Document ID: chunk:federal_register_of_legislation:F2023C00394:body:0:p17
Version: federal_register_of_legislation:F2023C00394
Segment Type: other
Provision Reference: 
Character Range: 43747–46695

intervene in the activities of the Council.

Minister X is the State Minister for Local Government.  The Minister administers their portfolio through the Local Government branch of the State Department of Transport, Planning and Local Infrastructure (the Department).  As part of the Minister's role and responsibilities, Minister X is responsible for:

     • the scrutiny of councils, including municipal boundaries;

     •  making recommendations for allocation of project grants to local governments for projects;

     •  overseeing tendering processes for council services;

     •  ensuring the concerns of local governments are communicated to the State Cabinet; and

     •  the coordination of council community and infrastructure work at a State level.

The Council's primary objective is to achieve the best outcomes for the local community over the long term.  The Council is empowered by the Act to do all things necessary and convenient for the achievement of its objectives and the performance of its functions, subject to any limitations under the Act or any other legislation.

The Council is administered by 10 councillors, who are elected directly by the local community in periodic elections.  The Council's functions include raising revenue to fund its functions and activities, and planning for and providing services and facilities (including infrastructure) for the local community.  In carrying out its functions, the Council undertakes a wide range of activities including the imposition of rates and charges upon constituents, and the provision without charge of services such as parks and roads.  The day-to-day operations of the Council are carried out by council staff under the direction of its elected councillors.

The State Government has determined that it does not control the Council.

Based on the facts and circumstances above, Minister X is not a member of the key management personnel of the Council, as the Minister's role does not extend to having the authority and responsibility for planning, directing and controlling the activities of the Council itself.  Having concluded that the State Government does not control the council, Minister X's role as executor of the State Government's powers and rights over the Council cannot of itself enable Minister X to meet the definition of key management personnel of the Council.  Rather, in this example, it is the councillors and senior council staff who have the authority and responsibility for the activities of the Council (similar to a board of directors and senior management of a company).

The purpose of this Example is to assist entities with the identification of key management personnel of a not-for-profit public sector entity.  However, an entity should also consider whether Minister X, or the State Government, will otherwise meet the definition of a related party of the Council (see paragraph 9 of the Standard).

Example 5

Minister