or portfolio
(3) If:(a) the SOC exercises a power contrary to a restriction mentioned in
subsection (1) or (2), or
(b) the SOC’s foundation charter sets out the SOC’s
objects or functions and the SOC does an act otherwise than in pursuance of
the objects or functions,
the SOC contravenes this subsection.(4) The exercise of the power mentioned in subsection (3) (a), or the
act mentioned in subsection (3) (b), is not invalid merely because of the
contravention.(5) An officer of the SOC who is involved in the contravention
contravenes this subsection.(6) An act of the officer is not invalid merely because, by doing the
act, the officer contravenes subsection (5).(7) The SOC or officer of the SOC is not guilty of an offence merely
because of the relevant contravention.(8) The fact that:(a) by exercising the powers mentioned in subsection (3) (a), or doing
the act as mentioned in subsection (3) (b), the SOC contravened, or would
contravene, subsection (3), or
(b) by doing a particular act, an officer of the SOC contravened, or
would contravene, subsection (5),
may be asserted or relied on only in proceedings between the voting
shareholders or the State and officers of the SOC.20ZD Persons having dealings with statutory SOCs or
property(1) A person having dealings with a statutory SOC is entitled to make,
in relation to those dealings, the assumptions referred to in subsection (3).
In any proceedings relating to those dealings, any assertion by the SOC that
the matters that the person is so entitled to assume were not correct must be
disregarded.(2) A person having dealings with another person (the apparent owner)
who has acquired or purports to have acquired title to property from a
statutory SOC (whether directly or indirectly) is entitled to make, in
relation to the acquisition or purported acquisition of title from the SOC,
the assumptions referred to in subsection (3). In any proceedings in relation
to those dealings, any assertion by the SOC or by the apparent owner that the
matters that the person is so entitled to assume were not correct must be
disregarded.(3) The assumptions that a person is, because of subsection (1) or
(2), entitled to make are:(a) that, at all relevant times, the SOC’s foundation charter
and this Act have been complied with, and
(b) that, at all relevant times, the SOC’s constitution has been
(c) that a person who appears from publicly available information to
be a director, the chief executive officer or a secretary of the SOC has been
duly appointed and has authority to exercise the functions customarily
exercised by a director, by the chief executive officer or by a secretary, as
the case may be, of a body carrying on a business of the kind carried on by
the SOC, and
(d) that a person who is held out by the SOC to be an officer or agent
of the SOC has been duly appointed and has authority to exercise the powers
and perform the duties customarily exercised or performed by an officer or
agent of the kind concerned, and
(e) that an officer or agent of the SOC who has authority to issue a
document on behalf of the SOC has authority to warrant that the document is
genuine and that an officer or agent of the SOC who has authority to issue a
certified copy of a document on behalf of the SOC has authority to warrant
that the copy is a true copy, and
(f) that a document has been duly sealed by the SOC if it bears what
appears to be an impression of a seal of the SOC and the sealing of the
document appears to be attested by a person who, because of paragraph (c), may
be assumed to be a director of the SOC or the SOC’s chief executive
(g) that the directors, chief executive officer, employees and agents
of the SOC have properly performed their duties to the
(4) This section does not entitle a person to make an assumption, and
does not prevent an assertion being made in relation to an assumption,
if:(a) the person has actual knowledge that the assumption is not
(b) the person’s connection or relationship with the SOC is such
that the person ought to know that the assumption is not
(5) If, because of subsection (4), a person is not entitled to make a
particular assumption:(a) if the assumption is in relation to dealings with the
SOC—subsection (1) does not apply to any assertion by the SOC in
relation to the assumption, or
(b) if the assumption is in relation to an acquisition or purported
acquisition from the SOC of title to property—subsection (2) does not
apply to any assertion by the SOC or another person in relation to the
20ZE Effect of fraud(1) A person’s entitlement under this Division to make an
assumption is not affected merely by the fact that any person:(a) has acted or is acting fraudulently in relation to the dealing or
acquisition or purported acquisition of title to property to which the
assumption relates, or
(b) has forged a document that appears to have been sealed on behalf
of a statutory SOC.
(2) However, the person is not entitled to make the assumption if the
person has actual knowledge of that fraudulent action or
forgery.Part 4 Accountability21 Statement of corporate intent: timetable and
procedure(1) The board of a State owned corporation must prepare and submit to
the voting shareholders a draft written statement of corporate intent not
later than one month after the commencement of each financial year of the
corporation.(2) The board must consider any comments on the draft statement of
corporate intent that are made to it by the voting shareholders within 2
months after the commencement of the financial year of the
corporation.(3) The board must consult in good faith with the voting shareholders
following communication to it of the comments, make such changes to the
statement as are agreed between the voting shareholders and the board and
deliver the completed written statement to the voting shareholders within 3
months after the commencement of the financial
year.(4) The statement may not, before it is laid before both Houses of
Parliament, be published or made available to the public without the prior
approval of the board and the voting shareholders.(5) The statement may be modified at any time by the board with the
agreement of the voting shareholders.(6) If the board, by written notice to the voting shareholders,
proposes a modification of the statement, the board may, within 14 days, make
the modification unless the voting shareholders, by written notice to the
board, direct the board not to make it.(7) The voting shareholders may, from time to time, by written notice
to the board, direct the board to include in, or omit from, a statement of
corporate intent any specified matters.(8) Before giving a direction under this section, the voting
shareholders are to consult with the board as to the matters to be referred to
in the notice.(9) The corporation is required to comply with any such
direction.(10) At any particular time, the statement of corporate intent for the
corporation is the completed statement, with any modifications or deletions
made in accordance with this Part.22 Statement of corporate intent: contentsEach statement of corporate intent is required to specify for the
group comprising a State owned corporation and its subsidiaries, in respect of
the financial year to which it relates and each of the 2 following financial
years, the following information:(a) the objectives of the corporation and of its
(b) the main undertakings of the corporation and of its
(c) the nature and scope of the activities to be
(d) the accounting policies to be applied in the financial reports of
the corporation and of its subsidiaries,
(e) the performance targets and other measures by which the
performance of the corporation and of its subsidiaries may be judged in
relation to their stated objectives,
(f) the kind of information to be provided to the voting shareholders
by the corporation during the course of those financial years, including the
information to be included in each half-yearly report,
(g) such other matters as may be agreed on by the voting shareholders
and the board from time to time.
23 Half-yearly reports(1) Within one month after the end of the first 6 months of each
financial year of a State owned corporation (or such other period after the
end of that half-year as may be agreed on by the board and the voting
shareholders), the board is required to deliver to the voting shareholders a
report of the operations of the corporation and of its subsidiaries during
that half-year.(2) Each report required by this section must include the information
required by the statement of corporate intent to be included in
it.24 Annual reports and financial reports: company
SOCs(1) Within 4 months after the end of each financial year of a company
SOC (or such other time as may be prescribed by regulations under this Act),
the board is required to deliver to the voting shareholders:(a) an annual report of the operations of the SOC and of its
subsidiaries during that financial year, and
(b) the SOC’s financial report for that financial year, audited
by the Auditor-General, being a financial report that conforms to the
requirements of the Corporations Act
2001 of the Commonwealth or any other law applying to the
(c) the Auditor-General’s report on the SOC’s financial
(2) Every annual report under subsection (1) (a) must:(a) contain such information as is required by the voting shareholders
to enable an informed assessment of the operations of the company SOC and its
subsidiaries, including a comparison of the performance of the SOC and
subsidiaries with the relevant statement of corporate intent,
(b) state the dividend payable to the State by the SOC for the
(3) Every Auditor-General’s report under subsection (1) (c) must
conform to the requirements of similar reports under the Corporations Act 2001 of the Commonwealth
or any other applicable law.(3A) Each annual report is to include a section that:(a) identifies any actual departures from the performance targets
(including financial targets) set out in the statement of corporate intent for
the SOC for the period to which the report relates, and
(b) sets out the reasons for each of the departures from the
(4) The requirements of this section are additional to the
2001 of the Commonwealth or any other applicable law, but
anything done for the purposes of that Act or other law that would comply with
the requirements of this section may be taken to have also been done for the
purposes of this section.(5) The Auditor-General has, for the purposes of exercising the
Auditor-General’s functions under this section, all the powers of a
registered company auditor under the Corporations
Act 2001 of the Commonwealth.(6) The SOC is required to pay to the Auditor-General such charges for
the exercise by the Auditor-General of functions under this section as are
agreed on by the SOC and the Auditor-General or (failing agreement) as are
determined by the Treasurer.(7) References in this section to the Auditor-General extend to any
person carrying out functions under this section for the
Auditor-General.(8) This section applies to the subsidiaries of a company SOC in the
same way as it applies to the SOC.(9) This section does not require the board of a subsidiary of a
company SOC to deliver an annual report of its operations or a financial
report conforming to the requirements of the Corporations Act 2001 of the Commonwealth
if:(a) the SOC has complied with all requirements of that Act concerning
consolidated financial reports in respect of the subsidiary,
(b) that Act relieves or otherwise exempts the board from compliance
with the requirement to prepare the financial
SOCs(1) Part 3 of the Public Finance
and Audit Act 1983 applies to statutory SOCs and their
subsidiaries, and they are statutory bodies for the purposes of that
Part.(2) The Annual Reports (Statutory
Bodies) Act 1984 applies to statutory SOCs, and they are
statutory bodies for the purposes of that Act.(3) Each annual report is to include a section that:(a) identifies any actual departures from the performance targets
(4) A reference in Part 3 of the Public Finance and Audit Act 1983
to a Minister is, in relation to a statutory SOC, taken to be a reference to
the voting shareholders of the SOC, unless the Treasurer otherwise
directs.(5) A reference in the Annual
Reports (Statutory Bodies) Act 1984 to the appropriate
Minister is, in relation to a statutory SOC, taken to be a reference to the
voting shareholders of the SOC, unless the Treasurer otherwise
directs.25 Special reports of Auditor-General(1) The Auditor-General may make a special report regarding any matter
arising from audit which in the opinion of the Auditor-General should be
brought to the attention of Parliament.(2) The Auditor-General is required to present any such special report
to the Legislative Assembly.26 Information to be laid before Parliament(1) A Minister is required to lay, or cause to be laid, the following
before each House of Parliament:(a) a copy of the constitution of each State owned corporation, within
14 sitting days after the date of the constitution or the date on which the
corporation became a State owned corporation (whichever is the
(b) a copy of the constitution of each subsidiary of each State owned
corporation, within 14 sitting days after the date of the constitution or the
date on which the subsidiary became a subsidiary of the corporation (whichever
is the later),
(c) a copy of any change to the constitution of a State owned
corporation or any of its subsidiaries, within 14 sitting days after the date
(d) a copy of the completed statement of corporate intent for a State
owned corporation, within 14 sitting days after the date the voting
shareholders received it,
(e) a copy of any modification to a completed statement of corporate
intent for a State owned corporation made after a copy of the statement was
laid before the House, within 14 sitting days after the date the modification
(f) a copy of any notice given under section 21 (6) directing the
board of a State owned corporation not to make a modification of a statement
of corporate intent, within 14 sitting days after the date the notice was
(g) a copy of any notice given under section 21 (7) directing the
inclusion of matters in or the omission of matters from a statement of
corporate intent, within 14 sitting days after the date the notice was
(h) a copy of each half-yearly report of a State owned corporation,
within 14 sitting days after the date the voting shareholders received
(i) a copy of the annual report, audited financial report, and the
Auditor-General’s report on that financial report, of a State owned
corporation, delivered to the voting shareholders under section 24, within 14
sitting days after the date of the annual general meeting of the
(j) a copy of any notice given by a Minister under section 11 or 20N
to the board of a State owned corporation directing the corporation to perform
within 14 sitting days after the date the notice was
(k) a copy of any notice given by voting shareholders under the
constitution of a State owned corporation to the board as to the amount of a
dividend, within 14 sitting days after the date the notice was
(l) a copy of any written approval given by voting shareholders under
section 18, 19 or 20 or section 20W, 20X or 20Y, within 14 sitting days after
the date the approval was given,
(m) a copy of any notice given by the Treasurer under section 19 (7)
or 20X (7), within 14 sitting days after the date the notice was
(n) a copy of any written instrument under section 17 (3) or 20V (3),
within 14 sitting days after the date the instrument was
(o) a copy of any written notification under section 20O, within 14
sitting days after the notification was given,
(p) a copy of any notice published under section 20O (5), within 14
sitting days after the date of its publication in the
(q) a copy of any written direction under section 20P, within 14
sitting days after the direction was given,
(r) a copy of any notice published under section 20P (5), within 14
(s) a copy of any notice published under section 20S (5) requiring the
payment of an amount by way of dividend under section 59B of the Public Finance and Audit Act 1983,
(t) a copy of any written direction under clause 12 of Schedule 10,
within 14 sitting days after the direction was
(2) The material referred to in subsection (1) relating to a
constitution must be accompanied by a statement as to whether or not the
constitution contains provisions to the effect of the provisions set out in
Schedule 2 or 3 (whichever is relevant), and indicating the nature and extent
of any departures. This subsection does not apply to statutory
SOCs.(3) The material referred to in subsection (1) relating to a statement
of corporate intent must be accompanied by a statement as to whether or not
the statement of corporate intent embodies any changes made to the description
of the main undertakings of the State owned corporation or its
subsidiaries.(4) Before copies of material referred to in subsection (1) (d), (e),
(f) or (g) relating to a statement of corporate intent are laid before the
Houses of Parliament, the voting shareholders may delete any information of a
commercially sensitive nature.(5) The material referred to in subsection (1) (i) must be accompanied
by a statement describing how the State owned corporation has, during the
financial year concerned, exhibited a sense of social responsibility,
including:(a) a summary of any community interests considered under section 8
(c) or 20E (1) (c) the accommodation of which was thought to be incompatible
with its principal objectives, and
(b) an assessment of the costs that would have been incurred in
accommodating any such interests.
(6) The material referred to in subsection (1) (l) relating to an
approval given under section 20 or 20Y need not be laid before the Houses of
Parliament so far as the approval relates to a transaction between any members
of a group comprising a State owned corporation and its
subsidiaries.27 Procedure if Parliament not in session(1) If a House of Parliament is not sitting when a Minister seeks to
comply with any of the requirements of section 26, a Minister is required to
present a copy of the material to the Clerk of the
House.(2) If the Legislative Assembly is not sitting when the
Auditor-General seeks to comply with any of the requirements of section 25,
the Auditor-General is required to present a copy of the special report to the
Clerk of the Legislative Assembly.(3) Material presented to the Clerk under this section:(a) on presentation and for all purposes, is taken to have been laid
before the House of Parliament, and
(b) is required to be printed by authority of the Clerk if it is a
half-yearly or annual report of a State owned corporation,
(c) may be printed by authority of the Clerk if it is material other
than such a report, and
(d) if printed by authority of the Clerk, is for all purposes taken to
be a document published by order or under the authority of the House,
(e) is to be recorded in the Minutes, or Votes and Proceedings, of the
House on the first sitting day of the House after receipt of the material by
28 Public Accounts Committee(1) The functions of the Public Accounts Committee include the
examination of the financial reports of State owned corporations, and reports
of the Auditor-General, laid before the Legislative Assembly under this
Act.(2) Part 4 of the Public Finance
and Audit Act 1983 applies in relation to any such financial
reports and Auditor-General’s reports in the same way as it applies to
financial reports and Auditor-General’s reports in relation to
authorities of the State.29 Other information to be supplied(1) The board of a State owned corporation must supply to the voting
shareholders such information relating to the affairs of the corporation or
any of its subsidiaries as they from time to time request (whether or not the
information is of a kind referred to in the statement of corporate
intent).(2) The board of a statutory SOC must supply to the portfolio Minister
such information relating to the affairs of the SOC or any of its subsidiaries
as the portfolio Minister may from time to time request (whether or not the
intent).30 Application of this Part to corporations with no
subsidiariesIf any provision of this Part is expressed to apply to a State
owned corporation and its subsidiaries (or a group comprising a State owned
corporation and its subsidiaries), the provision also applies to a State owned
corporation that has no subsidiaries.Part 5 Miscellaneous31 Crown boundThis Act binds the Crown.32 Application of Act in particular casesIt is the intention of Parliament that this Act may have effect,
in relation to any particular State owned corporation or any of its
subsidiaries, with such modifications (if any) as are specified or referred to
in other legislation applying to the corporation.33 Operation of Act(1) Nothing in this Act limits any powers or rights that the Crown or
a Minister has apart from this Act.(2) A requirement of this Act that provisions be included in the
constitution of a company does not have effect to the extent that the
requirement or the provisions are inconsistent with a law of the
Commonwealth.(3) A requirement of this Act that provisions be inserted in the
requirement or the provisions are inconsistent with a law of a place (other
than New South Wales), where the company is a subsidiary of a State owned
corporation and the company is or is to be incorporated under the law of that
place.33A Duties and liabilities of directors and other
officers(1) Schedule 10 has effect.(2) The regulations may amend or replace Schedule
10.(3) Any such regulations may:(a) confer jurisdiction on courts in relation to the duties and
liabilities of directors and officers and associated matters,
(b) impose penalties not exceeding 500 penalty units or imprisonment
not exceeding 5 years, or both.
particular obligations(1) This section applies to the following obligations of the board of
a State owned corporation:(a) the obligation to ensure that a public sector policy notified to
the board under section 20O is carried out,
(b) the obligation to ensure that a direction given to the board under
section 20P is carried out,
(c) the obligation to supply information requested of the board under
(2) A director of the board of a State owned corporation does not,
despite any other law, incur any personal liability for the compliance, or
purported compliance, in good faith by the board with an obligation to which
this section applies.(3) An officer of a State owned corporation does not, despite any
other law, incur any personal liability for his or her compliance, or
purported compliance, in good faith with a direction or decision given or made
by or on behalf of the board of the corporation for the purpose of complying
with an obligation to which this section applies.(4) This section does not affect any other protection that a director
or other officer would have for compliance, or purported compliance, with such
an obligation.(5) In this section:carry
out a direction includes comply with the direction.officer of
a State owned corporation means:(a) a director of the corporation, or
(b) the corporation’s chief executive officer (however
described), or
(c) another person who is concerned, or takes part, in the
corporation’s management.
33B Offences(1) Proceedings for an offence under this Act may be instituted at any
time before the end of 3 years after the alleged commission of the
offence.(2) Proceedings for an offence under this Act are to be disposed of
(3) The maximum penalty that may be imposed by the Local Court for an
both.34 Provisions relating to certain staffSchedule 4 has effect.35 (Repealed)35A Application of Public
Finance and Audit Act 1983(1) The Public Finance and Audit
Act 1983 does not apply in relation to a State owned
corporation or any of its subsidiaries, except as provided by section 24A and
by this section.(2) Part 4 of the Public Finance
and Audit Act 1983 applies in relation to a State owned
corporation and its subsidiaries.(3) Section 59B of the Public
Finance and Audit Act 1983 applies to statutory SOCs and their
subsidiaries, and they are statutory authorities for the purposes of that
section.36 Application of other Acts(1) The following do not apply in relation to a State owned
corporation or any of its subsidiaries:(a) Part 7 of Chapter 2 of the Industrial Relations Act
(2) For the purposes of the Independent Commission Against Corruption Act
1988:(a) State owned corporations and their subsidiaries are public
(b) directors, officers and employees of State owned corporations or
of their subsidiaries, are public officials,
but section 23 of that Act does not apply in relation to a company SOC or
any of its subsidiaries or to persons who are public officials by virtue of
their connection with a company SOC or any of its
subsidiaries.37 (Repealed)37A Modification of Environmental Planning and Assessment Act
1979 in its application to certain proposals(1) In this section:development means
development within the meaning of Part 4 of the Planning Act.State
owned corporation means a company SOC.the Planning
Planning and Assessment Act 1979.(2) The Planning Act applies to development by a State owned
corporation, except as provided by this section.(3) Part 5 of the Planning Act applies to development proposed to be
carried out by a State owned corporation that is development, or of a class or
description of development, that the Minister administering the Planning Act
certifies in writing is of State or regional significance. That Part so
applies to the development as if it were an activity within the meaning of
that Part whether or not development consent under Part 4 of the Planning Act
would otherwise be required or has been obtained in relation to the
development. Part 4 of the Planning Act accordingly does not
apply.(4) The Minister administering the Planning Act may direct, by notice
in writing to a State owned corporation, that the corporation is required to
obtain an environmental impact statement under Part 5 of that Act in respect
of development to which subsection (3) applies. Accordingly, the State owned
corporation is taken to be the determining authority under Part 5 of that Act
and must obtain the approval of that Minister under Division 4 of Part 5 of
that Act before carrying out the development.(5) If an environmental impact statement is not required to be
obtained in respect of development to which subsection (3) applies, the State
owned corporation is not to carry out the activity unless it has obtained the
approval of the Minister administering the Planning Act. Before giving that
approval, that Minister is required to comply with section 111 of that Act as
if that Minister were the determining authority.(6) Development to which subsection (3) applies must not include any
act, matter or thing that is prohibited by an environmental planning
instrument made under the Planning Act.37B Establishment of Ministerial Holding
name of the Ministerial Holding Corporation.(2) The affairs of the Corporation are to be managed by the Minister
who may authorise another Minister to exercise functions in relation to
particular assets, rights and liabilities.(3) Any act, matter or thing done in the name of, or on behalf of, the
Corporation by the Minister or a Minister authorised by the Minister, or with
the authority of any such Minister, is taken to have been done by the
Corporation.(4) The Corporation has the functions conferred or imposed on it by or
under this or any other Act.(5) The functions of the Corporation are:(a) to hold on behalf of the Crown, retain, transfer and dispose of
assets, rights and liabilities transferred to it by or under this or any other
(b) to acquire, exchange, lease, dispose of and otherwise deal with
(c) to develop and manage land transferred to it under this Act or
otherwise acquired by it, and
(d) to carry on any activities or business that relate to any of the
above or are incidental or ancillary to any of the above, including demanding,
(6) Without limiting the generality of subsection (5), the Corporation
may transfer and dispose of any such assets, rights and liabilities to the
Crown or to any person on behalf of the Crown.38 Regulations(1) The Governor may make regulations, not inconsistent with this Act,
be made for or with respect to matters relating to the process for the
selection of staff directors of State owned
corporations.39 Savings and transitional provisionsSchedule 11 has effect.Schedule 1 Company SOCs(Sections 3, 4, 5)Schedule 2 Provisions to be included in constitution of
company SOCs(Section 12)Provisions to the effect of the following provisions are to be
included in the constitution of a company SOC. Words and expressions used in
these provisions have the same meanings as in the State Owned Corporations Act
1989.1 EntrenchmentThe constitution may not be altered or added to in a way that is
inconsistent with the provisions in Schedule 2 to the State Owned Corporations Act 1989,
unless and until resolutions approving the alteration or addition have been
passed by both Houses of Parliament.2 Act to prevail(1) The provisions of the State
Owned Corporations Act 1989 prevail over any inconsistent
provisions of the constitution of the corporation.(2) The corporation is expressly prohibited from exercising any power
of the corporation in contravention of any requirement of or under section 19
or 20 of the State Owned Corporations Act
1989.3 Shareholders(1) Only eligible Ministers may hold shares in the corporation’s
issued share capital.(2) The shareholders hold their shares in the corporation for and on
behalf of the State.(3) A person ceases to be eligible to hold shares in the corporation
on ceasing to be an eligible Minister, and may thereafter exercise no rights
as a shareholder (except to transfer his or her shares as directed by the
Premier).(4) A shareholder may not sell or otherwise dispose of shares in the
corporation otherwise than to another eligible
Minister.(5) The Premier is empowered to execute a transfer of any issued
shares, whether or not the person to whom they were issued or previously
transferred consents, and whether or not the person still holds office as an
eligible Minister, and the corporation is required to register the
transfer.(6) The directors of the corporation are appointed by the voting
shareholders.(7) All decisions relating to the operation of the corporation are to
be made by or under the authority of the board of the corporation in
accordance with its statement of corporate intent.(8) The board of the corporation is accountable to the voting
shareholders in the manner set out in Part 4 of the State Owned Corporations Act 1989
and in the constitution of the corporation.(9) The corporation may issue further shares to shareholders, but no
shareholder is obliged to acquire any such further
shares.(10) Only the voting shareholders may cast
votes.(11) The voting shareholders must at all times have an equal number of
shares and be in a position to cast an equal number of
votes.4 Staff director(1) One of the directors of the corporation is to be a staff
director.(2) The staff director is to be selected by a selection committee from
members of the staff of the corporation who are nominated for
selection.(3) The selection committee is to consist of two persons nominated by
the corporation’s voting shareholders and two persons nominated by
Unions NSW.(4) The procedures for constituting the selection committee, for
nominating members of the staff and for determining other matters relating to
the selection process are to be determined by the voting
shareholders.5 Dividends(1) Every dividend is to be of such amount, and paid at such times and
in such instalments, as may be agreed between the voting shareholders and the
board, or (failing agreement) as determined under subclause
(2).(2) In the event of a failure to agree, the voting shareholders may,
by written notice to the board, determine the matter, and the board must act
in conformity with the determination.(3) Before giving such a notice, the voting shareholders are required
to consult the board as to the matters to be referred to in the
notice.6 Subsidiaries(1) The corporation may not form, participate in the formation or
acquire subsidiaries without the prior written approval of the voting
shareholders.(2) The corporation must ensure that the constitutions of its
subsidiaries at all times contain provisions to the effect of those required
by Schedule 3 to the State Owned
Corporations Act 1989.(3) The corporation must, to the maximum extent practicable, ensure
that every subsidiary complies with its constitution and with the requirements
1989.Schedule 3 Provisions to be included in constitutions of
subsidiaries of company SOCs(Section 13)Provisions to the effect of the following provisions are to be
included in the constitution of each subsidiary of a company SOC. Words and
expressions used in these provisions have the same meanings as in the State Owned Corporations Act
inconsistent with the provisions in Schedule 3 to the State Owned Corporations Act 1989,
provisions of the constitution of the subsidiary.(2) The subsidiary is expressly prohibited from exercising any power
of the subsidiary in contravention of any requirement of or under section 19
1989.3 Shareholders(1) Those shareholders in the subsidiary consisting of eligible
Ministers (if any) hold their shares in the subsidiary for and on behalf of
the State.(2) Such a person ceases to be eligible to hold shares in the
subsidiary on ceasing to be an eligible Minister, and may thereafter exercise
no rights as a shareholder (except to transfer his or her shares as directed
by the Premier).(3) Such a shareholder may not sell or otherwise dispose of shares in
the subsidiary otherwise than to an eligible Minister or to the State owned
corporation or a subsidiary of the State owned
corporation.(4) The Premier is empowered to execute a transfer of any shares that
were issued or transferred to an eligible Minister, whether or not the person
to whom they were issued or previously transferred consents, and whether or
not the person still holds office as an eligible Minister, and the subsidiary
is required to register the transfer.(5) The directors of the subsidiary are appointed by the shareholders
of the subsidiary, but no such director may be appointed except with the prior
approval of the voting shareholders of the State owned
corporation.(6) All decisions relating to the operation of the subsidiary are to
be made by or under the authority of the board of the subsidiary in accordance
with the statement of corporate intent of the State owned
corporation.(7) The board of the subsidiary is accountable to the voting
and in the constitution of the subsidiary.(8) The subsidiary may issue further shares to its shareholders, but
no shareholder is obliged to acquire any such further
shares.(9) Shares may not be issued or transferred except with the prior
written approval of the voting shareholders of the State owned corporation or
by the Premier under subclause (4).4 Subsidiaries(1) The subsidiary may not form, participate in the formation of or
shareholders of the State owned corporation.(2) The subsidiary must ensure that the constitutions of each of its
Corporations Act 1989.(3) The subsidiary must, to the maximum extent practicable, ensure
that each of its subsidiaries complies with its constitution and with the
requirements of the State Owned
Corporations Act 1989.Schedule 4 Provisions relating to certain staff(Section 34)1 DefinitionsIn this Schedule:Department
includes an Administrative Office.eligible
employee means an employee of a State owned corporation who,
immediately before becoming such an employee, was a public servant or an
officer or employee of a public authority declared by an Act of Parliament or
the relevant foundation charter to be an authority to which this Schedule
applies.State owned
corporation includes a subsidiary of a State owned
corporation.superannuation
or under an Act.2 Superannuation(1) An eligible employee:(a) may continue to contribute to any superannuation scheme to which
he or she was a contributor immediately before becoming an eligible employee,
as if he or she had continued to be such a contributor during service
with the State owned corporation.(2) Service by the eligible employee with the corporation is to be
purposes of any law under which the officer continues to contribute to the
conferred.(3) The eligible employee is to be regarded as an officer or employee,
and the corporation is to be regarded as the employer, for the purposes of the
scheme.(4) This clause ceases to apply to the eligible employee if he or she
employee is not prevented from receiving a resignation benefit from the first
superannuation scheme.3 LeaveAn eligible employee retains any rights to annual leave, extended
service leave and sick leave accrued or accruing in his or her previous
employment.4 No dual benefitsAn eligible employee is not entitled to claim, both under this Act
service.5 Former public servants may apply for positions in the
Public Service(1) An eligible employee who, immediately before becoming an employee
of the State owned corporation, was a public servant may, within the following
period of 3 years, apply for a position in the Public Service as if the
officer were still a public servant.(2) An eligible employee who applies for such a position, or who is
appointed to or employed in such a position, is, for the purposes of the
1988 and the Industrial
Relations Act 1996, to be taken to be a public servant in
relation to the application, appointment or
employment.(3) There is no right of appeal under Part 7 of Chapter 2 of the
1996:(a) for a person against the filling of a position in the Public
Service by an eligible employee, or
(b) for an eligible employee against the filling of a position in the
Public Service by another person.
Schedule 5 Statutory SOCs(Sections 3, 20A, 20B)Essential EnergyDelta ElectricityAusgridEraring EnergyHunter Water CorporationEndeavour EnergyLandcomMacquarie GenerationNewcastle Port CorporationPort Kembla Port CorporationState Water CorporationSuperannuation Administration CorporationSydney Ports CorporationSydney Water CorporationTransGridForestry CorporationSchedule 6 Provisions to be included in constitution of
statutory SOCs(Section 20Q)Provisions to the effect of the following provisions are to be
included in the constitution of a statutory SOC. Words and expressions used in
inconsistent with the provisions in Schedule 6 to the State Owned Corporations Act 1989,
of the corporation in contravention of any requirement of or under section 20X
or 20Y of the State Owned Corporations Act
shares, whether or not the person still holds office as an eligible Minister,
and the corporation is required to register the
transfer.(6) The board of the corporation is accountable to the voting
and in the constitution of the corporation.(7) The corporation may issue further shares to shareholders, but no
shares.(8) Only the voting shareholders may cast
votes.(9) The voting shareholders must at all times have an equal number of
votes.4 Subsidiaries(1) The corporation may not form, participate in the formation of or
by Schedule 7 to the State Owned
that every subsidiary complies with its constitution (if any) and with the
Corporations Act 1989.Schedule 7 Provisions to be included in constitutions of
subsidiaries of statutory SOCs(Section 20R)Provisions to the effect of the following provisions are to be
included in the constitution of each subsidiary of a statutory SOC. Words and
inconsistent with the provisions in Schedule 7 to the State Owned Corporations Act 1989,
of the subsidiary in contravention of any requirement of or under section 20X
is required to register the transfer.(5) All decisions relating to the operation of the subsidiary are to
be made by or under the authority of the board of the
subsidiary.(6) The board of the subsidiary is accountable to the voting
and in the constitution of the subsidiary.(7) The subsidiary may issue further shares to its shareholders, but
shares.(8) Shares may not be issued or transferred except with the prior
that each of its subsidiaries complies with its constitution (if any) and with
the requirements of the State Owned
Corporations Act 1989.Schedule 8 Constitution and procedure of boards of statutory
SOCs(Section 20J)1 Application of this Schedule(1) This Schedule applies in relation to the board of each statutory
SOC (referred to in this Schedule as the board and the SOC
respectively).(2) This Schedule applies only to the extent that the constitution of
the SOC do not make provision for any matter dealt with in this Schedule.
However, the constitution cannot override clause 5 or
7.2 Chairperson(1) Of the directors of the SOC, one is (in and by the
director’s instrument of appointment as director or in and by another
of the board.(2) The voting shareholders may remove a director from the office of
Chairperson of the SOC at any time for any or no reason and without
notice.(3) A person who is a director and Chairperson of the SOC vacates
office as Chairperson in the circumstances set out in the constitution of the
SOC or if the person:(a) is removed from that office by the voting shareholders,
(b) resigns that office by letter addressed to the voting
3 Deputies(1) The voting shareholders may, from time to time, appoint a person
to be the deputy of a director of the SOC, and the voting shareholders may
revoke any such appointment.(2) In the absence of a director of the SOC, the director’s
deputy:(a) is, if available, to act in the place of the director,
(b) while so acting, has all the functions of the director and is
taken to be a director of the SOC.
(3) The deputy of a director of the SOC who is Chairperson of the
board does not have the director’s functions as Chairperson, unless the
constitution of the SOC provide for this to happen.(4) A person while acting in the place of a director of the SOC is
allowances) as the voting shareholders may from time to time determine in
respect of the person.4 Staff director(1) This clause applies to the manner of selecting the staff director
of the SOC in the absence of relevant procedures in the SOC’s foundation
charter.(2) The staff director is to be selected by a selection committee from
members of the staff of the SOC who are nominated for
the SOC’s voting shareholders and two persons nominated by Unions
NSW.(4) The procedures for constituting the selection committee, for
the selection process are to be determined by regulations under this Act or
(subject to any such regulations) by the voting
shareholders.5 Term of office of directorsSubject to this Schedule, a director of the SOC holds office for
such period (not exceeding 5 years) as may be specified in the
director’s instrument of appointment.6 RemunerationA director of the SOC is entitled to be paid such remuneration
(including travelling and subsistence allowances) as the voting shareholders
may from time to time determine.7 Vacancy in office of director(1) The office of a director of a SOC becomes vacant in the
circumstances set out in the constitution of the SOC or if the
director:(a) dies, or
(c) resigns the office by letter addressed to the voting shareholders,
reasonable notice has been given to the director personally or in the ordinary
course of post, except on leave granted by the board or unless, before the end
of 4 weeks after the last of those meetings, the director is excused by the
board for having been absent from those meetings, or
(2) The Governor, on the recommendation of the voting shareholders,
may remove a director of the SOC from office at any time for any or no reason
and without notice.8 Filling of vacancyIf the office of a director of the SOC becomes vacant, a person
is, subject to this Act and the constitution of the SOC, to be appointed to
fill the vacancy.9 Effect of certain other Acts(1) The Public Sector Management Act
1988 does not apply to the appointment of a director of the
SOC. A director is not, as a director, subject to that Act (except Part
office and also the office of a director or from accepting any remuneration
payable to the person under this Act as such a
director.10 General procedureThe procedure for the calling of meetings of the board and for the
conduct of business at those meetings is, subject to this Act, the regulations
and the constitution of the SOC, to be as determined by the
board.11 QuorumThe quorum for a meeting of the board is, subject to the
constitution of the SOC, a majority of the directors for the time
being.12 Presiding director(1) The Chairperson of the board or, in the absence of the
Chairperson, another director elected to chair the meeting by the directors
present is (subject to the constitution of the SOC) to preside at a meeting of
the board.(2) The person presiding at any meeting of the board has (subject to
the constitution of the SOC) a deliberative vote and, in the event of an
of the board at which a quorum is present is (subject to the constitution of
the SOC) the decision of the board.14 Transaction of business otherwise than at ordinary
the circulation of papers among all the directors of the board for the time
being. A resolution approved in writing by a majority of those members is
meeting at which directors (or some directors) participate by telephone,
closed circuit television or other means, but only if any director who speaks
directors.(3) For the purposes of:(a) the approval of a resolution under subclause (1),
the Chairperson and director have the same voting rights as they have at
regulations and the constitution of the SOC, to be recorded in the minutes of
the board.(5) Papers may be circulated among directors for the purposes of
concerned.15 First meetingThe voting shareholders may call the first meeting of the board in
such manner as they think fit.Schedule 9 Chief executive officers of statutory
SOCs(Section 20K)1 Term of officeSubject to this Schedule, the chief executive officer of a
statutory SOC holds office for such period (not exceeding 5 years) as may be
specified in the chief executive officer’s instrument of
appointment.2 Conditions of employmentThe board of a statutory SOC may, with the approval of the
portfolio Minister, fix the conditions of employment of the chief executive
officer in so far as they are not fixed by or under any other Act or
law.3 RemunerationThe chief executive officer of a statutory SOC is entitled to be
the portfolio Minister may from time to time determine after considering
advice from the board.4 Performance agreementsThe board of a statutory SOC may require the chief executive
officer to enter into performance agreements.5 Acting chief executive officer(1) The portfolio Minister may, from time to time, appoint a person to
act in the office of chief executive officer of a statutory SOC during the
illness or absence of the chief executive officer. The person, while so
acting, has all the functions of the chief executive officer and is taken to
be the chief executive officer.(2) The portfolio Minister may remove a person from any office, to
which the person was appointed under this clause, at any time for any or no
reason and without notice.(3) A person while acting in the office of a chief executive officer
is entitled to be paid such remuneration (including travelling and subsistence
allowances) as the portfolio Minister may from time to time determine in
respect of the person.(4) For the purposes of this clause, a vacancy in the office of a
chief executive officer is regarded as an absence from office of the chief
executive officer.6 Removal from officeThe Governor, on the recommendation of the portfolio Minister, may
remove the chief executive officer of a statutory SOC from office at any time
for any or no reason and without notice. Such a removal cannot be effected
unless it is recommended by the board.Schedule 10 Duties and liabilities of directors and other
officers(Section 33A)Part 1 Statutory SOCs1 Disclosure of interests by directors(1) If a director of a statutory SOC has a direct or indirect interest
in a matter being considered, or about to be considered, by the board, the
director must disclose the nature of the interest to a meeting of the board as
soon as practicable after the relevant facts come to the director’s
knowledge.Maximum penalty: 100 penalty
units.(2) The disclosure must be recorded in the board’s
minutes.2 Voting by interested director(1) A director of a statutory SOC who has a material personal interest
in a matter that is being considered by the board must not:(a) vote on the matter, or
(b) vote on a proposed resolution (a related
resolution) under subclause (2) in relation to the matter (whether
in relation to the director or another director), or
(c) be present while the matter, or a related resolution, is being
considered by the board, or
(d) otherwise take part in any decision of the board in relation to
the matter or a related resolution.
units.(2) Subclause (1) does not apply to the matter if the board has at any
time passed a resolution that:(a) specifies the director, the interest and the matter,
(b) states that the directors voting for the resolution are satisfied
that the interest should not disqualify the director from considering or
voting on the matter.
(3) In determining whether a quorum is present at a meeting of the
board during a consideration of such a matter by the board, only those
directors are regarded as present who are entitled to vote on any motion that
may be moved in relation to the matter.(4) The voting shareholders may, by each signing consent to a proposed
resolution, deal with a matter if the board cannot deal with it because of
subclause (3).3 Duty and liability of certain officers of statutory
SOC(1) In this clause:officer of a statutory SOC
(c) another person who is concerned, or takes part, in the SOC’s
(2) An officer of a statutory SOC must act honestly in the exercise of
powers, and discharge of functions, as an officer of the SOC.Maximum penalty:(a) if the contravention is committed with intent to deceive or
defraud the SOC, creditors of the SOC or creditors of another person or for
another fraudulent purpose—500 penalty units or imprisonment for 5
(3) In the exercise of powers and the discharge of functions, an
officer of a statutory SOC must exercise the degree of care and diligence that
a reasonable person in a like position in a statutory SOC would exercise in
the statutory SOC’s circumstances.Maximum penalty: 100 penalty
units.(4) An officer of a statutory SOC, or a person who has been an officer
of a statutory SOC, must not make improper use of information acquired because
of his or her position as an officer of the SOC:(a) to gain, directly or indirectly, an advantage for himself or
years.(5) An officer of a statutory SOC must not make improper use of his or
her position as an officer of the SOC:(a) to gain, directly or indirectly, an advantage for himself or
herself or another person, or
years.(6) If a person contravenes this clause in relation to a statutory
SOC, the statutory SOC may recover from the person as a debt due to the
statutory SOC:(a) if the person or another person made a profit because of the
(b) if the statutory SOC suffered loss or damage because of the
(7) An amount may be recovered from the person under subclause (6)
contravention.(8) Subclause (6) is in addition to, and does not limit, the Confiscation of Proceeds of Crime Act
1989.(9) In determining for the purposes of subclause (3) the degree of
care and diligence that a reasonable person in a like position in a statutory
SOC would exercise in the circumstances of the statutory SOC concerned, regard
must be had to:(a) the fact that the person is an officer of a statutory SOC,
(c) relevant matters required or permitted to be done under this Act
in relation to the SOC,
including, for example, any relevant directions, notifications or
approvals given to the SOC by the SOC’s voting shareholders or portfolio
Minister.(10) Subclause (9) does not limit the matters to which regard may be
had for the purposes of subclause (3).(11) This clause:(a) is in addition to, and does not limit, any rule of law relating to
the duty or liability of a person because of the person’s office in
relation to a corporation, and
(b) does not prevent civil proceedings being instituted for a breach
of the duty or the liability.
4 Prohibition on loans to directors(1) A statutory SOC must not, whether directly or indirectly:(a) make a loan to a director, a spouse or de facto partner, of a
director or a relative of a director, spouse or de facto partner,
(b) give a guarantee or provide security in connection with a loan
made to a director, a spouse or de facto partner, of a director or a relative
of a director, spouse or de facto partner.
1987.(2) Subclause (1) does not apply to the entering into by the SOC of an
instrument with a person mentioned in subclause (1) if the instrument is
entered into on the same terms as similar instruments (if any) are entered
into by the SOC with members of the public.(3) A director of a statutory SOC who is knowingly concerned in a
contravention of subclause (1) by the SOC (whether or not in relation to the
director) commits an offence.Maximum penalty: 100 penalty
units.(4) In this clause:relative means:(a) a parent or remoter lineal ancestor, or
5 Statutory SOC not to indemnify officers(1) A statutory SOC must not:(a) indemnify a person who is or has been an officer of the SOC
against a liability incurred as an officer, or
(b) exempt a person who is or has been an officer of the SOC from a
liability incurred as an officer.
(2) An instrument is void so far as it provides for the statutory SOC
to do something that subclause (1) prohibits.(3) Subclause (1) does not prevent the statutory SOC from indemnifying
a person against civil liability (other than a liability to the SOC or a
subsidiary of the SOC) unless the liability arises out of conduct involving a
lack of good faith.(4) Subclause (1) does not prevent the statutory SOC from indemnifying
a person against a liability for costs and expenses incurred by the
person:(a) in defending a proceeding, whether civil or criminal, in which
judgment is given in favour of the person or in which the person is acquitted,
(b) in connection with an application in relation to a proceeding in
which relief is granted to the person by a court.
(5) The statutory SOC may give an indemnity mentioned in subclause (3)
or (4) only with the prior approval of the voting
shareholders.(6) In this clause:indemnify includes
indemnify indirectly through one or more interposed entities.officer of a statutory SOC
6 Statutory SOC not to pay premiums for certain liabilities
of officers(1) A statutory SOC must not pay, or agree to pay, a premium in
relation to a contract insuring a person who is or has been an officer of the
SOC against a liability:(a) incurred by the person as an officer, and
(b) arising out of conduct involving:(i) a wilful breach of duty in relation to the SOC,
(ii) without limiting subparagraph (i), a contravention of clause 3 (4)
or (5).
(2) Subclause (1) does not apply to a liability for costs and expenses
incurred by a person in defending proceedings, whether civil or criminal, and
whatever their outcome.(3) An instrument is void so far as it insures a person against a
liability in contravention of subclause (1).(4) In this clause:officer of a statutory SOC
includes pay indirectly through one or more interposed
entities.7 Director’s duty to prevent insolvent
trading(1) If:(a) immediately before a statutory SOC incurs a debt:(i) there are reasonable grounds to suspect that the SOC will not be
able to pay all its debts as and when they become due, or
(ii) there are reasonable grounds to suspect that, if the SOC incurs
the debt, it will not be able to pay all its debts as and when they become
(b) the SOC is, or later becomes, unable to pay all its debts as and
when they become due,
a person who is a director of the SOC, or takes part in the SOC’s
management, at the time when the debt is incurred commits an
offence.Maximum penalty: 100 penalty units or imprisonment for 1
year.(2) In a proceeding against a person for an offence against this
clause, it is a defence if it is proved:(a) that the debt was incurred without the person’s express or
implied authority or consent, or
(b) that, at the time when the debt was incurred, the person did not
have reasonable cause to suspect:(i) that the SOC would not be able to pay all its debts as and when
they became due, or
(ii) that, if the SOC incurred that debt, it would not be able to pay
all its debts as and when they became due, or
(c) that the person took all reasonable steps to prevent the SOC from
incurring the debt, or
(d) in the case of a director—that the person did not take part
at the time in the SOC’s management because of illness or for some other
8 Court may order compensation(1) If a person is found guilty of an offence against clause 7
(Director’s duty to prevent insolvent trading) in relation to the
incurring of a debt by a statutory SOC, the Supreme Court may declare that the
person is to be personally responsible without any limitation of liability for
the payment to the SOC of the amount required to satisfy the part of the
SOC’s debts that the court considers proper.(2) This clause does not affect any rights of a person to indemnity,
subrogation or contribution.(3) This clause:(a) is in addition to, and does not limit, any rule of law about the
duty or liability of a person because of the person’s office in relation
to a corporation, and
(b) does not prevent proceedings being instituted for a breach of the
duty or the liability.
9 Examination of persons concerned with statutory
SOCs(1) If it appears to the Attorney General that:(a) a person who has been concerned, or taken part, in a statutory
SOC’s management, administration or affairs has been, or may have been,
guilty of fraud, negligence, default, breach of trust or breach of duty or
other misconduct in relation to the SOC, or
(b) a person may be capable of giving information in relation to a
statutory SOC’s management, administration or
the Attorney General may apply to the Supreme Court or the District Court
for an order under this clause in relation to the
person.(2) The court may order that the person attend before the court at a
time and place fixed by the court to be examined on oath on any matters
relating to the SOC’s management, administration or
affairs.(3) The examination of the person is to be held in public except so
far as the court considers that, because of special circumstances, it is
desirable to hold the examination in private.(4) The court may give directions about:(a) the matters to be inquired into at the examination,
(b) the procedures to be followed at the examination (including, if
the examination is to be held in private, the persons who may be
(5) The person must not fail, without reasonable excuse:(a) to attend as required by the order, or
(b) to continue to attend as required by the court until the
Maximum penalty: 200 penalty units or imprisonment for 2
years.(6) The person must not fail to take an oath or make an affirmation at
the examination.Maximum penalty: 200 penalty units or imprisonment for 2
years.(7) The person must not fail to answer a question that the person is
directed by the court to answer.Maximum penalty: 200 penalty units or imprisonment for 2
years.(8) The person may be directed by the court (whether in the order or
by subsequent direction) to produce any document in the person’s
possession, or under the person’s control, relevant to the matters on
which the person is to be, or is being, examined.(9) The person must not, without reasonable excuse, contravene a
direction under subclause (8).Maximum penalty: 200 penalty units or imprisonment for 2
years.(10) If the court directs the person to produce a document and the
person has a lien on the document, the production of the document does not
prejudice the lien.(11) The person must not knowingly make a statement at the examination
that is false or misleading in a material particular.Maximum penalty: 500 penalty units or imprisonment for 5
years.(12) The person is not excused from answering a question put to the
person at the examination on the ground that the answer might tend to
incriminate the person or make the person liable to a
penalty.(13) If:(a) before answering a question put to the person at the examination,
the person claims that the answer might tend to incriminate the person or make
the person liable to a penalty, and
(b) the answer might in fact tend to incriminate the person or make
the person liable to a penalty,
the answer is not admissible in evidence against the person in:(c) a criminal proceeding, or
(d) a proceeding for the imposition of a
other than a proceeding for an offence against this clause or another
proceeding in relation to the falsity of the
answer.(14) The court may order the questions put to the person and the
answers given by the person at the examination to be recorded in writing and
may require the person to sign the record.(15) Subject to subclause (13), any written record of the examination
signed by the person, or any transcript of the examination that is
authenticated by the signature of the examiner, may be used in evidence in any
legal proceeding against the person.(16) The person may, at his or her own expense, employ counsel or a
solicitor, and the counsel or solicitor may put to the person questions that
the court considers just for the purpose of enabling the person to explain or
qualify any answers given by the person.(17) The court may adjourn the examination from time to
time.(18) If the court is satisfied that the order for the examination of
the person was obtained without reasonable cause, the court may order the
whole or any part of the costs incurred by the person be paid by the
State.10 Power to grant relief(1) This clause applies to a director, the chief executive officer or
an employee of a statutory SOC.(2) If, in a proceeding against a person to whom this clause applies
for negligence, default, breach of trust or breach of duty as a person to whom
this clause applies, it appears to the court that:(a) the person is or may be liable for the negligence, default or
breach, but
(b) the person has acted honestly and, having regard to all the
circumstances of the case (including circumstances connected with the
person’s appointment) the person ought fairly to be excused for the
negligence, default or breach,
the court may relieve the person (in whole or part) from liability on
terms that the court considers appropriate.(3) If a person to whom this clause applies believes that a claim will
or might be made against the person for negligence, default, breach of trust
or breach of duty as a person to whom this clause applies, the person may
apply to the Supreme Court or the District Court for
relief.(4) The court has the same power to relieve the person as it would
have if a proceeding had been brought against the person in the court for the
negligence, default or breach.(5) If:(a) a proceeding mentioned in subclause (2) is being tried by a Judge
with a jury, and
(b) the Judge, after hearing the evidence, is satisfied that the
defendant ought under that subclause be relieved (in whole or part) from the
liability sought to be enforced against the person,
the Judge may withdraw the case (in whole or part) from the jury and
direct that judgment be entered for the defendant on the terms (as to costs or
otherwise) that the Judge considers appropriate.11 False or misleading information or documents(1) In this clause:officer of a statutory SOC
(2) An officer of a statutory SOC must not:(a) make a statement concerning the affairs of the SOC to another
officer or the voting shareholders that the first officer knows is false or
misleading in a material particular, or
(b) omit from a statement concerning the SOC’s affairs made to
another officer or the voting shareholders anything without which the
statement is, to the first officer’s knowledge, misleading in a material
(3) An information or complaint against a person for an offence
against subclause (2) (a) or (b) is sufficient if it states that the
information given was false or misleading to the person’s
knowledge.(4) An officer of a statutory SOC must not give to another officer or
the voting shareholders a document containing information that the first
officer knows is false, misleading or incomplete in a material particular
without:(a) indicating to the recipient that the document is false, misleading
or incomplete and the respect in which the document is false, misleading or
(b) giving the correct information to the recipient if the first
officer has, or can reasonably obtain, the correct
Maximum penalty:(a) if the contravention is committed with intent to deceive or
12 Notice of suspected insolvency otherwise than because of
direction or notification(1) If:(a) a statutory SOC’s board suspects that the SOC or a
subsidiary of the SOC is, may be, will or may become insolvent,
(b) in the board’s opinion, compliance with a direction or
notification given by the voting shareholders is not or would not be the cause
or a substantial cause of the suspected insolvency,
the board must immediately give written notice to the voting shareholders
of:(c) the suspicion, and
(2) The notice must state that it is given under this
clause.(3) If the voting shareholders are satisfied that the board’s
suspicion is well-founded, the voting shareholders must immediately give the
board the written directions that the voting shareholders consider necessary
or desirable, including any directions necessary or desirable to
ensure:(a) that the statutory SOC or subsidiary does not incur further debts,
(b) that the statutory SOC or subsidiary will be able to pay all its
debts as and when they become due.
(4) Without limiting subclause (3), a direction under this clause may
require the statutory SOC or any of its subsidiaries to cease or limit
particular activities.(5) The board must ensure that a direction under this clause is
complied with in relation to the SOC and must, as far as practicable, ensure
that it is complied with in relation to its
subsidiaries.(6) This clause is in addition to, and does not limit, another
provision of this Act or another law.Part 2 Company SOCs13 Application of Corporations Law to officers of
company SOC(1) In determining for the purposes of the Corporations Law the degree of care
and diligence that a reasonable person in a like position in a company SOC
would exercise in the circumstances of the company SOC concerned, regard must
be had to:(a) the application of this Act to the SOC, and
(b) relevant matters required or permitted to be done under this Act
Minister.(2) This section has effect despite the Corporations
Law.Part 3 SOCs generally14 Application of Corporations Law to officers of SOC
subsidiaries(1) In determining for the purposes of the Corporations Law the degree of care
and diligence that a reasonable person in a like position in a subsidiary of a
SOC would exercise in the circumstances of the subsidiary concerned, regard
must be had to:(a) the application of this Act to the SOC and subsidiary,
in relation to the SOC and subsidiary,
Law.Schedule 11 Savings and transitional provisions(Section 39)Part 1 General1 Regulations(1) The regulations may contain provisions of a savings or
transitional nature consequent on the enactment of:• State Owned Corporations Amendment Act
• State Revenue Legislation
State Owned Corporations Amendment Act
19952 Staff director (Hunter Water Corporation
Limited)(1) This Act does not require the articles of association of Hunter
Water Corporation Limited to be altered during the first 2 months after the
commencement of the amendment to Schedule 2 made by the State
Owned Corporations Amendment Act
1995.(2) The requirement for the appointment of a staff director for Hunter
Water Corporation Limited need not be complied with within 6 months after the
commencement of that amendment.3 Staff director (Sydney Water Corporation
Limited)(1) Clause 1A of Part 2 of Schedule 2 as inserted by the
State Owned Corporations Amendment Act 1995 does
not apply to Sydney Water Corporation Limited.(2) This Act does not require the articles of association of Sydney
Water Corporation Limited to be altered during the first 6 months after the
commencement of the amendment made to Schedule 3 to the Water Board (Corporatisation) Act
1994 by the State Owned Corporations Amendment
Act 1995.(3) Those articles may provide that the requirement for a staff
director does not take effect until there is a suitable vacancy on the board.
However, the requirement for the appointment of a staff director must be
complied with within two years after the commencement of that
amendment.Part 3 Provisions consequent on enactment of Corporations (Consequential Amendments) Act
20014 Memorandum and articles of association of SOC or its
subsidiaries(1) Any memorandum and articles of association of a SOC or subsidiary
of a SOC that were in force immediately before the commencement are taken
together to make up its constitution for the purposes of this Act after that
commencement.(2) The repeal and re-enactment of Schedules 2, 3, 6 and 7 to this Act
by the Corporations (Consequential
Amendments) Act 2001 does not affect any obligation that a SOC
or a subsidiary of a SOC may have had immediately before the commencement to
include (or to ensure that another body include) certain provisions in a
memorandum and articles of association.(3) In this clause, commencement means the
commencement of the amendments made to this Act by the Corporations (Consequential Amendments) Act
2001.Part 4 Provisions consequent on enactment of State Revenue Legislation Amendment Act
20055 Validation for tax-equivalent paymentsAnything done or omitted to be done that would have been validly
done or omitted if the amendments to sections 15 and 20T made by the State Revenue Legislation Amendment Act
2005 had been in force at the time that it was done or omitted
is validated.Historical notesThe following abbreviations are used in the Historical notes:
[23]; 2005 No 51, Sch 6 [5] [6].