Document ID: chunk:federal_register_of_legislation:C2004A03591:body:0:p7
Version: federal_register_of_legislation:C2004A03591
Segment Type: other
Provision Reference: 
Character Range: 15739–18452

as agent in the provision of financial services, including the settlement of financial transactions;
    (zd) to subscribe for, and to hold, shares in the capital of the Savings Bank; and
    (ze) to do anything incidental to any of its powers.".
16. (1) Section 32 of the Principal Act is repealed and the following section is substituted:

Payment of dividends by Commonwealth Bank
"32. (1) The Board shall, not later than 3 months after the end of each financial year, recommend in writing to the Treasurer whether the Commonwealth Bank should pay to the Commonwealth a dividend in respect of the operations of the Commonwealth Bank and the Savings 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 Commonwealth Bank and the Savings Bank;
    (b) the need to increase the reserves of the Commonwealth Bank and the Savings Bank to fund the expansion of their activities and to enable them to comply with the capital adequacy guidelines applicable in the banking industry; and
    (c) any other relevant commercial considerations.
"(3) The Treasurer shall, not later than one month after receiving a 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 Commonwealth Bank to the Commonwealth in respect of the operations of the Commonwealth Bank and the Savings 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 sum of:
    (a) so much of the net profits of the Commonwealth Bank for the financial year to which the recommendation relates as does not comprise dividends paid to the Commonwealth Bank by the Savings Bank; and
    (b) the net profits of the Savings Bank for that year;
the Treasurer shall not specify a different amount that is more than 45% of the sum of those net profits.
"(5) In making a decision under subsection (3), the Treasurer shall have regard to the matters specified in subsection (2).
"(6) The Commonwealth Bank shall, as soon as practicable after the Treasurer makes a decision under subsection (3), pay to the Commonwealth an amount equal to:
    (a) where the Treasurer accepts the recommendation—the amount specified in the recommendation; or
    (b) in any other case—the amount specified by the Treasurer under paragraph (3) (b).".
(2) The section inserted in the Principal Act by subsection (1) applies in relation to the financial year commencing on