Document ID: chunk:federal_register_of_legislation:F2023L01564:reg:5
Version: federal_register_of_legislation:F2023L01564
Segment Type: reg
Provision Reference: reg 5
Character Range: 2753–3973

5  Simplified outline of this instrument

      The Act established the Corporation to facilitate increased flows of finance into priority areas of the Australian economy. The priority areas are declared in the National Reconstruction Fund Corporation (Priority Areas) Declaration 2023.
      The Act:
             (a) permits the Ministers, by legislative instrument, to give the Board directions about the performance of the Corporation's investment functions or the exercise of the Corporation's investment powers (or both); and
             (b) requires the Ministers to give at least one such direction.
      The directions together constitute the Investment Mandate. This instrument sets out such directions.
      The Corporation is bound by the Investment Mandate. The Board must take all reasonable steps to ensure that the Corporation and its subsidiaries comply with the Investment Mandate. The Board can be directed, under subsection 74(3) of the Act, to:
             (a) explain to the Ministers any failure to comply with the Investment Mandate; and
             (b) take specified action to ensure compliance.
      The Board's investment policies must also be consistent with the Investment Mandate.