Bulk Handling Act 1967

The Act builds around a limited set of recurring legal and commercial concepts. Each is defined or used in the text and carries specific legal consequences.

• Company and custodian role. "Company" means Co‑operative Bulk Handling Limited as defined in s 5. The Company’s legal position in relation to grain is expressly custodial, not proprietary; receival of grain does not vest ownership in the Company and it is a custodian for reward (s 18(1)-(3)). That allocates title to the grower or the person entitled to obtain delivery, while the Company exercises possession and control subject to statutory duties.

• Grain, bins and terminal elevators. "Grain" is limited to seeds of wheat and barley (s 5). "Bin" and "terminal elevator" are defined as storage and port infrastructure respectively, with ancillary plant and equipment included (s 5). Section 52 also contemplates approved seeds other than wheat and barley, subject to Ministerial approval and segregation obligations.

• Grade and standards. Grade is defined by reference to the standard or standards adopted by the Company (s 5 and s 6A). The Company must determine or cause a determination of grade in accordance with standards it adopts, after consulting persons it considers appropriate (s 6A(1)-(2)). Grade determinations at receival are made by an officer and may, on dispute, be referred for further determination under prescribed procedures (s 43).

• Documentation: weighbridge tickets and warrants. On receipt the Company must weigh the grain, determine grade and issue a weighbridge ticket containing specified particulars (s 36). Warrants are serially numbered documentary instruments issued on request or at the Company’s discretion (s 37). Warrants are negotiable and transferable by endorsement but remain subject to liens and any right or interest in the grain (s 38(2)-(3)).

• Charges, lien and priority. The board fixes charges for receipt, handling, storage and delivery (s 34). The Company holds a statutory lien in priority to all other claims over grain it receives for the charges payable under the Act (s 35(1)). The Act declares that particular statutory charges or contributions the Company pays on behalf of a grower are debts due to the Company and are first charges in priority to other claims on funds payable under compulsory marketing laws (s 34D(2); s 51(1)(a)).

• Application of income and reserves. The Act prohibits distribution of profits to members and directs all income and property to the Company’s objects (s 35A(a)-(b)). The Company may set aside reserves from profits, apply them to contingencies or business purposes, reduce indebtedness and invest them in the exercise of director discretion (s 35A(c)-(d)). Section 14 requires moneys from any excess of outturn to be retained in a special reserve to meet shortages, with transfers to general funds permitted above a $200,000 threshold.

• Risk allocation and insurance. The Company must insure grain in its custody to full insurable value against specified risks and may use insurance proceeds to replace destroyed or damaged grain or apply them to a reserve for shortages (s 11(1)-(3)). The Company is relieved from liability for failure or delay in delivery caused by listed force majeure events or unforeseen causes not attributable to its negligence (s 15).

• Dispute resolution and arbitration. The Act provides rapid arbitration processes for shipment disputes with a 24 hour target for awards (s 48(3)) and sets out procedures for sealed sampling and Department of Agriculture inspection for non‑shipment delivery disputes (ss 48-49). Costs of arbitration fall on the party against whom the award is given (s 50).

• Compulsory marketing interaction. During compulsory marketing, the Act modifies some processes: special object charges remain payable as charges credited to the grower and recoverable in priority to other claims; warrants need not be issued but substitute documents may be agreed with the marketing authority and approved by the Minister; the Company’s remuneration for services may be negotiated with the marketing authority (s 51).

• Regulation and Ministerial oversight. The Governor has broad regulation‑making power to give effect to the Act and to prescribe operational detail, including fines for breach of regulations up to specified sums (s 53). The Minister receives annual financial statements and may direct storage of ballot records for secret ballots (s 12(1); s 17(4)).

These concepts interlock to create a custodial, regulated commercial operator with enforced procedural safeguards for growers, a statutory priority for Company charges, and delegated powers to set specific standards and charges within the Act’s constraints.

The Act allocates legal rights and duties among distinct groups. The statutory text itself makes clear who pays, who decides, and whose choices are constrained.

• Growers. The Act repeatedly uses "grower" to denote the person delivering grain and those entitled to obtain delivery from bulk stocks held by the Company (s 5; s 18(3)). Growers retain proprietary interest in grain despite its delivery to the Company (s 18(1)-(3)). Growers pay charges fixed by the Company for receipt, handling, storage and delivery (s 34). During compulsory marketing the charge in s 34A remains payable by, and recoverable from, the grower to whom it is credited (s 51(1)(a)). Growers are the legal beneficiaries of warrants and the holders of title that the Company must preserve.

• The Company and its board. The primary regulated entity is Co‑operative Bulk Handling Limited, defined as the Company (s 5). The board fixes charges (s 34), may create and manage reserves (ss 14, 35A(c)-(d)), must insure grain (s 11), must issue weighbridge tickets and warrants (ss 36-37), and must keep records and provide audited financial statements to the Minister (s 12). The Company has rights to priority liens over grain and to recover certain sums from persons who wrongfully convert grain (s 35; s 7(2)). The Company is required to adopt standards for grade determination and consult before adoption (s 6A).

• Warrant holders and holders by negotiation. Warrants are negotiable instruments transferable by endorsement; the person in whose name the grain is delivered, the person to whom a warrant is issued, and a holder of a warrant are each liable in respect of conversion where delivery was made in derogation of another’s right (s 38(1)). Warrant holders have rights to samples (s 47) and to receive equivalent weight and quality of grain (s 44). Warrant holders must take delivery by 30 September following receival or risk sale by the Company (s 45).

• Marketing authorities. The Act contemplates interaction with Commonwealth or State marketing authorities such as the Australian Wheat Board and allows for alternate documents to be issued and remuneration arrangements to be negotiated during periods of compulsory marketing (s 51). The Act treats contributions paid under certain biosecurity statutes as recoverable debts and first charges (s 34D).

• Minister and Governor. The Minister receives financial returns from the Company and lays them before Parliament (s 12(1)). The Minister and Governor have rulemaking and supervisory roles: the Governor makes regulations to operationalise the Act and may, in limited circumstances, fix special object charges by Order in Council after satisfying shareholder consent rules (s 34C(5); s 53). The Minister may approve documents agreed with a marketing authority in compulsory marketing periods (s 51(1)(b)) and may direct ballot document storage (s 17(4)). The Minister’s office also nominates officers of the Department of Agriculture for inspection duties under s 49.

• Auditors and public officers. Officers nominated by the Auditor General have free access to the Company’s books and may copy records (s 12(2)). Regulatory enforcement includes prescribed penalties for obstruction of ballot processes and for breaches of regulations (s 17(3); s 53(2)(i); s 54).

• Third parties: insurers, buyers, carriers. The Company must insure grain with insurers that comply with Commonwealth insurance law (s 11(1)). Buyers of grain from the Company are affected by lien priority (s 35) and by the Company’s power to sell uncollected grain and pay proceeds to the warrant holder after deductions (s 45(2)). Shippers and charterers must be notified by warrant holders in shipment cases (s 46).

Groups not directly mentioned are nevertheless affected through statutory interactions. For example, where the Company pays statutory biosecurity or eradication contributions on behalf of a grower, the Company acquires a first charge against funds payable to the grower (s 34D(1)-(3)), which affects the grower’s creditors and any marketing receipts payable under compulsory marketing laws (s 51(1)(aa)). The Act also provides that some of its liens and charges are to be treated as covered by the Commonwealth Personal Property Securities Act 2009 (ss 34D(4); 35(2A); 51(3)), thereby signalling an interface with the Commonwealth security registration regime for priority effects.

In short, the Act places operational duties centrally on the Company and decision powers with its board and officers, while preserving growers’ title and entitling warrant holders to negotiable rights, subject to statutory liens and procedural constraints.

The Act assigns a series of express duties to the Company and rights to growers, warrant holders and other parties. Below are the principal obligations and entitlements with statutory sections for reference.

Company duties

• Determination of standards: The Company must determine or cause to be determined the grade of grain according to standards it adopts, after consultation as it considers appropriate (s 6A(1)-(2)). This delegates technical grading standards to the Company while embedding a consultation obligation.

• Receipt and handling: The Company must receive all grain tendered in bulk, subject to limited exceptions for unsound or inferior grain and reasonable time and place constraints (s 42(1)-(2)). The Company must handle grain in accordance with the Act notwithstanding any contract to the contrary (s 41).

• Weighing and documentation: On receipt the Company must weigh and determine grade and issue a weighbridge ticket with prescribed particulars (s 36(1)-(3)). It must issue a serially numbered warrant upon request or at its option (s 37(1)-(2)).

• Insurance: The Company must insure grain at its expense to full insurable value against specified risks with insurers complying with Commonwealth insurance law (s 11(1)). The Company can receive and discharge insurance moneys and may apply proceeds to replace destroyed or damaged grain or place them in reserve for shortages (s 11(2)-(3)).

• Financial reporting and record access: The Company must prepare an annual balance sheet and revenue account and forward them to the Minister by the prescribed date; the Minister will cause copies to be laid before Parliament (s 12(1)). Officers of the Auditor General have free access to books and records and may copy them; records that are prescribed must be kept and are open for inspection (s 12(2)-(3)).

• Allowance of port facilities: The Company must allow use of its bulk handling port facilities and equipment upon payment of prescribed charges, subject to the Act and regulations (s 19).

• Lien and charges: The Company must assert and is given a statutory lien in priority to all other claims over grain received, for charges payable under the Act (s 35(1)).

• Obligations for discrepancies and shortages: The Company is required to apportion loss or damage rateably among those entitled when loss occurs for which it is not relieved; where it is unable to deliver because of shortages not excused by s 15, it shall pay each person the value of the undelivered quantity as of specified reference points (s 15(2); s 16(1)-(2)).

Grower and warrant holder rights

• Title and proprietary interest: The grower or person entitled to delivery retains proprietary interest in grain; receival by the Company does not transfer ownership to the Company (s 18(1)-(3)).

• Right to receive samples and quality guarantees: Warrant holders are entitled to receive a sample from the bin, truck or container delivering to them (s 47(1)). They are entitled to equivalent weight and a grade at least equal to that specified on the warrant subject to permitted variations (s 44). They may require sampling or arbitration where disputes over quality arise (ss 48-49).

• Negotiability of warrants: Warrants are negotiable and transferable by endorsement, subject to liens and others’ rights in the grain (s 38(2)-(3)).

• Right to delivery and timeline: Warrant holders must take delivery by 30 September following receival or the Company is relieved of delivery obligations and may sell the grain and pay proceeds less charges and sale expenses (s 45(1)-(2)).

• Rights on dispute: A warrant holder can require discontinuance of loading for shipment and trigger an arbitration by appointment of arbitrators; sealed samples are to be provided and arbitration should be completed with least delay and, in any case, not later than 24 hours after reference (s 48(1)-(3)). For non‑shipment disputes the holder may submit to arbitration or Department of Agriculture inspection with prescribed fees (s 49).

Third party and public duties

• Polls of growers: If a poll of growers is required, it must be by secret ballot; the person conducting the poll may give directions and ensure secrecy; obstruction or non‑compliance is punishable (s 17).

• Regulatory duties: The Governor may make regulations for full administration of the Act, including conduct of bulk handling, records, sampling, issue and replacement of warrants, arbitration settlement, and penalties (s 53(1)-(2)). The Minister has powers to require ballot records to be stored in particular ways (s 17(4)) and to approve documents agreed with marketing authorities during compulsory marketing (s 51(1)(b)).

Liabilities and immunities

• Liability for conversion: The Company is not relieved from liability for conversion; it may create an assurance or indemnity fund to manage such liability and may recover from a wrongdoer amounts it becomes liable to pay if it received grain in good faith without notice of conversion (s 7(1)-(2)).

• Force majeure protection: The Company is not liable for loss arising from riot, industrial dispute, civil commotion, war, act of God or other unforeseen causes not attributable to its negligence; loss is to be apportioned rateably among those entitled (s 15(1)-(2)).

• Set‑off and payment authorisations: A person obtaining delivery is authorised to pay charges and set them off against moneys payable for the grain or an equivalent quantity (s 35(2)). Payments by the Company under specified eradication or biosecurity Acts create debts due to the Company and first charges over moneys payable to the grower (s 34D(1)-(3)).

These duties and rights form the operational core of the Act. They delineate the Company’s responsibilities to growers and warrant holders, allocate financial priority to the Company’s charges, and preserve statutory remedies such as arbitration, lien enforcement and recovery for conversion.

The Act provides multiple enforcement levers, both civil and regulatory, and prescribes fines or payment liabilities for particular conduct. The statutory enforcement architecture mixes private remedies, public penalties, administrative oversight and arbitration.

Monetary penalties

• General penalty. Where the Act does not specifically provide a penalty, the general maximum penalty is $2,000 (s 54). This creates a catch‑all fine for regulatory breaches not otherwise specified.

• Specific offences and fines. Section 17(3) makes it an offence to refuse or fail to comply with directions for secret ballots or to obstruct the ballot process, punishable by a $1,000 fine. Section 53(2)(i) authorises regulations to impose penalties not exceeding $2,000 for breaches of regulations made under the Act.

Administrative enforcement and oversight

• Ministerial receipt and Parliamentary laying of financials. The Company must furnish annual balance sheets and revenue accounts to the Minister by the prescribed date; the Minister is to cause copies to be laid before both Houses of Parliament as soon as practicable (s 12(1)). This provides a transparency and political oversight mechanism.

• Auditor General access. Officers nominated by the Auditor General have unfettered access to the Company’s books and may copy or extract documents (s 12(2)). Prescribed records must be kept and are open for inspection (s 12(3)), which supports audit and compliance monitoring.

• Regulatory instruments. The Governor may make regulations to implement and administer the Act, including procedures for handling grain, record keeping, sampling, warrants, and arbitration processes (s 53). Regulations may prescribe fees, procedural details and fines within the statutory maxima.

Civil remedies and priority instruments

• Lien and priority. The Company’s lien over grain is statutory and is declared to have priority over all other claims in respect of charges payable (s 35(1)). The Act also declares that certain charges are to be treated under s 73(2) of the Commonwealth Personal Property Securities Act 2009, so that the lien/charge falls within the Commonwealth PPSA framework for priority where relevant (s 35(2A); s 34D(4); s 51(3)).

• Recovery for conversion. The Company may recover from a person who wrongfully converted grain any sums and costs for which it is liable because it received the grain in good faith without notice of conversion (s 7(2)). Individuals whose right or title is affected by derogatory deliveries may pursue liability under s 38(1).

• Compensation for shortages. If the Company is unable to deliver because of shortages not covered by s 15, it must pay the value of the undelivered quantity to those entitled, measured by specified market references or at the Minister’s election, and growers remain liable for charges that would have been payable had delivery occurred (s 16(1)-(3)).

Dispute resolution and timing

• Arbitration for shipment disputes. Where a dispute arises about quality or condition of grain tendered for shipment, the warrant holder may require discontinuance of delivery operations and both parties appoint arbitrators; sealed samples are used and arbitrators must make an award with the least possible delay, and in any case not later than 24 hours after reference (s 48(1)-(3)). The arbitration is to be conducted as a reference under the Commercial Arbitration Act 2012 where applicable.

• Arbitration and Departmental inspection for other disputes. For delivery disputes other than shipment, the warrant holder may require arbitration and sealed samples are to be taken in the prescribed manner; upon payment of prescribed fees the samples are to be forwarded to the Department of Agriculture for inspection and decision (s 49).

Operational enforcement mechanisms

• Sale of grain on non‑collection. If a warrant holder does not take delivery by 30 September after receival, the Company is relieved from its obligation to deliver and may sell grain in prescribed manners and pay proceeds to the warrant holder after deducting charges and sale expenses (s 45(1)-(2)). The Governor may extend the delivery date by Order in Council in a state of emergency (s 45(3)).

• Recovery of statutory contributions. The Company is authorised to pay eradication or biosecurity contributions on behalf of a grower; amounts so paid are debts due to the Company by the grower and are first charges on moneys payable to that grower in respect of the grain (s 34D(1)-(3)).

The Act therefore relies on a combination of private law rights (lien, conversion recovery), expedited arbitration for operational disputes, regulatory fines for prescribed breaches, public audit and reporting obligations, and market‑facing remedies such as sale of uncollected grain and compensation for shortages to enforce compliance and allocate loss.

The Act is expressly designed to operate alongside and in some respects within frameworks established by other State and Commonwealth laws. The statute itself cites or declares interactions with a suite of other laws; the following summarises those statutory cross‑references and the mechanisms by which interactions are effected.

Companies and co‑operatives law

• Historical company statutes. The Company is defined by reference to earlier Companies Acts (s 5). The definitions and certain rights, such as purchase of shares out of reserve funds, are framed by reference to the Companies (Co‑operative) Act 1943 and other company law provisions as they existed historically (s 13). Marginal notes in the compilation table indicate that those Acts have been repealed and replaced at Commonwealth and State levels, but the Act’s text is tailored to a co‑operative Company.

Personal Property Securities Act 2009 (Commonwealth)

• The Act contains several declarations that specific charges, liens and contributions are to be treated as within the scope of s 73(2) of the Commonwealth Personal Property Securities Act 2009 (PPSA), thereby linking the statutory lien/charge to the national PPSA regime. Section 34D(4) declares that s 73(2) of the PPSA applies to a charge created under s 34D(2)(b). Section 35(2A) declares that s 73(2) of the PPSA applies to a lien created under s 35(1). Section 51(3) makes the same declaration in respect of compulsory marketing charges created under s 51(1)(a) or (aa). These declarations create an intended legal route for asserting priority under the PPSA framework.

Insurance and Commonwealth insurance law

• The Company’s insurance obligations are couched by reference to Commonwealth insurance legislation. Section 11(1) requires the Company to insure with a public insurance company or underwriters who comply with the Insurance Act 1932, as amended. The footnote indicates a later replacement by the Insurance Act 1973 at Commonwealth level. This cross‑reference conditions the acceptability of insurers and links the Company’s risk management duties to Commonwealth insurance regulation.

Commercial Arbitration Act 2012 (State)

• Section 48(3) states that arbitration under s 48 shall, subject to the express provisions of this Act, be conducted as, and have all the incidents of, a reference under the Commercial Arbitration Act 2012. That imports the State arbitration framework into the quick arbitration process for shipment disputes, subject to the 24 hour award expectation in s 48(3).

Biosecurity and eradication statutes

• The Act authorises the Company to pay contributions under specified biosecurity and eradication statutes. Section 34D(1) authorises payments under the Plant Pests and Diseases (Eradication Funds) Act 1974 and regulations made under the Biosecurity and Agriculture Management Act 2007 s 141. Payments made may be recovered and have priority as first charges over moneys payable to the grower (s 34D(2)-(3)). This creates a nexus between statutory biosecurity obligations and the Company’s collection and recovery powers.

Compulsory marketing and marketing laws

• The Act contemplates operation during compulsory marketing laws of State or Commonwealth that extend to grain handled by the Company. Section 51 modifies Company duties and entitlements during compulsory marketing, making special object charges recoverable and having priority over other claims on marketing receipts, permitting substitute documents in place of warrants with Ministerial approval, and allowing negotiation of Company remuneration with the relevant marketing authority (s 51(1)(a)-(b), (d)). The Act cites the Wheat Marketing Act 1979 and other marketing legislation in marginal notes and compilation history, establishing an overlapping field where marketing laws can alter commercial flows to and from the Company.

Department of Agriculture functions

• The Act gives the Department of Agriculture a direct role in disputes over quality where delivery is not for shipment. Section 49 requires sealed samples to be sent to the Department on payment of prescribed fees and authorises an officer nominated by the Minister to inspect and give a decision. The footnotes indicate that the statutory name of the Department may have been altered by other Orders and Acts.

Other cross‑references and transitional provisions

• The Act has been amended and partially repealed over time, with transitional schedules such as Schedule 1 to the 2002 Amendment Act preserving obligations such as debentures issued pre‑commencement and dealing with tolls and debenture conversion terms. The compilation table at the end of the Act lists many amending statutes and reprints, indicating interactions and precedence between the Bulk Handling Act and later grain marketing and financial administration statutes.

In practical terms these statutory cross‑references mean the Act is not standalone. Its operation depends on compliance with Commonwealth insurance standards, PPSA registration and priority rules where declared, the State arbitration code for expedited references, Department of Agriculture sampling regimes, and any active compulsory marketing law that may change the Company’s document and payment obligations. The Act itself anticipates these intersections by including explicit declarations and by delegating procedural detail to regulations to be made by the Governor (s 53).

The Act includes an internal compilation table and marginal notes that record amendments, repeals and reprints. The legislative history as set out in the text is a chronological record of amendments and related statutes.

Key dates and instruments recorded in the Act’s compilation table and marginal notes include:

• Original enactment and commencement. The Bulk Handling Act 1967 (No. 15 of 1967), assented 20 October 1967, commenced 4 January 1968 (s 2 and Gazette references). The stated object at the head of the Act is to make better provision for bulk handling of grain by the Company.

• Early amendments and reprints. Reprints and early amendment Acts are listed, including the Bulk Handling Act Amendment Acts of 1971 (No. 4 of 1971), 1972 (No. 45 of 1972), and the Metric Conversion Act adjustments in 1973 (No. 69 of 1973). A reprint authorised 15 January 1970 and later reprints are recorded.

• 1974 and later amendments. The Bulk Handling Act Amendment Act 1974 (No. 64 of 1974) inserted ss 34A and 34C concerning special object charges and the process for imposing them in seasons after 1973-1974, and established the $1.10 per tonne ceiling for wheat special object charges subject to Order in Council under s 34C(5).

• 1976-1989 changes. Amendments such as No. 29 of 1976, No. 13 of 1979, No. 3 of 1981, No. 58 of 1982, No. 115 of 1982 and others altered provisions including share purchase powers, weighbridge ticket details, and penalties. The Agricultural Legislation (Penalties) Amendment Act 1989 increased certain penalties and is reflected in s 54 amendments.

• 2000-2007 and 2011-2013 adjustments. The Bulk Handling Repeal Act 2000 partially repealed some parts and provided a restructured scheme; later the Bulk Handling Amendment Act 2002 (No. 29 of 2002) made multiple textual changes, including insertion of s 6A, and deletion of Parts III and IV (ss 20-30) as noted in the margins. The Grain Marketing Act 2002 (No. 30 of 2002) and the Biosecurity and Agriculture Management (Repeal and Consequential Provisions) Act 2007 (No. 24 of 2007) and the Personal Property Securities (Consequential Repeals and Amendments) Act 2011 (No. 42 of 2011) each amended or provided consequential changes, including declarations regarding application of the PPSA to Company liens or charges (ss 34D(4); 35(2A); 51(3)). The Commercial Arbitration Act 2012 (No. 23 of 2012) was referenced in s 48 following amendment.

• Reprints and consolidation. The Act has been reprinted multiple times; the text records reprints authorised on 15 January 1970, 31 March 1980, 13 September 1993, 5 December 2003 and 9 August 2013. The compilation table details assent and commencement dates for each amending instrument and notes transitional provisions where applicable.

• Deletions and omissions. Several sections and whole parts have been expressly deleted or omitted, with marginal notes recording deletions by later Acts, particularly the 2002 Amendment Act which deleted many provisions (e.g., Parts III and IV, ss 20-30) and restructured the Act. Footnotes indicate that some named Acts cited in the original text have themselves been repealed or replaced, for example the Companies (Co‑operative) Act 1943 and older Insurance Acts, with explanatory marginal notes noting replacements.

• Transitional schedule. The Bulk Handling Amendment Act 2002 Schedule 1 contains transitional and savings provisions, including the treatment of debentures issued under earlier versions and tolls paid by growers pre‑commencement, preserving debts and outlining repayment terms (Schedule 1, cl 2-3).

This textual compilation and the marginal notes constitute the Act’s recorded amendment history as presented in the source document. The Act’s present form reflects successive policy adjustments to operational detail, financial reporting, charges and security regimes, and explicit adaptation to Commonwealth frameworks such as the PPSA. The compilation table is the legislative text’s source for precise dates, amendment numbers and commencement provisions.

The Act as supplied contains no reported cases, judicial interpretations or litigation summaries. The statutory text and compilation table make cross‑references to arbitration under the Commercial Arbitration Act 2012 and provide procedural mechanisms for dispute resolution, but they do not cite court decisions or judicial history.

Consequence of absence in the source

• No judicial authorities are cited in the Act itself. Therefore the statute’s operational meaning as given here rests solely on the statutory language, the defined terms and the interaction clauses with other legislation. Any judicial interpretation, statutory construction or precedent that might affect the scope of provisions such as the Company’s lien, the negotiability of warrants, the scope of the Company’s custodial obligations, or the measure of damages for conversion is not present in the supplied text.

• The Act provides its own dispute resolution procedures for specific operational disputes. Section 48 prescribes a rapid arbitration procedure for shipment disputes and cross‑references to the State Commercial Arbitration Act 2012 to define the incidents of reference. Section 49 prescribes administrative determination by the Department of Agriculture for non‑shipment disputes on payment of prescribed fees. Those mechanisms indicate the legislature’s preference for administrative and arbitral resolution within operational timeframes for particular categories of disputes rather than immediate pursuit of court proceedings, but the Act does not and cannot preclude court proceedings where private law rights such as conversion, breach of statutory duty or debt obligations are relevant.

What to expect in practice (based on statutory design)

• Operational disputes arising under ss 43-50 are expected to be resolved primarily through the arbitration and Departmental inspection routes mandated by the text. Parties may, however, retain common law or other statutory remedies not displaced by the Act; the statute does not preclude civil actions to enforce conversion liability (s 7) or the Company’s lien and set‑off rights.

• The Act’s declarations relating to the PPSA suggest that litigation over priority may invoke Commonwealth PPSA rules in practice, in which case case law construing the PPSA would be relevant even though none is cited within the Act.

If a litigant or adviser requires authoritative case law interpreting specific provisions of the Bulk Handling Act 1967, a search of judicial databases and subsequent cases is necessary because the legislative text itself contains no litigation history or examples.

The Act contains several features that create practical traps, priority effects and operational constraints that parties commonly misunderstand if reading only the headline provisions.

• Company is custodian, not owner, but holds priority lien. Receival of grain does not vest proprietary title in the Company; growers retain ownership (s 18(1)-(3)). At the same time the Company holds a statutory lien in priority to all other claims for charges payable in respect of that grain (s 35(1)). This combination preserves grower title while giving the Company a powerful enforcement mechanism over proceeds and delivered grain. Practitioners should note that the lien is declared to operate under the Commonwealth Personal Property Securities Act 2009 where specified (s 35(2A)), which affects registration and priority considerations.

• Warrants are negotiable but subject to liens and third party rights. Warrants are negotiable instruments transferable by endorsement (s 38(2)-(3)), but every person acquiring a warrant takes it subject to any lien and any person’s right, title or interest in the grain. That means a bona fide holder of a warrant must check for existing statutory charges and liens; the Act does not guarantee immunity from prior claims.

• Special object charges require a multi‑district shareholder approval process and Governor’s Order in Council. The imposition of special object charges for seasons after 1973-1974 requires the Company to submit a proposal, call meetings in at least two places in each director district, and secure district and aggregate majorities under a detailed voting scheme set out in s 34C(1)-(4). Only after those requirements and Governor’s satisfaction may an Order in Council fix the charge and it is capped for wheat at $1.10 per tonne (s 34C(5)(a)). Failure to comply with the procedural voting and notice requirements will invalidate a charge imposed under s 34A.

• Compulsory marketing alters the regime for warrants and remuneration. During compulsory marketing, the Company may not be obliged to issue standard warrants and instead may issue documents agreed with the relevant marketing authority and approved by the Minister (s 51(1)(b)), and the Company’s remuneration may be negotiated with the marketing authority (s 51(1)(d)). This alters the usual flows and the application of the Company’s lien and special charges, and the Act makes those marketing receipts liable to first charges under s 51(1)(a) and (aa).

• Time limit for taking delivery is strict. A warrant holder must take delivery on or before 30 September next following receival (s 45(1)). If delivery is not taken the Company is relieved of its obligation and may sell the grain and pay proceeds to the warrant holder after deductions (s 45(2)). While s 45(3) permits the Governor to extend this in a declared state of emergency, no other statutory extension is provided. Parties often miscalculate the commercial calendar or fail to ensure timely shipment or collection.

• Company’s liability limited for force majeure and unforeseen causes. The Company is not liable for loss or delay when caused by listed events or unforeseen causes not attributable to its negligence (s 15(1)). When loss occurs the Company is to apportion loss rateably among those entitled (s 15(2)), which limits individual claims and moves risk into a pooled allocation rather than individual performance claims.

• Recovery of Company payments under biosecurity laws creates a first charge. If the Company pays a statutory contribution for a grower under specified biosecurity statutes, that amount becomes a debt due to the Company by the grower and a first charge in priority to all claims on moneys payable to that grower in respect of the grain, other than a charge created under another section (s 34D(2)). That changes creditor expectations and the priority of claims on marketing receipts.

• Arbitration timeframes are compressed. For shipment disputes s 48 requires arbitrators to make an award with least possible delay, and in any case not later than 24 hours after reference (s 48(3)). This tight turnaround favours operational continuity but leaves limited time to assemble evidence, instruct experts or seek interim judicial relief in practice.

• Records and ballots have specific procedural obligations and sanctions. Polls of growers must be by secret ballot (s 17(1)). The person conducting the poll can give directions and non‑compliance attracts a $1,000 penalty (s 17(3)). The Company must keep ballot materials as the Minister may direct (s 17(4)). Failure to follow these procedures can lead to invalid votes and penalties.

• No explicit duty to determine variety. A determination made by an officer in Perth or the Department of Agriculture is not to include determination of the variety of wheat (s 43(5a)(b)). If variety matters contractually, growers should not assume the statutory grading process will resolve varietal disputes.

• Limits on distribution and use of Company profits. The Act prohibits any part of the Company’s income or property from being paid as profit to members (s 35A(a)); surplus on winding up must be applied as directed by the State Treasurer (s 35A(e)). Corporate finance and dividend policies are constrained and any transaction that looks like a distribution to members would conflict with the statute.

These specifics create enforcement stakes and practical risk allocation consequences that commercial parties must accommodate in contracts, credit arrangements and operational planning.

This section synthesises the statutory duties into a practical compliance checklist for participants: the Company, growers, warrant holders, marketing authorities and third party creditors. Each item cites the relevant statutory provision.

For the Company

• Adopt and publish standards for grading. Ensure formal adoption of standards for grade determination and record the consultation steps taken with appropriate persons as required by s 6A(1)-(2). Keep copies of consultation records to demonstrate compliance.

• Maintain administrative procedures for receival. Operate receival systems that comply with the obligation to weigh and determine grade and issue weighbridge tickets with prescribed particulars immediately on receival (s 36). Assure sequential numbering control and that no duplicate weighbridge ticket numbers are issued for the same grain type within a season (s 36(3)).

• Issue warrants and manage negotiability. Issue serially numbered warrants on request or of the Company’s own motion, and maintain accurate registers of warrants to ensure negotiability and track endorsements (s 37(1)-(2); s 38(2)-(3)). Ensure warranty clauses reflect that warrants are subject to existing liens and rights.

• Insure grain to full insurable value. Procure insurance compliant with applicable Commonwealth insurance legislation and ensure the policy covers fire, explosion, storm, tempest, flooding and other insurable risks that may be prescribed (s 11(1)). Implement procedures for claims handling and the application of insurance moneys either to replacement grain or a shortages reserve (s 11(2)-(3)).

• Financial reporting and record keeping. Prepare annual balance sheet and revenue account and forward to the Minister by the prescribed date; maintain prescribed records for inspection by officers of the Auditor General and the Minister (s 12(1)-(3)). Keep detailed ledger entries for reserves, outturn excess funds and any purchases of shares under s 13.

• Enforce and document lien and charge mechanisms. Exercise the lien for charges as authorised (s 35(1)) and ensure any recoveries for statutory biosecurity contributions are recorded as debts due to the Company and treated as first charges where applicable (s 34D(2)). Where applicable, register security interests under the PPSA in line with the Act’s declarations (ss 34D(4); 35(2A); 51(3)).

• Maintain ballot and governance procedures. Where polls of growers are required, conduct secret ballots, retain ballot materials for any period the Minister directs, and ensure staff and agents understand directions that may be issued by the person conducting the poll (s 17(1)-(4)). Train personnel to prevent obstruction and to comply with ballot directions, as non‑compliance is an offence.

• Manage shortage and loss protocols. Implement procedures to apportion loss rateably on occurrence of loss, and calculate payments where the Company cannot deliver the grain as required by s 16(1)-(2). Maintain a special reserve account for excess outturn moneys and transfer excess above $200,000 to general funds only under s 14.

• Comply with shipment and sampling rules. For shipments, implement sampling and sealed sample preparation processes that enable the arbitration procedures under s 48; ensure staff can suspend delivery operations on demand and comply with the 24 hour arbitration timetable.

For growers and warrant holders

• Understand title and timing. Remember that delivery to the Company does not change title holder; however the Company has a statutory lien for charges (s 18; s 35). Take steps to obtain or present warrants promptly and to collect grain before the 30 September deadline to avoid sale under s 45.

• Track and check weighbridge tickets and warrants. Verify weighbridge tickets contain required particulars (s 36(2)) and ensure warrants match the grain type, weight and grade. Keep endorsements and transfer records for negotiable warrants (s 37; s 38).

• Exercise sampling and dispute rights promptly. If dissatisfied with grade determinations, follow prescribed procedures for re‑determination and arbitration, including requesting determinations at Perth or by the Department of Agriculture under s 43(5). For shipment disputes, invoke the arbitration and sealed sample process promptly (s 48).

• Account for statutory contributions and charges. Be aware that the Company may pay statutory biosecurity contributions on a grower’s behalf and recover them as a first charge (s 34D(1)-(3)). Keep records proving payments and be mindful that special object charges may be imposed with shareholder and Governor processes.

For marketing authorities and shippers

• Negotiate documents and remuneration during compulsory marketing. If compulsory marketing is in force, be prepared to agree substitute documents with the Company to replace warrants, subject to Ministerial approval, and to negotiate remuneration arrangements for the Company’s services as permitted by s 51(1)(b) and (d).

• Coordinate shipping notifications. Warrant holders must notify the Company immediately on arranging a charter and give updated arrival and last port of call information at least six days before arrival (s 46(1)-(2)). Shippers and their agents must integrate these notification requirements into logistics systems.

General compliance points

• Make and follow regulations. The Governor’s regulations will give practical effect to many processes; consult and comply with regulations about sampling, record keeping, fee schedules, and penalties when they are promulgated (s 53).

• Use PPSA registration where appropriate. Given the Act’s declarations about application of the PPSA to certain liens and charges, parties with security interests in grower receipts should consider PPSA registration or advice to clarify priority against the Company’s statutory charges (ss 34D(4); 35(2A); 51(3)).

• Maintain up to date legal review. The Act has been substantially amended over time and references other statutes; maintain legal review procedures to track changes in insurance, livestock or biosecurity law that may affect obligations under s 11 and s 34D, as well as any future regulation changes under s 53.

This compliance outline follows the statutory prescription in the Act and is designed to map obligations into operational controls. It focuses on record keeping, timing, lien and payer awareness, and rapid dispute resolution consistent with the Act’s expedited arbitration hooks.