Power to form companies etc
25A Power to form companies etc
In this section:
authorized business means a business or other activity related to or incidental to the performance of any of the functions of the Corporation.
prescribed company means a company that carries on, or proposes to carry on, an authorized business.
The Corporation may:
form, or participate with other persons in the formation of, a company to carry on an authorized business;
acquire, hold and dispose of shares or stock in the capital of, or debentures or other securities of, a prescribed company;
enter into a partnership, or an arrangement for the sharing of profits or expenses, with a prescribed company for the purpose of carrying on an authorized business; and
provide technical or other assistance and facilities (whether in or outside Australia) for a prescribed company or for a partnership, or for the purposes of an arrangement, referred to in paragraph (c).
Section 19 of the Public Governance, Performance and Accountability Act 2013 requires the accountable authority of a Commonwealth entity to keep the Minister informed of the activities of the entity and any of its subsidiaries.
An agreement or arrangement between the Corporation and a prescribed company shall include a term empowering the Corporation to terminate the agreement or arrangement if the prescribed company ceases to be a prescribed company.
Where:
the Corporation has an interest in, or is a party to an agreement or arrangement with, a prescribed company; and
the prescribed company ceases to be a prescribed company;
the Minister may give to the Corporation such directions as the Minister thinks appropriate with respect to:
the disposal of the interest of the Corporation in the company; or
the termination of the agreement or arrangement between the Corporation and the company;
as the case may be, and the Corporation shall comply with any such directions.
This section does not authorize a prescribed company to carry on an authorised business otherwise than in accordance with the relevant law.
This Act’s bill:Second reading speech
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