{"id":"C1955A00066","name":"International Finance Corporation Act 1955","slug":"international-finance-corporation-act-1955","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"66 of 1955","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":1400,"registerId":"C2020C00313","compilationNumber":"3","startDate":"2020-09-04","status":"InForce","reasons":[{"affect":"Amend","markdown":"sch 4 (items 1-7) of the [Treasury Laws Amendment (2020 Measures No. 2) Act 2020](/C2020A00079)","dateChanged":null,"amendedByTitle":null,"affectedByTitle":{"name":"Treasury Laws Amendment (2020 Measures No. 2) Act 2020","year":2020,"number":79,"titleId":"C2020A00079","provisions":"sch 4 (items 1-7)","seriesType":"Act","optionalSeriesNumber":null}}],"registeredAt":"2020-10-12T13:59:03.453Z"},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n  This Act may be cited as the International Finance Corporation Act 1955.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  This Act shall come into operation on the day on which it receives the Royal Assent.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Interpretation","content":"#### 3 Interpretation\n\n  In this Act:\n\n> the Agreement means the Articles of Agreement of the International Finance Corporation, done at Washington on 25 May 1955, as amended:\n\n    (a) in accordance with the following resolutions accepted in accordance with Article VII of those Articles:\n    (i) the Amendment to \\[Article III of\\] the Articles of Agreement of the International Finance Corporation \\[IFC\\] of 25 May 1955, done on 1 September 1961;\n    (ii) the Amendments to \\[Articles III and IV of\\] the Articles of Agreement of the International Finance Corporation \\[IFC\\] of 25 May 1955, done on 25 August 1965;\n    (iii) the Amendments to Articles II and VII of the Articles of Agreement of the International Finance Corporation \\[IFC\\] of 25 May 1955, done on 28 December 1992;\n    (iv) the Amendment to \\[Article IV of\\] the Articles of Agreement of the International Finance Corporation \\[IFC\\] of 25 May 1955, done on 9 March 2012; and\n    (b) by any other amendment of those Articles that is notified under section 5A.\n\n> Note 1: The Agreement is in Australian Treaty Series 1956 No. 14 (\\[1956\\] ATS 14) and could in 2020 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).\n\n> Note 2: The Amendment to \\[Article III of\\] the Articles of Agreement of the International Finance Corporation \\[IFC\\] of 25 May 1955 is in Australian Treaty Series 1961 No. 26 (\\[1961\\] ATS 26) and could in 2020 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).\n\n> Note 3: The Amendments to \\[Articles III and IV of\\] the Articles of Agreement of the International Finance Corporation \\[IFC\\] of 25 May 1955 is in Australian Treaty Series 1965 No. 25 (\\[1965\\] ATS 25) and could in 2020 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).\n\n> Note 4: The Amendments to Articles II and VII of the Articles of Agreement of the International Finance Corporation \\[IFC\\] of 25 May 1955 is in Australian Treaty Series 1993 No. 47 (\\[1993\\] ATS 47) and could in 2020 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).\n\n> Note 5: The Amendment to \\[Article IV of\\] the Articles of Agreement of the International Finance Corporation \\[IFC\\] of 25 May 1955 is in Australian Treaty Series 2012 No. 42 (\\[2012\\] ATS 42) and could in 2020 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Membership of Australia of International Finance Corporation","content":"#### 4 Membership of Australia of International Finance Corporation\n\n  The membership of Australia of the International Finance Corporation established under the Agreement is approved.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Subscription to capital stock","content":"#### 5 Subscription to capital stock\n\n  The Consolidated Revenue Fund is appropriated for the purposes of payments by Australia in respect of obligations that Australia has to subscribe to shares in the International Finance Corporation in accordance with the Agreement.","sortOrder":4},{"sectionNumber":"5A","sectionType":"section","heading":"Notice of amendment of the Agreement","content":"#### 5A Notice of amendment of the Agreement\n\n  (1) The Treasurer may, by legislative instrument, give notice of an amendment of the Agreement that has been accepted in accordance with Article VII of the Agreement.\n  (2) A legislative instrument under subsection (1) commences at the later of the following days or times:\n    (a) the earliest day or time applicable under subsection 12(1) of the Legislation Act 2003;\n    (b) the start of the day immediately after the last day on which a resolution referred to in subsection 42(1) of the Legislation Act 2003 disallowing the instrument could be passed.","sortOrder":5},{"sectionNumber":"5B","sectionType":"section","heading":"Further agreements to buy extra shares in the International Finance Corporation","content":"#### 5B Further agreements to buy extra shares in the International Finance Corporation\n\n  (1) The Minister may, on behalf of Australia, enter into one or more agreements with the International Finance Corporation that:\n    (a) provide for Australia to buy additional shares of the capital stock of the International Finance Corporation; and\n    (b) contain terms and conditions determined by the Minister.\n  (2) The Consolidated Revenue Fund is appropriated for the purposes of payments by Australia under an agreement referred to in subsection (1).","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Regulations","content":"#### 6 Regulations\n\n  (1) The Governor‑General may make regulations for carrying out or giving effect to the Agreement (other than Article VI).\n  (2) Regulations so made shall have effect notwithstanding that the regulations are inconsistent with an Act or with an instrument having effect by virtue of an Act.","sortOrder":7}],"analysis":{"issue_detection":{"absurdities":[{"type":"self_contradicting","section":"6(2)","severity":"high","reasoning":"Section 6(2) provides that regulations made under s6(1) 'shall have effect notwithstanding that the regulations are inconsistent with an Act or with an instrument having effect by virtue of an Act.' This inverts the orthodox constitutional hierarchy where subordinate legislation cannot override primary legislation. A regulation — a creature of the Act — is granted the power to override the very Act that creates it, and any other Act of Parliament. This is constitutionally anomalous and logically self-defeating: the Act purports to grant a delegated instrument supremacy over the legislative class to which the Act itself belongs, meaning the regulation could theoretically override the limitations imposed by the Act on the regulation-making power (e.g., the Article VI carve-out in s6(1)).","confidence":0.82,"description":"Regulations made under this section are expressly granted the power to override Acts of Parliament, including potentially the parent Act itself."},{"type":"circular_definition","section":"3(b) and 5A","severity":"low","reasoning":"The term 'the Agreement' — which is foundational to the entire Act — is defined to include amendments 'notified under section 5A,' which are themselves legislative instruments issued at the Treasurer's discretion. The definition of the core operative term of the Act is therefore ambulatory and perpetually incomplete. While ambulatory definitions referencing treaties are common in Australian law, the mechanism here means the definition of 'the Agreement' in s3(b) is partially defined by reference to a process established in s5A, which itself operates by reference to 'the Agreement' (specifically Article VII). There is a mild circularity: s5A authorises notice of amendments 'of the Agreement,' but 'the Agreement' is only complete once those notices are given under s5A.","confidence":0.62,"description":"The definition of 'the Agreement' in s3 is partially self-referential and open-ended, incorporating future amendments notified under s5A, creating a definition whose content is unknowable at the time of reading without consulting external legislative instruments."},{"type":"impossible_compliance","section":"5A(2)","severity":"medium","reasoning":"Section 5A(2)(b) delays commencement of a notification instrument until after the disallowance window under s42(1) of the Legislation Act 2003 closes. However, treaty amendments accepted under Article VII of the IFC Articles of Agreement take effect internationally upon acceptance, irrespective of Australian domestic parliamentary processes. This means Australia could be internationally bound by an amendment to the Agreement that has not yet commenced domestically, creating a gap period where 'the Agreement' as defined in this Act does not match Australia's actual international obligations. During this window, the Act would legally incorporate the pre-amendment Agreement while Australia is internationally obligated under the amended version — a direct conflict between domestic legal effect and international obligation.","confidence":0.78,"description":"The commencement provision for legislative instruments under s5A creates a temporal paradox where the instrument cannot commence until after the disallowance period expires, but the amendment it notifies may already be internationally binding on Australia before that period has elapsed."},{"type":"other","section":"6(1)","severity":"medium","reasoning":"Article VI of the IFC Articles of Agreement concerns the status, immunities and privileges of the Corporation. By expressly excluding Article VI from the regulation-making power in s6(1), Parliament has left a gap: no regulatory mechanism exists to implement Article VI domestically. If Article VI requires domestic legislative action (e.g., granting legal personality, tax exemptions, or immunity from suit), those obligations cannot be met through the s6 regulation-making power. The Act provides no alternative mechanism for implementing Article VI. It is unclear whether this exclusion was deliberate policy or an oversight, and the Act provides no reasoning. The result is a potentially unimplementable treaty obligation.","confidence":0.7,"description":"The carve-out of Article VI from the regulation-making power is unexplained and potentially renders key operational obligations of the Agreement unenforceable domestically."}],"contradictions":[{"severity":"medium","section_a":"6(1)","section_b":"6(2)","confidence":0.65,"description":"Section 6(1) limits regulation-making power to carrying out the Agreement 'other than Article VI,' but s6(2) grants those regulations supremacy over all Acts. If regulations can override all Acts, they could indirectly give domestic effect to Article VI obligations through other legislative instruments, circumventing the s6(1) carve-out."},{"severity":"high","section_a":"5A(2)(b)","section_b":"3(b)","confidence":0.85,"description":"Section 3(b) incorporates into the definition of 'the Agreement' any amendment notified under s5A. Section 5A(2)(b) delays commencement of such notification instruments until after the disallowance period. If Parliament disallows a notification instrument, the amendment is excluded from the definition of 'the Agreement' domestically, yet Australia remains internationally bound by the amendment. This creates a direct and irresolvable contradiction between what 'the Agreement' means under s3 and what Australia's actual international obligations are under the IFC Articles."},{"severity":"low","section_a":"5(appropriation for subscription obligations)","section_b":"5B(2)(appropriation for additional share purchases)","confidence":0.55,"description":"Section 5 appropriates the Consolidated Revenue Fund for subscription obligations under the Agreement (i.e., obligations Australia 'has' — implying pre-existing or treaty-mandated obligations). Section 5B(2) provides a separate appropriation for discretionary additional share purchases under ministerial agreements entered into under s5B(1). The existence of two separate appropriation mechanisms for what are economically identical transactions (buying IFC shares) — one treaty-mandated, one discretionary — creates potential ambiguity about which appropriation applies to capital increases that are recommended by the IFC Board but accepted voluntarily by Australia, which may fit both or neither category."}]},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":true,"description":"The original 1955 Act was a simple membership and initial subscription mechanism. It has grown to include: (1) a process for automatically incorporating future treaty amendments via legislative instrument (Section 5A, added later), and (2) authority for additional share purchases beyond the original capital subscription (Section 5B, added later). These additions transformed a one-off membership statute into an ongoing financial framework for Australia's evolving relationship with the IFC."},"complexity_factors":["Short statute with only 7 operative sections (excluding title and commencement)","Single defined term ('the Agreement') but with complex nested structure incorporating multiple treaty amendments by reference","Cross-references to external treaty documents (Articles of Agreement and four specific amendments spanning 1961–2012)","One conditional mechanism (Section 5A) for future treaty amendments with legislative instrument procedure and disallowance timing rules","Regulation-making power with unusual override clause (Section 6(2)) allowing regulations to prevail over other Acts","Appropriation provisions are straightforward without caps or conditions"],"plain_english_summary":"**What this law does:**\n\nThis Act allows Australia to be a member of the **International Finance Corporation (IFC)** — a global financial institution that helps private businesses in developing countries access investment and loans.\n\n**Key things the law does:**\n\n* **Approves Australia's membership** of the IFC (Section 4)\n* **Authorises spending** from government funds (the Consolidated Revenue Fund) to buy shares in the IFC, making Australia a shareholder (Section 5)\n* **Lets the Treasurer officially recognise** any future changes to the IFC's founding treaty (the \"Agreement\") without needing a whole new Act of Parliament each time (Section 5A)\n* **Allows the Minister to buy extra shares** in the IFC beyond the original subscription, with continued government funding authorised (Section 5B)\n* **Gives the Governor-General power to make regulations** to implement the IFC Agreement, and importantly says these regulations can override other Australian laws if necessary (Section 6)\n\n**Who it affects:**\n\nPrimarily the Australian government — specifically the Treasurer and relevant Ministers who manage Australia's financial relationship with the IFC. It doesn't directly affect ordinary Australians, businesses, or their legal rights.\n\n**Why it matters:**\n\nThis is Australia's \"ticket\" into the IFC. Without this law, Australia couldn't legally join, pay for shares, or participate in decisions about how the IFC operates. The law also cleverly future-proofs membership by allowing treaty updates and extra share purchases without constantly passing new legislation."},"summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"The original 1955 Act was a straightforward membership approval and capital subscription law. Over time, its scope has expanded through amendments to include: the ability to buy additional shares beyond the original subscription (section 5B), a formal mechanism for the Treasurer to notify and incorporate future treaty amendments into Australian law via legislative instrument (section 5A), and updated cross-references to the Legislation Act 2003. These additions give the executive branch ongoing and flexible authority to deepen Australia's financial commitment to the IFC without returning to Parliament for fresh legislation each time."},"complexity_factors":["Incorporates an international treaty (the IFC Articles of Agreement) by reference, requiring readers to consult external documents to fully understand obligations","Multiple layers of treaty amendments spanning decades (1961, 1965, 1992, 2012) must be read together","Interaction with the Legislation Act 2003 for timing and disallowance of legislative instruments adds procedural complexity","Regulation-making power that can override other Acts is an unusual and legally significant feature","Consolidated Revenue Fund appropriation operates automatically without annual parliamentary approval, which is a subtle but important constitutional mechanism"],"plain_english_summary":"The Act formally approves Australia joining the International Finance Corporation and commits public funds from the Consolidated Revenue Fund to meet Australia’s capital contributions and future share purchases without separate Budget votes.  \n\nIt gives ministers authority to negotiate share agreements and notify treaty amendments (subject to parliamentary disallowance) and empowers regulations to implement the IFC agreement—even to override other Australian laws—affecting taxpayer liability and executive discretion."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act is limited to approving Australia’s IFC membership, appropriating funds for subscribing to and buying additional IFC shares, providing for formal notice of amendments to the IFC Agreement, and enabling regulations to implement the Agreement. The text does not expand Australia’s obligations or powers beyond implementing and funding participation in the IFC."},"complexity_factors":["Reliance on an external international instrument (the IFC Articles of Agreement and listed amendments) for operative content (s3).","Financial appropriation from the Consolidated Revenue Fund for subscriptions and further purchases, which creates fiscal commitments (ss 5, 5B).","Delegated powers and procedural timing under the Legislation Act for notices of amendment via legislative instrument (s5A(1)–(2)).","Ministerial discretion to determine terms and conditions for additional share purchases (s5B(1)(b)), creating executive decision-making space.","Regulation‑making power that displaces inconsistent federal statutes or instruments, raising potential legal-precedence and interpretive issues (s6)."],"plain_english_summary":"Approves Australia’s membership of the International Finance Corporation and authorises the Commonwealth to pay for Australia’s share subscriptions and any additional share purchases from the Consolidated Revenue Fund (ss 4–5, 5B). The Treasurer may notify treaty amendments by legislative instrument (s5A). The Minister may agree to buy extra shares on terms the Minister sets (s5B). The Governor‑General may make regulations to give effect to the Agreement, and those regulations operate despite inconsistency with other Acts (s6)."},"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/international-finance-corporation-act-1955","history":"/api/acts/international-finance-corporation-act-1955/history","analysis":"/api/acts/international-finance-corporation-act-1955/analysis","conflicts":"/api/acts/international-finance-corporation-act-1955/conflicts","importantCases":"/api/acts/international-finance-corporation-act-1955/important-cases","documents":"/api/acts/international-finance-corporation-act-1955/documents"}}