Australian Capital Territory Bills Explanatory Statements
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FINANCIAL MANAGEMENT (BOARD COMPOSITION) AMENDMENT BILL 2009
2009
THE
LEGISLATIVE ASSEMBLY FOR THE
AUSTRALIAN CAPITAL
TERRITORY
FINANCIAL MANAGEMENT
(BOARD COMPOSITION)
AMENDMENT BILL
2009
EXPLANATORY
STATEMENT
Authorised by:
Mr Brendan Smyth MLA
FINANCIAL MANAGEMENT (BOARD
COMPOSITION)
AMENDMENT BILL
2009
Overview of Bill
The purpose of this Bill is to put in place certain requirements relating
to the appointment of public servants to boards of territory
authorities.
Notes on key
clauses
Clause 4
This clause provides, in section 4A, that the maximum number of public
servants who shall be appointed to a board of an authority shall not exceed 20
per cent of the total number of members who are appointed to that board.
This clause also recognises that there may be situations where special
circumstances apply with respect to a particular board. Hence, section 4B
provides that, where the Minister believes there are sound reasons for
appointing more public servants than would be permitted by the ceiling of 20 per
cent established in section 4A, the Minister shall bring a proposal to the
Legislative Assembly. The Legislative Assembly shall determine whether the
circumstances warrant the ceiling being exceeded.
An instance where
special circumstances would be applied is in the instance of Rhodium Asset
Solutions. The ACT Government decided that this entity would be wound up. As a
consequence, the Government decided to appoint three public servants to comprise
the board during the period in which this entity is wound up.
Clause 5
Clause 5 provides that no public servant who is appointed to a territory
authority shall be appointed as either the chair or the deputy
chair.
Clause 6
Clause 6 will revoke Notifiable Instrument NI2009-310, which the Minister
for Tourism, Sport and Recreation promulgated on 29 June 2009.
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