Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document

 Download WordDownload Word  Download PDFDownload PDF 


Bill home page
Table Of Contents
Previous Fragment    Next Fragment
Terrorism Insurance Bill 2003

Part 3 Australian Reinsurance Pool Corporation

Division 1 Establishment, functions and powers of the Corporation

9   Establishment of Corporation

                   The Australian Reinsurance Pool Corporation is established by this section.

10   Functions of Corporation

                   The Corporation has the following functions:

                     (a)  to provide insurance cover for eligible terrorism losses (whether by entering into contracts or by other means);

                     (b)  any other functions that are prescribed by the regulations.

11   Powers of Corporation

             (1)  The Corporation has power to do all things necessary or convenient to be done for or in connection with the performance of its functions.

             (2)  For the avoidance of doubt, the powers of the Corporation include:

                     (a)  the power to charge premiums in respect of contracts of insurance for which it is the insurer; and

                     (b)  the power to charge fees for services that it provides in connection with the performance of its functions.

12   Constitution of Corporation

             (1)  The Corporation consists of the following members:

                     (a)  a Chair;

                     (b)  at least 4, but not more than 6, other members.

             (2)  The Corporation:

                     (a)  is a body corporate with perpetual succession; and

                     (b)  must have a seal; and

                     (c)  may acquire, hold and dispose of real and personal property; and

                     (d)  may sue and be sued in its corporate name.



 

Division 2 Administrative provisions about members

13   Appointment of members

             (1)  The members of the Corporation are to be appointed in writing by the Minister, on a part-time basis.

             (2)  A member holds office for the period specified in the instrument of appointment. The period must not exceed 4 years.

             (3)  The Minister must not appoint a person as a member unless the Minister is satisfied that the person:

                     (a)  has suitable qualifications or experience; and

                     (b)  is of good character.

             (4)  The appointment of a member is not invalid merely because of a defect or irregularity in connection with the member’s appointment.

14   Acting Chair

             (1)  The Minister may appoint a member to act as the Chair:

                     (a)  during a vacancy in the office of Chair (whether or not an appointment has previously been made to the office); or

                     (b)  during any period, or during all periods, when the Chair is absent from duty or from Australia, or is, for any reason, unable to perform the duties of the office.

             (2)  Anything done by or in relation to a person purporting to act under an appointment is not invalid merely because:

                     (a)  the occasion for the appointment had not arisen; or

                     (b)  there was a defect or irregularity in connection with the appointment; or

                     (c)  the appointment had ceased to have effect; or

                     (d)  the occasion to act had not arisen or had ceased.

15   Additional terms and conditions of appointment of members

                   A member holds office on the terms and conditions (if any) in relation to matters not covered by this Act that are determined by the Minister.

16   Outside employment of members

                   A member must not engage in any paid employment that, in the Minister’s opinion, conflicts or may conflict with the proper performance of the member’s duties.

17   Remuneration and allowances of members

             (1)  A member is to be paid the remuneration that is determined by the Remuneration Tribunal. If no determination of that remuneration by the Tribunal is in operation, the member is to be paid the remuneration that is prescribed.

             (2)  A member is to be paid the allowances that are prescribed.

             (3)  This section has effect subject to the Remuneration Tribunal Act 1973 .

18   Leave of absence

                   The Chair may grant leave of absence to any other member on the terms and conditions that the Chair determines.

19   Resignation

                   A member may resign his or her appointment by giving the Minister a written resignation.

20   Termination of appointment of members

             (1)  The Minister may terminate a member’s appointment for misbehaviour or physical or mental incapacity.

             (2)  The Minister may terminate a member’s appointment if:

                     (a)  the member:

                              (i)  becomes bankrupt; or

                             (ii)  applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or

                            (iii)  compounds with his or her creditors; or

                            (iv)  makes an assignment of his or her remuneration for the benefit of his or her creditors; or

                     (b)  the member is absent, except on leave of absence, from 3 consecutive meetings of the Corporation; or

                     (c)  the member engages in paid employment that, in the Minister’s opinion, conflicts or could conflict with the proper performance of the duties of his or her office; or

                     (d)  the member fails, without reasonable excuse, to comply with Subdivision B of Division 4 of Part 3 of the Commonwealth Authorities and Companies Act 1997 ; or

                     (e)  the Minister is of the opinion that the performance of the member has been unsatisfactory for a significant period of time.



 

Division 3 Meetings of the Corporation

21   Times and places of meetings

             (1)  The Corporation must hold such meetings as are necessary for the efficient performance of its functions.

             (2)  The Chair:

                     (a)  may convene a meeting at any time; and

                     (b)  must convene a meeting on receipt of a written request signed by at least 2 other members.

             (3)  Meetings are to be held at such places as the Chair determines.

22   Procedure at meetings

             (1)  The Chair presides at all meetings at which he or she is present.

             (2)  If the Chair is not present at a meeting, the members present are to appoint one of their number to preside.

             (3)  A quorum is constituted by a majority of the members for the time being holding office.

             (4)  A question is decided by a majority of the votes of the members present and voting.

             (5)  The person presiding at a meeting has a deliberative vote and, if necessary, also a casting vote.

Note:          Subdivision B of Division 4 of Part 3 of the Commonwealth Authorities and Companies Act 1997 has rules for “directors” about disclosing, and voting on matters involving, material personal interests.

             (6)  Subject to this section, the procedure is to be as determined by the Corporation.

23   Resolutions without meetings

                   If the Corporation so determines, a resolution is taken to have been passed at a meeting of the Corporation if:

                     (a)  without meeting, a majority of the members indicate agreement with the resolution in accordance with the method determined by the Corporation; and

                     (b)  that majority would have constituted a quorum at a meeting of the Corporation.



 

Division 4 Chief Executive

24   Chief Executive

             (1)  There is to be a Chief Executive of the Corporation.

             (2)  The Chief Executive is to be appointed in writing by the Corporation on a full-time basis.

             (3)  A member of the Corporation cannot be appointed as Chief Executive.

             (4)  The appointment of a person as Chief Executive is not invalid merely because of a defect or irregularity in connection with the person’s appointment.

25   Duties of the Chief Executive

             (1)  The Chief Executive is to manage the affairs of the Corporation subject to the directions of, and in accordance with policies determined by, the Corporation.

             (2)  A thing is taken to have been done by the Corporation if it is done in the name of the Corporation, or on behalf of the Corporation:

                     (a)  by the Chief Executive; or

                     (b)  with the authority of the Chief Executive.

26   Termination of appointment

                   The Corporation may at any time terminate the appointment of the Chief Executive.

27   Acting appointments

             (1)  The Corporation may appoint a person to act as the Chief Executive for a period not exceeding 3 months:

                     (a)  during a vacancy in the office of Chief Executive (whether or not an appointment has previously been made to the office); or

                     (b)  during any period when the Chief Executive is absent from duty or from Australia, or is, for any reason, unable to perform the duties of the office.

             (2)  If, at the end of the 3 month period:

                     (a)  there continues to be a vacancy in the office of Chief Executive; or

                     (b)  the Chief Executive continues to be absent or unable to perform the duties of the office;

then the Minister, on the recommendation of the Corporation, may appoint a person to act as the Chief Executive.

             (3)  Anything done by or in relation to a person purporting to act under an appointment is not invalid merely because:

                     (a)  the occasion for the appointment had not arisen; or

                     (b)  there was a defect or irregularity in connection with the appointment; or

                     (c)  the appointment had ceased to have effect; or

                     (d)  the occasion to act had not arisen or had ceased.

             (4)  An appointment under this section must be in writing.

28   Additional terms and conditions of appointment of Chief Executive

                   The Chief Executive holds office on the terms and conditions (if any) in relation to matters not covered by this Act that are determined in writing by the Corporation.

29   Outside employment of Chief Executive

                   The Chief Executive must not engage in paid employment outside the duties of his or her office except with the approval of the Corporation.

30   Leave of absence

                   The Chair may grant leave of absence to the Chief Executive on the terms and conditions that the Chair determines.

31   Resignation

                   The Chief Executive may resign his or her appointment by giving the Minister a written resignation.



 

Division 5 Employees and consultants

32   Employees

             (1)  The Corporation may employ such persons as it considers necessary for the performance of its functions and the exercise of its powers.

             (2)  An employee is to be employed on the terms and conditions that the Corporation determines in writing.

33   Consultants

             (1)  The Corporation may engage persons having suitable qualifications and experience as consultants to the Corporation.

             (2)  The consultants are to be engaged on the terms and conditions that the Corporation determines in writing.



 

Division 6 Finances

34   Application of money

             (1)  The Corporation’s money is to be applied only:

                     (a)  in payment or discharge of the expenses, charges, obligations and liabilities incurred or undertaken by the Corporation in the performance of its functions and the exercise of its powers; and

                     (b)  in payment of remuneration and allowances payable under this Act.

             (2)  Subsection (1) does not prevent investment of surplus money of the Corporation under Division 3 of Part 3 of the Commonwealth Authorities and Companies Act 1997 .

35   Commonwealth guarantee

             (1)  The Commonwealth guarantees the due payment of money that may become payable by the Corporation to any person other than the Commonwealth.

             (3)  If at any time the Corporation considers it likely that it will be unable to discharge all its liabilities, after taking into account the guarantee under this section, then the Corporation must give the Minister a written notice to that effect.

36   Liability to taxation

                   The Corporation is not subject to income tax under a law of the Commonwealth.

37   Appropriation of Consolidated Revenue Fund

                   The Consolidated Revenue Fund is appropriated for:

                     (a)  payment to the Corporation of amounts borrowed by the Corporation from the Commonwealth; and

                     (b)  payments by the Commonwealth under section 35.



 

Division 7 Miscellaneous

38   Minister may give directions to Corporation

             (1)  The Minister may give written directions to the Corporation in relation to the performance of its functions and the exercise of its powers.

             (2)  The directions that may be given under subsection (1) include the following:

                     (a)  directions requiring the Corporation to pay money to the Commonwealth;

                     (b)  directions requiring the Corporation to enter into contracts to borrow money from the Commonwealth;

                     (c)  directions requiring the Corporation to enter into contracts to borrow money from persons other than the Commonwealth;

                     (d)  directions setting premiums that are to be charged by the Corporation in respect of contracts of insurance;

                     (e)  directions relating to the extent to which risk is to be retained by the insured under a contract of reinsurance with the Corporation.

             (3)  Without limiting paragraph (2)(a), a direction under that paragraph may require the Corporation to make the following payments to the Commonwealth:

                     (a)  payments designed to ensure that sections 35 and 36 do not result in a competitive advantage for the Corporation;

                     (b)  payments in the nature of dividends.

             (4)  A direction under paragraph (2)(c) cannot require the Corporation to enter into a contract with a particular person.

             (5)  The Corporation must perform its functions and exercise its powers in a manner consistent with any directions given by the Minister under this section.

             (6)  As soon as practicable after the Minister gives a direction covered by paragraph (2)(d) or (e), the Minister must cause the direction to be published.

39   Evidence—Corporation’s seal

                   All courts, judges and persons acting judicially must:

                     (a)  take judicial notice of the imprint of the seal of the Corporation appearing on a document; and

                     (b)  presume that the document was duly sealed.

40   Delegation by Corporation

                   The Corporation may, by writing, delegate all or any of its powers or functions under this Act to:

                     (a)  the Chief Executive; or

                     (b)  a person employed under section 32.

Note:          See also subsection 25(3).