{"id":"C2004A03616","name":"International Bank for Reconstruction and Development (Share Increase) Act 1988","slug":"international-bank-for-reconstruction-and-development-share-increase-act-1988","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"23 of 1988","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":7606,"registerId":"commonwealth-C2004A03616-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n  This Act may be cited as the International Bank for Reconstruction and Development (Share Increase) Act 1988.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  This Act commences on the day on which it receives the Royal Assent.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Definitions","content":"#### 3 Definitions\n\n  In this Act:\n\n> Bank means the International Bank for Reconstruction and Development.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Agreements for purchase of additional shares of capital stock of the Bank","content":"#### 4 Agreements for purchase of additional shares of capital stock of the Bank\n\n  The Treasurer may, on behalf of Australia, make an agreement or agreements, containing such terms and conditions as the Treasurer determines, with the Bank for the purchase by Australia of 178 additional shares of the capital stock of the Bank at a price per share that is the equivalent of 120,635 United States dollars.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Appropriation and issue of securities","content":"#### 5 Appropriation and issue of securities\n\n  (1) There may be paid out of the Consolidated Revenue Fund, which is appropriated accordingly, the money necessary for the purpose of making any payment to be made by Australia under an agreement made under section 4.\n  (2) Section 7 of the International Monetary Agreements Act 1947 applies to any payment to be made by Australia under an agreement made under section 4 of this Act as it applies to payments under that Act.","sortOrder":4}],"analysis":{"issue_detection":{"absurdities":[{"type":"other","section":"3","severity":"low","reasoning":"A definitions section containing a single, obvious definition adds negligible legal value. The full name 'International Bank for Reconstruction and Development' appears in both the title and section 4, making the definition of 'Bank' redundant. The definition section creates the appearance of complexity without substantive content.","confidence":0.55,"description":"The definitions section contains only one definition ('Bank') which is self-evident from the Act's title and provides no meaningful legal clarification beyond what is already obvious from context."},{"type":"self_contradicting","section":"4","severity":"medium","reasoning":"The grant of broad discretion to the Treasurer to set terms and conditions is substantially hollowed out by the pre-fixing of the two most commercially significant variables — quantity and price. It is unclear what substantive terms remain for the Treasurer's discretion, potentially rendering the discretion power either illusory or creating ambiguity about whether the Treasurer could vary pricing or share numbers through 'terms and conditions', which would contradict the fixed figures in the same section.","confidence":0.65,"description":"Section 4 grants the Treasurer discretion over 'terms and conditions as the Treasurer determines' while simultaneously fixing both the quantity of shares (178) and the price per share (USD 120,635) with absolute precision, leaving virtually no meaningful terms or conditions for the Treasurer to actually determine."},{"type":"impossible_compliance","section":"4","severity":"medium","reasoning":"Currency equivalence is inherently time-sensitive and rate-dependent. The Act provides no mechanism for determining what Australian dollar amount satisfies the obligation, no reference date, and no designated rate source (e.g., Reserve Bank of Australia rate, contract rate). This creates a legally uncertain obligation that cannot be precisely performed without extra-statutory assumptions, undermining the Act's apparent precision.","confidence":0.72,"description":"The price is expressed as 'the equivalent of 120,635 United States dollars' without specifying the exchange rate mechanism, the date at which equivalence is to be assessed, or the authority that determines equivalence, making the purchase price practically indeterminate at the moment of contracting."}],"contradictions":[{"severity":"medium","section_a":"5(1)","section_b":"5(2)","confidence":0.68,"description":"Section 5(1) provides a direct appropriation from the Consolidated Revenue Fund for payments under section 4 agreements, while section 5(2) simultaneously applies section 7 of the International Monetary Agreements Act 1947 to the same payments. Section 7 of that Act provides its own mechanism for payments (including via promissory notes or securities rather than direct cash), potentially creating two overlapping and inconsistent payment regimes for the same obligation."}]},"summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"The Act is narrowly and precisely scoped. It does exactly what its title suggests — it authorises the purchase of a specific number of shares at a specific price in the World Bank. There is no evidence of scope creep or deviation from its original purpose."},"complexity_factors":["Very short Act with only 5 sections","Incorporates by reference a provision from another Act (International Monetary Agreements Act 1947), requiring cross-referencing to fully understand payment mechanics","Involves international financial concepts (capital stock, share purchases in an international institution) that may be unfamiliar to laypeople","Otherwise straightforward — single, specific purpose with clear dollar amounts and no discretionary criteria beyond Treasurer's terms and conditions"],"plain_english_summary":"This Act authorises the Treasurer to buy 178 additional shares in the International Bank for Reconstruction and Development (World Bank) for about USD 21.5 million. Payment is taken from the Consolidated Revenue Fund, with an option to use government securities under existing law.\n\nIt increases Australia’s financial commitment and voting weight at the World Bank, affecting government obligations and, indirectly, taxpayers."},"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"The Act does not alter existing statutes or the Bank's legal framework; it only authorises a one-off increase in Australia's IBRD capital subscription and appropriates funds for that purchase (see sections 4–5)."},"complexity_factors":["Single, narrowly framed transaction (specified number of shares and price)","Delegation of contractual terms and conditions to the Treasurer (discretionary power)","Appropriation mechanism requiring payment from the Consolidated Revenue Fund","Cross-reference to section 7 of the International Monetary Agreements Act 1947 (external legal link)","Currency phrasing: \"equivalent of\" US dollars may require conversion/valuation choices"],"plain_english_summary":"This Act authorises the Treasurer to buy, for Australia, 178 additional shares in the International Bank for Reconstruction and Development at the equivalent of US$120,635 per share, and provides that money for the purchase may be paid from the Consolidated Revenue Fund. The Treasurer decides the terms and conditions for the purchase and payments are subject to section 7 of the International Monetary Agreements Act 1947."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: authorising a specific share purchase in the World Bank. There is no evidence of scope creep or expansion beyond this narrow financial commitment."},"complexity_factors":["Only 1 defined term ('Bank')","No cross-references to other legislation beyond a single reference to section 7 of the International Monetary Agreements Act 1947","Straightforward conditional logic: Treasurer 'may' make agreements, with no nested exceptions or qualifications","Very short length (5 sections, approximately 200 words)","Single purpose legislation with no subordinate provisions or regulations"],"plain_english_summary":"This law lets Australia buy more shares in the World Bank.\n\n**What it does:**\n- Authorises the Treasurer (Australia's finance minister) to sign an agreement to purchase **178 additional shares** in the International Bank for Reconstruction and Development — better known as the **World Bank**.\n- Sets the price: each share costs **US$120,635**.\n- Allows money to be paid from Australia's main government bank account (the **Consolidated Revenue Fund**) to cover these purchases.\n- Links this payment process to existing rules in the **International Monetary Agreements Act 1947**, so the same procedures apply.\n\n**Who it affects:**\n- Primarily the Australian government and Treasury officials handling international financial commitments.\n- Indirectly, Australian taxpayers (whose money funds the share purchase).\n\n**Why it matters:**\n- This increases Australia's stake and voting power in the World Bank, which provides loans and development assistance to countries worldwide. Owning more shares means Australia has more influence over how the bank operates and where it directs resources."}},"importantCases":[],"_links":{"self":"/api/acts/international-bank-for-reconstruction-and-development-share-increase-act-1988","history":"/api/acts/international-bank-for-reconstruction-and-development-share-increase-act-1988/history","analysis":"/api/acts/international-bank-for-reconstruction-and-development-share-increase-act-1988/analysis","conflicts":"/api/acts/international-bank-for-reconstruction-and-development-share-increase-act-1988/conflicts","importantCases":"/api/acts/international-bank-for-reconstruction-and-development-share-increase-act-1988/important-cases","documents":"/api/acts/international-bank-for-reconstruction-and-development-share-increase-act-1988/documents"}}