New South Wales Consolidated Acts

GOVERNMENT INSURANCE OFFICE (PRIVATISATION) ACT 1991 - SCHEDULE 1

SCHEDULE 1 – Savings and transitional provisions relating to conversion of GIO into a public company

(Section 18)

1 Dissolution of GIO Board

(1) On the conversion, the GIO Board is dissolved.

(2) A person holding office as a director of the GIO Board immediately before its dissolution:

(a) ceases to hold that office, and

(b) except as provided by subclause (3), is not entitled to any remuneration or compensation because of the loss of that office.

(3) Part 8 of the Public Sector Management Act 1988 applies to a person who so ceases to hold office as a director of the GIO Board, without immediately being appointed to the service of GIO or a GIO subsidiary, in the same way as it applies to a person removed from office under that Part.

2 Application of certain provisions of Corporations Law

(1) While the State of New South Wales continues to hold all the shares in GIO (being the shares issued to the State under Part 2), sections 186 and 461 (d) of the Corporations Law do not apply in relation to GIO, and section 249 (7) of the Corporations Law applies in relation to GIO as if:

(a) the State of New South Wales were a holding company (within the meaning of section 249 (7) of the Corporations Law ) of GIO, and

(b) the Minister were a representative of the State authorised under section 249 (3) of the Corporations Law .

(2) Sections 139 (2) and (3) and 151 (5) of the Corporations Law do not apply in relation to GIO.

(3) For the purposes of section 409 of the Corporations Law , GIO is taken to be subject to the law of the Commonwealth relating to life insurance.

(4) For the purposes of Division 2 of Part 5.6 of the Corporations Law (Contributories on winding up):

(a) the State of New South Wales is not (in relation to any period before the conversion) a past member of GIO, and

(b) a person is not a past member of GIO merely because he or she was a member of the GIO Board, or acted as a member of the GIO Board, before the conversion.

(5) For the purposes of the Corporations Law , accounts and records kept under Part 3 of the Public Finance and Audit Act 1983 are, after the conversion, taken to be accounting records kept by GIO under a provision of a previous law of the State of New South Wales, being a provision corresponding to section 289 of the Corporations Law .

(6) For the purposes of the Corporations Law , a report and financial statements that were prepared under Part 3 of the Public Finance and Audit Act 1983 (or under section 11 of the GIO Act) in relation to a period and furnished to a Minister on a particular day are, after the conversion, taken to be a profit and loss account of GIO that was:

(a) made out in relation to that period, and

(b) laid before the body at an annual general meeting of the body held on that day.

3 Audit

(1) As from the conversion, the functions of the Auditor-General under the Public Finance and Audit Act 1983 are no longer exercisable with respect to GIO, except in respect of whole financial years before the conversion.

(2) GIO is not required to prepare accounts as at the date of conversion if the conversion occurs during a financial year.

4 Saving of GIO tax-equivalent contribution payable to Treasurer

(1) The repeal of section 10A of the GIO Act does not affect any liability under that section in respect of any period before the conversion.

(2) The regulations may make provision for or with respect to the payment of any amount of that liability, including the time at which any such amount is payable and the filing of returns by GIO relating to the payment of any such amount.

(3) The regulations may also make provision for or with respect to the application of the provisions of section 10A of the GIO Act (with or without modifications) to GIO or any GIO subsidiary during any part of the period to which Part 7 applies when GIO or the GIO subsidiary is not liable to pay income tax.

5 Superannuation under State schemes

(1) This clause applies to a member of the staff of GIO who is, immediately before the conversion, a contributor to the State Superannuation Fund or the State Authorities Superannuation Fund.

(2) Contributors to whom this clause applies cease to be contributors on the conversion. They are taken to have elected on the conversion to preserve their superannuation benefits in accordance with the relevant statutory provisions.

(3) This clause does not affect the provisions of any other Act or regulations relating to the rights of contributors.