Document ID: chunk:federal_register_of_legislation:C2020A00116:section:41:p1
Version: federal_register_of_legislation:C2020A00116
Segment Type: section
Provision Reference: s 41 (pt 1/2)
Character Range: 59625–62460

41  Foreign arrangements that are legally binding under Australian law

When Minister may make declaration
 (1) The Minister may make a declaration under subsection (2) or (3) in relation to an arrangement between a State/Territory entity and a foreign entity if:
 (a) subsection 40(1) is satisfied in relation to the arrangement; and
 (b) apart from the declaration, the arrangement would be legally binding under an Australian law.
Note 1: The Minister must take into account certain matters when making a decision to make a declaration under subsection (2) or (3) (see section 51).
Note 2: Section 44 deals with general matters about the declaration (such as revocation and giving notice to the State/Territory entity).

Declaration that arrangement is invalid and unenforceable
 (2) The Minister may make a written declaration that:
 (a) the arrangement:
 (i) is invalid and unenforceable to the specified extent and from the specified day; or
 (ii) if the arrangement was entered in contravention of subsection 36(3)—is, and is taken to have always been, invalid and unenforceable to the specified extent; and
 (b) the State/Territory entity must, within the specified period, notify the foreign entity that:
 (i) a declaration is in force under this subsection in relation to the arrangement; and
 (ii) the arrangement is invalid and unenforceable, to the specified extent;
  and give the foreign entity a copy of the declaration; and
 (c) the State/Territory entity must, as soon as practicable after complying with paragraph (b), notify the Minister, in writing, of its compliance with that paragraph; and
 (d) the State/Territory entity must not, to the specified extent and from the specified day:
 (i) give effect to the arrangement; or
 (ii) hold out, or conduct itself on the basis, that it can give effect to the arrangement; or
 (iii) hold out, or conduct itself on the basis, that the arrangement is valid or enforceable; and
 (e) the foreign entity must not, to the specified extent and from the specified day:
 (i) give effect to the arrangement in Australia; or
 (ii) hold out in Australia, or conduct itself in Australia on the basis, that it can give effect to the arrangement; or
 (iii) hold out in Australia, or conduct itself in Australia on the basis, that the arrangement is valid or enforceable.
The declaration in relation to paragraph (a) has effect accordingly.

Declaration requiring variation or termination of arrangement
 (3) The Minister may make a written declaration that:
 (a) the State/Territory entity must, within the specified period, notify the foreign entity that:
 (i) a declaration is in force under this subsection in relation to the arrangement; and
 (ii) the arrangement is required to be varied or terminated in accordance with any specified requirements;
  and give the foreign entity