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TREASURY CORPORATION (AMENDMENT) BILL 1992
NEW SOUTH WALES
EXPLANATORY NOTE
(This Explanatory Note relates
to this Bill as introduced into Parliament)
A statutory corporation may only exercise the functions that are conferred on the
corporation by Act. This may operate to prevent such a corporation pursuing the objects
for which it is established by means of a particular activity because the activity is not
specifically mentioned or contemplated in the list of functions of the corporation. The
Corporations Law specifically provides that this principle is not applicable to
companies.
The object of this Bill is to amend the Treasury Corporation Act 1983 to give the
Treasury Corporation ("TCorp") full power to engage in any activity that is in
pursuance of the objects for which it is established. This will remove the need for TCorp
to identify a specific head of power in the Act for each such activity.
At present the Act contains a list of TCorp's functions. The list is narrow and specific
and can operate to unduly restrict TCorp in its role as provider of financial services to
the public sector.
The Bill inserts new provisions which remove the need for a list of specific
functions. There will be a clear statement of the principal object for which TCorp is
established, namely, to provide financial services for or for the benefit of the
Government and public sector bodies. TCorp will have the same legal capacity, powers
and authorities as a company under the Corporations Law to pursue its objects. TCorp
will remain subject to the control and direction of the Treasurer.
A person having dealings with TCorp will be protected by new provisions that
remove the need for such a person to inquire into TCorp's power to enter into those
dealings.
The specific list of functions currently in the Act are re-enacted in the form of
examples of the activities in which TCorp can engage. Some of the existing functions
also contain restrictions on TCorp or extra powers, and these have been retained in a
new format. Neither the list of examples nor the extra powers are to be interpreted as
limiting TCorp's powers.
In addition, section 8 has been amended to confer a clear power on public authorities
and other public bodies to appoint TCorp as their agent for any purpose. A minor
consequential amendment is made to section 7 and the long title of the Act.
Clause 1 specifies the short title of the proposed Act.
Clause 2 provides for the commencement of the proposed Act on a day or days to
be appointed by proclamation.
Clause 3 is a formal provision to give effect to the amendments to the Treasury
Corporation Act 1983 specified in Schedule 1.
Schedule 1 contains the amendments to the Treasury Corporation Act 1983 described
above.