Document ID: chunk:federal_register_of_legislation:C2004Q00955:body:0:p1
Version: federal_register_of_legislation:C2004Q00955
Segment Type: other
Provision Reference: 
Character Range: 6–3104

ELIZABETH THE SECOND, by the Grace of God Queen of Australia and Her other Realms and Territories, Head of the Commonwealth:

      TO the Honourable Justice Neville John Owen

      WHEREAS it is desired to have an inquiry into certain matters relating to the failure of HIH Insurance Group ('HIH'):

      BY these Letters Patent issued in Our name by Our Governor-General of the Commonwealth of Australia on the advice of the Federal Executive Council and pursuant to the Constitution of the Commonwealth of Australia and the Royal Commissions Act 1902 and other enabling powers, We appoint you to be a Commissioner to inquire into the reasons for and the circumstances surrounding the failure of HIH prior to the appointment of the provisional liquidators on 15 March 2001.

      In particular, We direct that you inquire into:

          (a) whether, and if so the extent to which, decisions or actions of HIH or any of its directors, officers, employees, auditors, actuaries, advisers or agents:
             (i) contributed to the failure of HIH; or
             (ii) involved undesirable corporate governance practices, including any failure to make desirable disclosures regarding the financial position of HIH;
          (b) whether those decisions or actions might have constituted a breach of any law of the Commonwealth, a State or a Territory and, if so, whether the question of criminal or other legal proceedings should be referred to the relevant Commonwealth, State or Territory agency;
          (c) the appropriateness of the manner in which powers were exercised and responsibilities and obligations were discharged under Commonwealth laws;
          (d) the appropriateness of the manner in which powers were exercised and responsibilities and obligations were discharged under State or Territory laws; and
          (e) the adequacy and appropriateness of arrangements for the regulation and prudential supervision of general insurance at Commonwealth, State and Territory levels, taking into account your findings in relation to the matters referred to in the preceding paragraphs and other relevant matters; including
             (i) Commonwealth arrangements before and after the Financial System Inquiry reforms; and
             (ii) different State and Territory statutory insurance and tax regimes.

      AND We declare that, in these Letters Patent:

          'HIH Insurance Group' means HIH Insurance Ltd related bodies corporate and related entities, within the meaning of the Corporations Act 2001;

          A reference to a director, officer, employee, auditor, actuary, adviser or agent includes a reference to a former director, officer, employee, auditor, actuary, adviser or agent;

          A reference to a decision or action includes a failure to make a decision or take an action;

          A reference to the exercise of a power includes a failure to exercise a power;

          A reference to the discharge of a responsibility or obligation includes a failure to discharge a responsibility or obligation.

      AND, noting that the