Corporate Governance in Commonwealth Authorities and Companies

Requirement
Commonwealth Authorities
and Companies Act
Wholly-owned
Company
Partly-owned
company
Table 1: Summary of Legal Requirements that
may be applicable to CAC bodies
Authority
Pursue recovery ✗ ✗ ✗ ✗ ✓ ✗ ✗
of legally recoverable
debts where
economical to pursue
s 47
Ability to Delegate ✗ ✗ ✗ ✓ ✓ ✓ ✗
CEO powers and ss 52 s 109ZD to
functions and give & 53 s 109ZF &
instructions s 226D
Must not misapply ✗ ✗ ✓ ✗ ✓ ✓ ✗
or improperly dispose s 22(1) s 41 & 42 s 232(2) &
of, or improperly
use property
s 43 s 232(6)
Must not falsify ✗ ✗ ✓ ✗ ✓ ✓ ✗
accounts s 22(1) s 61 s 232(2)
Must not improperly ✗ ✗ ✓ ✗ ✓ ✗ ✓ ✗
use a credit card s 22(1) s 62 ss 232(2) & 232(6)
Keep accounts and ✗ ✗ ✓ ✓ ✓ ✓ ✗
records as required and s 20 s 48 ss 285 - 318
enable access to
prescribed person
Chapter 2M
Directors to have ✗ ✗ ✗ ✓ ✗ ✓ ✗
regard to sound s 10 - s 232(4)
commercial practice Wool International
Managing Director ✗ ✗ ✗ ✓ ✗ ✗ ✗
not to engage in other s 10 -
paid employment Defence
without approval Housing
Prepare Statement ✗ ✗ ✗ ✗ ✗ ✗ ✓
of Corporate Intent
for Stakeholder
2.5 to 2.7
Promote efficient, ✗ ✗ ✗ ✗ ✓ ✗ ✗
effective and ethical
use of resources
s 44
Keep stakeholder ✗ ✗ ✗ ✗ ✗ ✗ ✓
informed of risk
management strategies
4.9 to 4.12
Act honestly in the ✗ ✗ ✓ ✗ ✗ ✓ ✗
exercise of powers
and discharge of duties
s 22 (1) s 232 (2)
Exercise care and ✗ ✗ ✓ ✗ ✗ ✓ ✗
diligence in the
exercise of powers
and discharge of duties
s 22 (2) s 232 (4)
Prevent insolvent ✗ ✗ ✗ ✗ ✗ ✓ ✗
trading s 588G
CORPORATE GOVERNANCE IN COMMONWEALTH AUTHORITIES AND COMPANIES
35
Individual CAC
Enabling Legislation
Financial Management
and Accountability Act
Corporations Law
GBEs