Document ID: chunk:federal_register_of_legislation:C2023C00427:clause:2_20:p1
Version: federal_register_of_legislation:C2023C00427
Segment Type: clause
Provision Reference: sch 2 cl 20 (pt 1/2)
Character Range: 34641–37291

20  Change of profit status—modifying Medibank Private's constitution and rules

Modification of constitution
(1) If all the shares in Medibank Private are held by the Commonwealth or the holding company, Medibank Private may, in accordance with section 249B of the Corporations Act 2001, do any or all of the following:
 (a) modify its constitution so as to permit it to be conducted for profit;
 (b) modify its constitution so as to permit it to distribute profits to its shareholders;
 (c) modify its constitution so as to permit it to return capital to its shareholders.
(2) Subitem (1) has effect despite any provision of Medibank Private's constitution.

Modification of rules
(3) If all the shares in Medibank Private are held by the Commonwealth or the holding company, Medibank Private may do any or all of the following:
 (a) modify its rules so as to permit it to be conducted for profit;
 (b) modify its rules so as to permit it to distribute profits to its shareholders;
 (c) modify its rules so as to permit it to return capital to its shareholders.
(4) Subitem (3) has effect despite:
 (a) any provision of Medibank Private's constitution; or
 (b) any provision of Medibank Private's rules.
(5) The Minister for Finance may, by written notice given to Medibank Private, give directions to Medibank Private relating to the exercise of its powers under subitem (3).
(6) Medibank Private must comply with a direction under subitem (5).

Notice to contributors
(7) At least 60 days before a modification of a kind referred to in subitem (1) or (3) takes effect, Medibank Private must take all reasonable steps to ensure that the contributors to the Medibank Private fund are informed of the nature of the modification in terms that can reasonably be expected to be understood.
(8) The Minister for Finance may, by written notice given to Medibank Private, give directions to Medibank Private relating to the performance of its obligations under subitem (7).
(9) Medibank Private must comply with a direction under subitem (8).

Immunity etc.
(10) Section 169‑10 of the Private Health Insurance Act 2007 does not apply to a modification of a kind referred to in subitem (3).
(11) A modification of a kind referred to in subitem (1) or (3), or giving or complying with a direction under subitem (5) or (8):
 (a) does not result in a breach of contract; and
 (b) does not result in a contravention of:
 (i) the Competition and Consumer Act 2010; or
 (ii) a corresponding law of a State or Territory; and
 (c) does not result in a contravention of, or give rise to a liability or remedy under:
 (i) a provision of the Corporations Act 2001; or