{"id":"C2007A00006","name":"Export Finance and Insurance Corporation Amendment Act 2007","slug":"export-finance-and-insurance-corporation-amendment-act-2007","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"6 of 2007","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":7951,"registerId":"commonwealth-C2007A00006-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Export Finance and Insurance Corporation Amendment Act 2007","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![](image.001.png)\n\n \n\n \n\n \n\n \n\n \n\n \n\nExport Finance and Insurance Corporation Amendment Act 2007\n\n \n\nNo. 6, 2007\n\n \n\n \n\n \n\n \n\n \n\nAn Act to amend the Export Finance and Insurance Corporation Act 1991, and for related purposes\n\n \n\n \n\nContents\n\n1 Short title\n\n2 Commencement\n\n3 Schedule(s)\n\nSchedule 1—Amendments\n\nExport Finance and Insurance Corporation Act 1991\n\n \n\n![](image.001.png)\n\n \n\n \n\nExport Finance and Insurance Corporation Amendment Act 2007\n\nNo. 6, 2007\n\n \n\n \n\n \n\nAn Act to amend the Export Finance and Insurance Corporation Act 1991, and for related purposes\n\n[Assented to 19 February 2007]\n\nThe Parliament of Australia enacts:\n\n1  Short title\n\n  This Act may be cited as the Export Finance and Insurance Corporation Amendment Act 2007.\n\n2  Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provision(s) Commencement Date/Details\n- 1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table The day on which this Act receives the Royal Assent. 19 February 2007.\n- 2. Schedule 1 A single day to be fixed by Proclamation.However, if any of the provision(s) do not commence within the period of 6 months beginning on the day on which this Act receives the Royal Assent, they commence on the first day after the end of that period. 1 July 2007(see F2007L01579)\n\n\nNote: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.\n\n (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.\n\n3  Schedule(s)\n\n  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.\n\n\n\n\nSchedule 1—Amendments\n\n \n\nExport Finance and Insurance Corporation Act 1991\n\n1  Subsection 3(1) (definition of appointed member)\n\nOmit “and the Chief Executive Officer of the Australian Trade Commission”.\n\n2  Paragraph 34(1)(d)\n\nRepeal the paragraph.\n\n3  Paragraph 34(1)(f)\n\nOmit “4 nor more than 6”, substitute “2 nor more than 5”.\n\n4  Subsection 34(2)\n\nOmit “and the Chief Executive Officer of the Australian Trade Commission”.\n\n5  Subsection 34(4)\n\nOmit “4”, substitute “2”.\n\n6  Subsection 34(5)\n\nRepeal the subsection.\n\n7  Subsection 35(1)\n\nRepeal the subsection, substitute:\n\n (1) An appointed member, other than the government member, must be appointed for a term of 3 years.\n\n (1A) An appointed member, other than the government member, is eligible for reappointment but must not hold office as a member of the Board for a total of more than:\n\n (a) 2 terms; or\n\n (b) if the member has been appointed at any time as the Chairperson—3 terms.\n\n8  Saving provision\n\n(1) Despite the amendments to section 35 of the Export Finance and Insurance Corporation Act 1991 made by item 7, an appointed member, other than the government member, whose appointment is in force immediately before the commencement of this Schedule continues to hold office for the balance of the period of the appointment as if the amendments had not been made.\n\n(2) Subitem (1) does not prevent the Minister terminating the appointment under section 42 or 43 of that Act or from otherwise varying or revoking the appointment.\n\n9  Subsection 38(6)\n\nRepeal the subsection.\n\n10  Subsection 44(7)\n\nOmit “5 members”, substitute “3 members”.\n\n11  Subsections 71(2) and (3)\n\nRepeal the subsections, substitute:\n\n (2) The Managing Director is to be appointed by the Board after the Board has consulted with the Minister in relation to the appointment.\n\n (3) The Board may appoint a Deputy Managing Director of EFIC after the Board has consulted with the Minister in relation to the appointment.\n\n12  Saving provision\n\n(1) Despite the amendments to section 71 of the Export Finance and Insurance Corporation Act 1991 made by item 11, the Managing Director of EFIC whose appointment is in force immediately before the commencement of this Schedule continues to hold office as if the amendments had not been made.\n\n(2) Subitem (1) does not prevent the Board from terminating the appointment under paragraph 72(b) of that Act.\n\n \n\n[Minister’s second reading speech made in—\n\nSenate on 16 August 2006\n\nHouse of Representatives on 8 February 2007]\n\n(107/06)\n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The amendments change governance and appointment arrangements for the EFIC Board and senior executives but do not extend or add substantive EFIC functions or powers. The Act narrows board composition, creates term limits, and shifts appointment mechanics; it does not materially broaden the statutory scope of EFIC’s activities compared with the original 1991 Act."},"complexity_factors":["Relatively short amendment Act (Schedule with 12 items)","Multiple repeals and substitutions across one parent Act (Export Finance and Insurance Corporation Act 1991)","Several saving (transitional) provisions preserving existing appointments (Schedule 1, items 8 and 12)","Numeric changes to board size and quorum references in multiple places (items 3, 5, 10)","Introduction of conditional reappointment limits (item 7: 2 terms generally, 3 if ever Chairperson)","Change in appointment mechanism for Managing Director with consultative requirement (item 11)"],"plain_english_summary":"**What this Act changes (mechanically)**\n\n- Reduces and reshapes the EFIC (Export Finance and Insurance Corporation) Board membership and removes one ex‑officio seat. Specifically:\n  - Removes the Chief Executive Officer of the Australian Trade Commission (Austrade) from the list of appointed members (Schedule 1, items 1 and 4).\n  - Lowers the range of appointed (non‑government) members so there are fewer appointed directors (changes from “4–6” to “2–5”; Schedule 1, item 3) and reduces corresponding numeric references elsewhere (Schedule 1, items 5 and 10).\n  - Repeals one or more now‑redundant subsections that previously governed board composition or related detail (Schedule 1, items 2, 6 and 9).\n\n- Changes terms, reappointment limits and transitional protections for appointed members:\n  - Appointed members (other than the government member) are appointed for three‑year terms and are eligible for reappointment, but may not serve more than two terms in total, except that a member who has ever been Chairperson may serve up to three terms (Schedule 1, item 7).\n  - Existing appointed members continue for the remainder of their current appointment despite the new term rules (saving provision, Schedule 1, item 8).\n\n- Shifts the appointment power for the Managing Director and allows the Board to appoint a Deputy Managing Director:\n  - The Managing Director is to be appointed by the Board after the Board has consulted with the Minister (new subsections replacing the previous text) (Schedule 1, item 11).\n  - The Board may appoint a Deputy Managing Director after consulting the Minister (Schedule 1, item 11).\n  - The current Managing Director keeps office under the old rules until their existing appointment term ends (saving provision, Schedule 1, item 12).\n\nIn short: the Act narrows and reconfigures Board composition, imposes fixed three‑year terms and caps on reappointment for appointed members, removes the Austrade CEO’s automatic membership, reduces certain numeric thresholds (including the quorum/attendance reference), and transfers the formal appointment role for the Managing Director to the Board subject to consultation with the Minister.\n\n**Who is affected**\n\n- The EFIC Board (appointed members and Chair): fewer appointed non‑government members, shorter statutory maximum tenure, and a potential change in the pool of stakeholders represented on the Board (Schedule 1, items 1–7).\n- The Managing Director and potential Deputy Managing Director: their appointments are to be made by the Board after consultation with the Minister rather than by the Minister directly (Schedule 1, item 11).\n- The Minister: loses the direct statutory appointment power for the Managing Director but retains consultation input and retains existing termination powers (saving provisions and existing powers under the EFIC Act).\n- EFIC as an organisation: governance and decision‑making arrangements change; administrative procedures (appointments, meetings) will be adjusted to the new numeric and term limits.\n- Indirectly, EFIC’s counterparties (exporters, lenders, insurers) could see secondary effects if governance changes alter the speed, style or risk appetite of EFIC decision making.\n\n**Why it matters (practical effects and trade‑offs)**\n\n- Concentration and speed: reducing the number of appointed members and lowering numeric thresholds (for example quorum references) makes it easier for the Board to meet and decide quickly, but concentrates decision making among fewer persons (Schedule 1, items 3, 5, 10).\n\n- Board independence and accountability: removing the Austrade CEO’s automatic seat ends an ex‑officio link with Austrade (Schedule 1, items 1 and 4). This changes the composition of expertise and may alter the institutional link between trade promotion and export finance policy. The Board’s new role in appointing the Managing Director (after consulting the Minister) gives the Board greater formal control over executive leadership (Schedule 1, item 11).\n\n- Turnover and experience: fixed three‑year terms with a two‑term cap (three terms if the member has been Chairperson) increases member turnover and limits long tenure (Schedule 1, item 7). That reduces the possibility of long‑running continuity on the Board but increases opportunities for refreshment of skills and perspectives. It may modestly raise recruitment and induction costs and reduce accumulation of institutional knowledge.\n\n- Administrative and compliance load: fewer board members and clearer term limits reduce the number of appointments the government must make, and may lower some administrative costs. The Act contains saving provisions to avoid immediate disruption to sitting members and the current Managing Director (Schedule 1, items 8 and 12), which reduces transitional risk.\n\n- Ministerial influence and oversight: the Minister retains formal powers to terminate appointments and will be consulted about senior executive appointments; however, the shift to Board appointment for the Managing Director reduces the Minister’s direct statutory appointment power (Schedule 1, items 8, 11 and 12). This reallocates decision authority, increasing Board responsibility for executive selection while preserving ministerial oversight through consultation and termination powers.\n\n**Costs, incentives and implementation risks**\n\n- Who pays: there is no new direct spending or new fee regime in the amendment itself; costs are mainly administrative (appointment processes, possible recruitment) and the potential indirect cost of any change in EFIC’s risk appetite that could affect taxpayer exposure to contingent liabilities.\n\n- Incentives and behaviour: the Board’s greater appointment authority for the Managing Director (Schedule 1, item 11) incentivises stronger internal oversight and alignment between directors and executive management. Term limits incentivise rotation; they also encourage boards to plan succession.\n\n- Risks and trade‑offs: a smaller Board can be quicker and cheaper to operate but may have less diversity of expertise and fewer internal checks. Removing the Austrade CEO seat reduces guaranteed input from a trade promotion agency; that may lower coordination or, alternatively, reduce institutional overlap depending on practice. Transitional saving provisions reduce short‑term disruption (Schedule 1, items 8 and 12).\n\n**Net effect (mechanical, not normative)**\nThe Act is a governance and composition amendment to the EFIC Act: it narrows and redefines Board membership and appointment arrangements, limits individual tenure, reduces certain numerical thresholds, and shifts the formal appointment power for the Managing Director to the Board (with a consultation requirement). It does not expand or change EFIC’s statutory functions or powers to provide finance or insurance to exporters; it changes who decides and how long they may serve."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This is a straightforward governance amendment that stays tightly within its original purpose of restructuring EFIC's board composition and appointment processes. The changes are mechanical adjustments to membership numbers and appointment procedures, not an expansion into new policy areas."},"complexity_factors":["Very short amending act (only 12 items)","Simple, mechanical amendments (omissions, substitutions, repeals of specific subsections)","No new defined terms or complex interpretive provisions","Straightforward saving provisions that preserve existing appointments","Single schedule amending only one principal Act","No nested conditions or cross-references beyond the immediate amendments"],"plain_english_summary":"This law makes changes to how the Export Finance and Insurance Corporation (EFIC) — a government agency that helps Australian businesses sell goods and services overseas — is run.\n\n**Main changes:**\n\n* **Smaller board:** The board that oversees EFIC shrinks from 6-8 members down to 3-6 members. Specifically, the minimum number of appointed (non-government) board members drops from 4 to 2, and the maximum drops from 6 to 5.\n\n* **No more automatic seats:** The Chief Executive Officer of Austrade (the Australian Trade Commission) no longer automatically sits on EFIC's board. Previously they had an ex-officio seat (meaning a seat by virtue of their other job), but now they're removed entirely.\n\n* **Term limits for board members:** Appointed board members (except the government representative) now serve fixed 3-year terms. They can be reappointed, but there's a cap: normally 2 terms maximum, or 3 terms if they've served as Chairperson.\n\n* **Managing Director appointment process:** The Board now appoints the Managing Director (EFIC's CEO) after consulting with the Minister, rather than the previous arrangement. The Board can also appoint a Deputy Managing Director after ministerial consultation.\n\n* **Quorum changes:** The minimum number of board members needed for a valid meeting drops from 5 to 3.\n\n**Who it affects:**\n\n* EFIC board members and senior executives\n* Australian businesses that use EFIC's export finance and insurance services\n* Austrade, which loses its automatic representation on the EFIC board\n\n**Why it matters:**\n\nThe changes streamline EFIC's governance, making it smaller and more flexible. Removing the Austrade CEO from the board reduces potential conflicts of interest and allows EFIC to operate more independently, while still requiring ministerial consultation on key appointments. The term limits bring EFIC into line with standard corporate governance practices for government bodies."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/export-finance-and-insurance-corporation-amendment-act-2007","history":"/api/acts/export-finance-and-insurance-corporation-amendment-act-2007/history","analysis":"/api/acts/export-finance-and-insurance-corporation-amendment-act-2007/analysis","conflicts":"/api/acts/export-finance-and-insurance-corporation-amendment-act-2007/conflicts","importantCases":"/api/acts/export-finance-and-insurance-corporation-amendment-act-2007/important-cases","documents":"/api/acts/export-finance-and-insurance-corporation-amendment-act-2007/documents"}}