Document ID: chunk:federal_register_of_legislation:C2006C00145:clause:2_11ca:p1
Version: federal_register_of_legislation:C2006C00145
Segment Type: clause
Provision Reference: sch 2 cl 11CA (pt 1/2)
Character Range: 56902–59438

11CA  APRA may give directions in certain circumstances

 (1) APRA may give a body corporate that is an ADI or an authorised NOHC a direction of a kind specified in subsection (2) if APRA considers that:
 (a) the body corporate has contravened a prudential regulation or a prudential standard; or
 (b) if the body corporate is an ADI—the direction is necessary in the interests of depositors of the ADI; or
 (c) if the body corporate is an authorised NOHC—the direction is necessary in the interests of depositors of any ADI that is a subsidiary of the body corporate.
The direction is to be by notice in writing given to the body corporate.

 (2) The kinds of direction the body corporate may be given are as follows:
 (a) a direction to comply with the whole or a part of a prudential regulation or a prudential standard;
 (b) a direction to order an audit of the affairs of the body corporate, at the expense of the body corporate, by an auditor chosen by APRA;
 (c) a direction to do all or any of the following:
 (i) remove a director, secretary, executive officer or employee of the body corporate from office;
 (ii) ensure a director, secretary, executive officer or employee of the body corporate does not take part in the management or conduct of the business of the body corporate except as permitted by APRA;
 (iii) appoint a person or persons as a director, secretary, executive officer or employee of the body corporate for such term as APRA directs;
 (d) a direction to remove any auditor of the body corporate from office and appoint another auditor to hold office for such term as APRA directs;
 (e) a direction not to give any financial accommodation to any person;
 (f) a direction not to accept the deposit of any amount;
 (g) a direction not to borrow any amount;
 (h) a direction not to accept any payment on account of share capital, except payments in respect of calls that fell due before the direction was given;
 (i) a direction not to repay any amount paid on shares;
 (j) a direction not to pay a dividend on any shares;
 (k) a direction not to repay any money on deposit or advance;
 (l) a direction not to pay or transfer any amount to any person, or create an obligation (contingent or otherwise) to do so;
 (m) a direction not to undertake any financial obligation (contingent or otherwise) on behalf of any other person;
 (n) any other direction as to the way in which the affairs of the body corporate are to be conducted or not conducted.
A direction under paragraph (l) not to pay any amount does not