Document ID: chunk:federal_register_of_legislation:C2004A03591:body:0:p10
Version: federal_register_of_legislation:C2004A03591
Segment Type: other
Provision Reference: 
Character Range: 23437–26219

an amount determined by the Board to be the proportion" and substituting "the Commonwealth Bank the amount".

Powers of Development Bank
23. Section 74 of the Principal Act is amended by omitting paragraphs (2) (d) to (i), inclusive, and substituting the following paragraphs:
    "(d) to subscribe for, buy, sell, discount, re-discount, redeem and otherwise deal in bills of exchange, promissory notes, Treasury notes and other securities issued by the Commonwealth, and other securities and instruments;
    (e) to establish credits and engage in hire-purchase and lease financing and factoring;
    (f) to issue bills and drafts and effect transfers of money;
    (g) to guarantee the due fulfilment of contracts and obligations by any person or body corporate;
    (h) to underwrite loans and issues of capital;
    (j) to join in the formation of a company;
    (k) to subscribe for, buy, or otherwise acquire, and to dispose of, shares, stocks, debenture stocks and other securities;
    (m) to enter into a partnership, or an arrangement for sharing of profits; and
    (n) to do anything incidental to any of its powers.".
24. (1) After section 77 of the Principal Act the following section is inserted:

Payment of dividends by Development Bank
"77a. (1) The Board shall, not later than 3 months after the end of each financial year, recommend in writing to the Treasurer whether the Development Bank should pay to the Commonwealth a dividend in respect of the operations of the Development Bank during that year and, if so, the amount of the dividend.
"(2) In making a recommendation, the Board shall have regard to:
    (a) the need to ensure that the Commonwealth receives a reasonable rate of return on the capital and reserves of the Development Bank;
    (b) the need to maintain the reserves of the Development Bank to support the funding requirements of small business on reasonable terms and conditions and to ensure that the level of capital and reserves of the Development Bank is appropriate having regard to the nature of its business; and

    (c) any other relevant commercial considerations.
"(3) The Treasurer shall, not later than one month after receiving the recommendation, by notice in writing given to the Board:
    (a) accept the recommendation; or
    (b) specify an amount, or a different amount, to be paid by way of dividend by the Development Bank to the Commonwealth in respect of the operations of the Development Bank during the financial year to which the recommendation relates.
"(4) Where the Board recommends payment of an amount that is less than 45% of the net profits of the Development Bank for the financial year to which the recommendation relates, the Treasurer shall not specify a different amount that is more than 45% of those