Tasmania act

Electricity Companies Act 1997

In ForceTAS

Jurisdiction

Tasmania

Act Number

69 of 1997

Collection

act

Plain English Summary

8/10 complexity

The law enables one or more Crown‑owned companies (shares held by the Minister and Treasurer) to take over non‑generation parts of the Hydro‑Electric Corporation, sets commercial duties and reporting for their boards, and preserves employee and contract continuity on transfer. The Treasurer and members hold strong powers—transfer notices, guarantees, binding directions and instructions—creating government control, potential taxpayer exposure for guarantees, and tight limits on selling core network assets.

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What it does

This Act sets out the legal mechanics for creating one or more share‑limited electricity companies out of public electricity operations, defines the governance and financial framework that will apply to those companies and their subsidiaries, and provides a statutory mechanism by which parts of the Hydro‑Electric Corporation’s operations, property, rights and liabilities may be transferred to the Crown or to such a company (a "transfer notice"). The Minister initiates the formation process (s 5), members of each company are the Minister and the Treasurer (s 8), and shares issued to the members are held in trust for the Crown (s 9). On a transfer day specified in a transfer notice made by the Treasurer, specified operations, property, rights and liabilities of the Hydro‑Electric Corporation vest in the transfer recipient, and associated liabilities and contracts move with them (s 10(2), (5)-(6)). The Treasurer must publish a transfer notice in the Gazette (s 10(2)), and must first provide a draft and allow the Hydro‑Electric Corporation a reasonable opportunity to comment (s 10(3)).

The Act prescribes the companies’ principal objectives on incorporation: operate in accordance with sound commercial practice and maximise sustainable return to shareholders (s 6). It requires particular provisions to appear in the memorandum and articles on incorporation (s 7 and Schedule 1), including parliamentary approval requirements for any special resolution to alter those instruments (Schedule 1, Part 1, cl 1). It also integrates the companies into the Government Business Enterprises regime by applying provisions of the Government Business Enterprises Act 1995 for guarantee fees and tax equivalents (ss 13-14), and by making Treasurer’s Instructions applicable (s 21A).

The Act imposes governance and reporting obligations: members must provide a statement of expectations (s 11A); members may give directions to a company or a wholly‑owned subsidiary subject to specified procedural steps (s 11B) and boards have 21 days to object to a direction (s 11C); boards must prepare annual statements of corporate intent (s 11F) and six‑monthly performance reports to members (s 18A), and must notify members of adverse developments (s 18B). The Act also contains transitional arrangements for transferring staff and continuity of licences and contracts (Schedule 2, cll 3-4), and consequential amendments to other statutes (s 26 and Schedule 3). Regulations may be made to support transfer notices, dispute resolution and to create regulatory offences up to 10 penalty units (s 24(2), (4)).

Current sections

Direct links to the current provisions in Electricity Companies Act 1997.

Part 1

Preliminary

Part 1 Preliminary

Short title

1 Short title

This Act may be cited as the Electricity Companies Act 1997 .

Commencement

2 Commencement

(1) Sections 1 , 24 , 25 , 26(3) and 27 , this section and Schedules 2 and 3 commence on the day on which this Act receives the Royal Assent.

(2) Except as provided in subsection (1), the remaining provisions of this Act commence on a day or days to be proclaimed.

Interpretation

3 Interpretation

In this Act –

[Section 3 Amended by No. 18 of 2025, s. 5, Applied:01 Jan 2026] board of directors, in relation to a company, means the board of directors for the company;

company means a company formed under section 5 ;

[Section 3 Amended by No. 18 of 2001, s. 4, Applied:26 Apr 2001]

[Section 3 Amended by No. 18 of 2001, s. 4, Applied:26 Apr 2001] [Section 3 Amended by No. 78 of 2005, s. 31, Applied:01 Jan 2008] dispose of, in relation to a transmission system, distribution network or part of a transmission system or distribution network, includes –

(a) [Section 3 Amended by No. 78 of 2005, s. 31, Applied:01 Jan 2008] the giving by a company of a right by lease, licence or any other means which would be inconsistent with the company continuing to use, possess or occupy that transmission system or distribution network or that part of a transmission system or distribution network for the primary purpose for which the company was formed under section 5 ; and

(b) [Section 3 Amended by No. 78 of 2005, s. 31, Applied:01 Jan 2008] the disposal of that transmission system or distribution network or that part of a transmission system or distribution network by the company to its subsidiary;

distribution has the same meaning as in the Electricity Supply Industry Act 1995 ;

distribution network has the same meaning as in the Electricity Supply Industry Act 1995 ;

generation has the same meaning as in the Electricity Supply Industry Act 1995 ;

[Section 3 Amended by No. 42 of 2001, Sched. 1, Applied:15 Jul 2001] incorporation means incorporation under the Corporations Act;

incorporation day means the day on which a company is incorporated;

liability includes any liability, duty and obligation, whether actual, contingent or prospective;

[Section 3 Amended by No. 18 of 2025, s. 5, Applied:01 Jan 2026]

[Section 3 Amended by No. 18 of 2025, s. 5, Applied:01 Jan 2026] member, in respect of a company, means a member referred to in section 8 ;

principal objectives means the principal objectives of a company specified in section 6 ;

property means –

(a) any legal or equitable estate or interest (whether present or future and whether vested or contingent) in real or personal property (other than Crown land, within the meaning of the Crown Lands Act 1976 ), including wayleaves; and

(b) money, documents and securities; and

(c) any other rights;

retailing has the same meaning as in the Electricity Supply Industry Act 1995 ;

right includes any right, power, privilege and immunity, whether actual, contingent or prospective;

[Section 3 Amended by No. 42 of 2001, Sched. 1, Applied:15 Jul 2001] subsidiary has the same meaning as in the Corporations Act;

[Section 3 Amended by No. 18 of 2025, s. 5, Applied:01 Jan 2026] subsidiary board, in relation to a subsidiary, means the board of directors for the subsidiary;

transfer notice means a notice made under section 10(2) ;

transmission has the same meaning as in the Electricity Supply Industry Act 1995 ;

[Section 3 Amended by No. 78 of 2005, s. 31, Applied:01 Jan 2008]

[Section 3 Amended by No. 78 of 2005, s. 31, Applied:01 Jan 2008] [Section 3 Amended by No. 18 of 2025, s. 5, Applied:01 Jan 2026] transmission system has the same meaning as in the Electricity Supply Industry Act 1995 ;

[Section 3 Amended by No. 18 of 2025, s. 5, Applied:01 Jan 2026] Treasurer’s Instructions means instructions issued under section 114 of the Government Business Enterprises Act 1995 in accordance with section 21A of this Act;

[Section 3 Amended by No. 18 of 2025, s. 5, Applied:01 Jan 2026] wholly-owned subsidiary, in relation to a company, means a subsidiary of the company that falls within the definition of wholly-owned subsidiary, within the meaning of the Corporations Act, in respect of the company.

4.

[Section 4 Repealed by No. 42 of 2001, Sched. 1, Applied:15 Jul 2001]

Part 2

Companies

Part 2 Companies

Division 1

Formation and status of companies

Division 1 Formation and status of companies

Formation of companies

5 Formation of companies

(1) [Section 5 Subsection (1) amended by No. 42 of 2001, Sched. 1, Applied:15 Jul 2001] The Minister may form, or participate in the formation of, one or more companies limited by shares that is or are to be incorporated under the Corporations Act, with each such company having as its primary purposes one or more of the following activities:

(a) the transmission of electricity;

(b) the distribution of electricity;

(c) the retailing of electricity;

(d) any other activity, other than the generation of electricity, related to or associated with the transmission, distribution or retailing of electricity.

(2) If the Minister proposes to form, or participate in the formation of, a company under subsection (1) , the Minister must lay before both Houses of Parliament a statement specifying –

(a) the intention to so form or participate in the formation of such a company; and

(b) the primary purposes of the company; and

(c) any other information the Minister considers appropriate.

(3) The Minister may not form, or participate in the formation of, a company under subsection (1) unless the proposal in respect of that company referred to in subsection (2) has been approved by both Houses of Parliament.

(4) A proposal referred to in subsection (2) is approved by a House of Parliament –

(a) when the House passes a motion approving the proposal; or

(b) at the end of 6 sitting days after the draft order was laid before the House if no notice of a motion to disapprove the proposal is before the House; or

(c) if such a notice is before the House at the end of that period, when the first of the following occurs:

(i) the notice is withdrawn;

(ii) the motion is negatived;

(iii) a further period of 6 sitting days ends.

Principal objectives of company

6 Principal objectives of company

The principal objectives of a company on its incorporation are –

(a) to operate its activities in accordance with sound commercial practice; and

(b) to maximise its sustainable return to its shareholders.

Memorandum and articles of company

7 Memorandum and articles of company

(1) The memorandum of association of a company on its incorporation is to include –

(a) the principal objectives of the company; and

(b) any other objectives of the company approved by the Minister; and

(c) a provision to the effect of the provision set out in Part 1 of Schedule 1 .

(2) The articles of a company on its incorporation are to include provisions to the effect of those set out in Part 2 of Schedule 1 .

(2A) [Section 7 Subsection (2A) inserted by No. 18 of 2025, s. 6, Applied:01 Jan 2026] As soon as practicable after the commencement of this subsection, a company is to amend its articles of association to include provisions to the effect of clause 2A, 2B and 2C of Part 2 of Schedule 1 .

(3) Other provisions of the memorandum and articles of association of a company on its incorporation are to be consistent with this Act.

Members of company

8 Members of company

[Section 8 Substituted by No. 18 of 2025, s. 7, Applied:01 Jan 2026]

(1) The members of a company are –

(a) the Minister; and

(b) the Treasurer.

(2) If, at any one time, one person is both the Minister and Treasurer –

(a) the Treasurer must nominate another Minister, being a different person, to be a member of a company; and

(b) a reference in this Act to the Minister is taken to be a reference to the other Minister so nominated; and

(c) a reference in this Act, or any other Act, to the members of a company is taken to include a reference to the other Minister so nominated.

(3) If the Treasurer nominates another Minister as a member of a company, the Treasurer is to notify the company in writing of that fact, as soon as practicable after the Treasurer makes the nomination.

9 Shares

(1) The consideration for shares issued to the members of a company is any operation, property or right vested in the company by section 10(5) .

(2) Shares issued to the members of a company are held in trust for the Crown.

(3) A member of a company who holds shares in trust for the Crown must not acquire shares in the company for his or her own benefit.

(4) Any shares acquired in a company in contravention of subsection (3) are taken to be held in trust for the Crown but the Crown is not liable to meet the cost of that acquisition.

Transfer of business, property, rights and liabilities, &c.

10 Transfer of business, property, rights and liabilities, &c.

(1) In this section –

operation means any operation or activity of the Hydro-Electric Corporation relating to or associated with one or more of the following or any part of such an operation or activity:

(a) the transmission of electricity;

(b) the distribution of electricity;

(c) the retailing of electricity;

transfer day means the day specified in a transfer notice as the day on which the transfer notice takes effect;

transfer recipient means the Crown, or company, to which transferred business is transferred by a transfer notice;

transferred business means any, or any part of any, operation, property, right or liability specified in, and transferred by, a transfer notice;

transferred contract means –

(a) a contract where that contract –

(i) relates to transferred business; and

(ii) was made or entered into by the Hydro-Electric Corporation before the transfer day; and

(b) any part of a contract where –

(i) that part relates to transferred business; and

(ii) that contract was made or entered into by the Hydro-Electric Corporation before the transfer day.

(2) The Treasurer, by notice published in the Gazette, may –

(a) transfer any, or any part of any, operation, property, right or liability of the Hydro-Electric Corporation to the Crown or a company (whether or not that transfer is for a consideration); and

(b) specify the value of any operation, property, right or liability so transferred; and

(c) specify conditions relating to that transfer; and

(d) specify the contracts made or entered into by the Hydro-Electric Corporation before the transfer day, or parts of such contracts, that –

(i) have not been discharged or performed by that day; and

(ii) are or are not related to any operation, property, right or liability so transferred; and

(e) specify the manner in which a contract, or part of a contract, referred to in paragraph (d) applies with respect to the transfer recipient; and

(f) provide for any matter that is incidental to that transfer.

(3) The Treasurer must not make a transfer notice unless he or she has first –

(a) provided the Hydro-Electric Corporation with a draft of that notice; and

(b) allowed the Hydro-Electric Corporation reasonable opportunity to provide the Treasurer with written comments in respect of the draft notice.

(4) Consideration for the transfer under a transfer notice of any transferred business may be by assumption of liabilities, issue of shares or otherwise.

(5) On the transfer day, a transfer notice takes effect and –

(a) any, or any part of any, operation, property and right specified in and transferred by a transfer notice vests in the transfer recipient; and

(b) any, or any part of any, liability specified in and transferred by a transfer notice becomes the liability of the transfer recipient.

(6) Except as otherwise provided in a transfer notice, on and after the transfer day –

(a) any legal proceedings commenced by or against the Hydro-Electric Corporation in respect of transferred business and pending immediately before the transfer day are taken to have been commenced by or against the transfer recipient; and

(b) any legal proceedings that immediately before the transfer day could have been commenced by or against the Hydro-Electric Corporation in respect of the transferred business may be commenced by or against the transfer recipient; and

(c) a judgment or order of a court obtained before the transfer day by or against the Hydro-Electric Corporation in respect of the transferred business may be enforced by or against the transfer recipient; and

(d) a document addressed to the Hydro-Electric Corporation in respect of the transferred business may be served on the transfer recipient; and

(e) a reference to the Hydro-Electric Corporation in a document relating to the transferred business is taken –

(i) to be a reference to the transfer recipient; or

(ii) to include a reference to the transfer recipient –

as the case requires; and

(f) a contract made or entered into before the transfer day by the Hydro-Electric Corporation, or a part of such a contract, which relates to transferred business but is not performed or discharged before that day is taken to be a contract made or entered into by the transfer recipient as it may apply with respect to the transfer recipient under the transfer notice; and

(g) a liability that is transferred business and that, immediately before the transfer day, was guaranteed by the Crown –

(i) continues to be guaranteed by the Crown on the same terms and conditions; and

(ii) is taken to be a guarantee given under section 12 .

(7) A person who is a party to a contract is not entitled to –

(a) terminate that contract; or

(b) claim that there has been a breach or default of the contract; or

(c) claim any remedy –

by reason only of the transfer, under this section, of any operation, property, right or liability to which that contract, or a part of that contract, relates or which arises from that contract or a part of that contract.

(8) Although by the operation of this section the rights and obligations of the Hydro-Electric Corporation under a transferred contract are transferred to a transfer recipient –

(a) on and after the transfer day the rights and obligations of the parties to the transferred contract under or in respect of the transferred contract, and the terms of the transferred contract, are not otherwise affected, altered or diminished; and

(b) the remaining terms of the transferred contract are not otherwise affected, altered or diminished; and

(c) those parties may enforce those rights.

(9) Any tax, duty, fee or charge under any law of Tasmania is not payable in respect of –

(a) a transfer under a transfer notice, the vesting or change of ownership of transferred business in or to the transfer recipient or an act done in connection with that transfer, vesting or change of ownership; or

(b) anything the Treasurer certifies as having been done as a consequence of or in connection with that transfer, vesting or change of ownership.

(10) The Crown must not sell or otherwise dispose of any transferred business which is transferred to it under a transfer notice.

(11) If any dispute arises –

(a) as to whether any, or any part of any, operation, property, right or liability is transferred business; or

(b) as to whether any, or any part of any, contract relates to transferred business –

the Treasurer may determine the matter and must provide the Hydro-Electric Corporation and any transfer recipient or company interested in the matter with written notice of that determination.

(12) A transfer notice is not a statutory rule within the meaning of the Rules Publication Act 1953 .

Status of company

11 Status of company

(1) Unless this or any other Act expressly provides otherwise, a company or a subsidiary of a company –

(a) is not, and does not represent, the Crown; and

(b) is not exempt from any rate, tax, duty or other impost imposed under any law merely because the Crown has beneficial ownership of shares in it; and

(c) is not subject or entitled to any prerogative right or privilege of the Crown.

(2) [Section 11 Subsection (2) substituted by No. 22 of 2023, s. 8, Applied:01 Jul 2023] The Crown is not liable for any liability or obligation of a company or subsidiary of a company unless –

(a) the Treasurer gives a guarantee or indemnity under section 12 in relation to that liability or obligation; or

(b) a guarantee is given under the Tasmanian Public Finance Corporation Act 1985 in respect of the company or subsidiary.

11A

Members' statement of expectations

11A Members' statement of expectations

[Section 11A Inserted by No. 9 of 2018, s. 15, Applied:10 Sep 2018]

(1) The members of a company are to provide the board of directors with a statement of expectations.

(2) The statement of expectations is to specify –

(a) the expectations of the members in relation to the strategic priorities of the company; and

(b) the policy expectations of the members for the performance of the company and its subsidiaries.

(3) The members of a company, at any time, may at their own discretion or on the application of the board of directors –

(a) amend the statement of expectations; or

(b) revoke the statement of expectations and substitute another statement of expectations.

(4) Before or while preparing a statement of expectations or an amendment to a statement of expectations, the members of a company are to consult with the board of directors.

(5) A statement of expectations and an amendment to a statement of expectations are to be in writing and signed by each member.

(6) A statement of expectations, or an amendment to a statement of expectations, takes effect on a day specified in it, being a day not earlier than the day on which the statement or amendment is provided to the company.

(7) The Minister must cause a copy of the statement of expectations, or of an amendment to a statement of expectations, to be laid before each House of Parliament within 10 sitting-days after the statement or amendment has been signed as required by subsection (5) .

11B

Directions by members

11B Directions by members

[Section 11B Inserted by No. 18 of 2025, s. 8, Applied:01 Jan 2026]

(1) The members may give a direction to a company or a wholly-owned subsidiary of a company.

(2) Before the members give a direction under subsection (1) to a company, or a wholly-owned subsidiary, the members are to notify the company or wholly-owned subsidiary in writing that –

(a) the members intend to give the direction on the matter specified in the notification; and

(b) the company or wholly-owned subsidiary has the period specified in the notification to provide information to the members in respect of the specified matter.

(3) A direction given to a company, or a wholly-owned subsidiary, under subsection (1) –

(a) may be given even if the direction is contrary to –

(i) the memorandum and articles of association of the company; or

(ii) a statement of expectations under section 11A in force in respect of the company or subsidiary; or

(iii) the statement of corporate intent under section 11F in force in respect of the company or subsidiary; or

(iv) Treasurer’s Instructions in force in respect of the company or subsidiary; or

(v) if the direction is given to a wholly-owned subsidiary, the constitution of the subsidiary; or

(vi) if the company or wholly-owned subsidiary provided information in respect of the direction in accordance with subsection (2) , that information; and

(b) may not be given if the direction is contrary to the provisions of this Act or another Act of this State or the Commonwealth.

(4) The members may, by written notice to a company or its subsidiary at any time, amend or revoke a direction given to the company or subsidiary under subsection (1) –

(a) at their own discretion; or

(b) on the written request of –

(i) the board of directors of the company; or

(ii) the subsidiary board; or

(c) as a result of an objection made under section 11C in respect of the direction.

(5) As soon as practicable after a direction is given under subsection (1) , or amended or revoked under subsection (4) , the members must ensure that a written copy of the direction so given, or a copy of the written notice given for an amendment or revocation of a direction –

(a) is signed, and dated, by each member of the company; and

(b) is given to the board of directors of the company or the subsidiary board.

(6) A direction given under subsection (1) , or an amendment or revocation of such a direction under subsection (4) , takes effect –

(a) on the day on which a copy of the direction, or a copy of the written notice of the amendment or revocation, is given to the relevant board under subsection (5) ; or

(b) on such later date as is specified in the direction or notice of the amendment or revocation.

(7) A company, or a wholly-owned subsidiary, must comply with each direction given to the company or subsidiary under this section.

(8) It is a defence in proceedings for an offence under any Act, if the defendant establishes that the act, or omission, that is the basis of the offence was a result of complying with a direction, or purported direction, given under this section.

11C

Company may object to direction by members

11C Company may object to direction by members

[Section 11C Inserted by No. 18 of 2025, s. 8, Applied:01 Jan 2026]

(1) Within 21 days after receiving a copy of a direction, or a copy of a written notice of an amendment or revocation of such a direction, under section 11B(5) , a board of directors or a subsidiary board may object to the direction, or its amendment or revocation, on any ground.

(2) An objection under subsection (1) is to –

(a) be made in writing to the members of the company; and

(b) specify the grounds of the objection.

(3) If the members receive an objection under subsection (1) in respect of a direction –

(a) the members, within 10 days after receiving the objection, are to notify the relevant board, in writing, that the members –

(i) intend to amend or revoke the direction in accordance with section 11B ; or

(ii) do not intend to amend or revoke the direction; and

(b) if the members notify the relevant board under paragraph (a)(i) that the direction is to be amended or revoked, the direction is of no effect until it is so amended or revoked; and

(c) if the members notify the relevant board under paragraph (a)(ii) that the direction is not to be amended or revoked –

(i) the Minister must cause a copy of the objection to be tabled in each House of Parliament within 5 sitting-days after the members received the objection; and

(ii) if the Minister fails to table a copy of the objection under this paragraph, the direction is void.

11D

Publication of directions

11D Publication of directions

[Section 11D Inserted by No. 18 of 2025, s. 8, Applied:01 Jan 2026]

(1) If a copy of a direction, or a copy of a written notice of an amendment or revocation of such a direction, is given to a board of directors or a subsidiary board under section 11B(5) , the Minister must table a copy of the direction, or of the written notice, in each House of Parliament within 7 sitting-days after the direction or notice is so given.

(2) Despite subsection (1) , within 5 days after a board receives a copy of a direction or a copy of a written notice under section 11B(5) , the relevant board may make a written request to the members that the direction, or written notice of an amendment or revocation of a direction, should not be tabled under subsection (1) .

(3) A board may only make a request under subsection (2) if the board is of the opinion that the tabling of the direction or written notice may –

(a) disadvantage or cause damage to a company or a subsidiary, whether directly or indirectly; or

(b) enable another person, whether directly or indirectly, to gain an unreasonable advantage; or

(c) constitute a breach of confidentiality; or

(d) prejudice an investigation into –

(i) misconduct or possible misconduct; or

(ii) an offence, or possible offence, against this Act.

(4) If the members are satisfied that a direction, or written notice of an amendment or revocation of a direction, should not be tabled under subsection (1) for a reason specified in subsection (3) –

(a) subsection (1) does not apply in respect of the direction, the amendment or the revocation; and

(b) the Minister must table a statement that the direction has been given, or that written notice of an amendment or revocation has been given, in each House of Parliament within 7 sitting-days after the direction or notice is given to the relevant board under section 11B .

(5) In the report prepared by a board of directors in respect of a company and its subsidiaries for a financial year, the board must publish –

(a) subject to paragraph (b) , a list of –

(i) each direction, given to the board of directors or a subsidiary board under section 11B , that was in effect in respect of the company or a subsidiary during the financial year; and

(ii) each revocation of a direction that was given to the board of directors or a subsidiary board, under section 11B , during the financial year; or

(b) if the Minister has tabled a statement under subsection (4) in respect of a direction, or the amendment or revocation of a direction, given to the board of directors or a subsidiary board under section 11B in respect of the financial year – a copy of the statement.

11E

Duty to notify members of compliance with directions

11E Duty to notify members of compliance with directions

[Section 11E Inserted by No. 18 of 2025, s. 8, Applied:01 Jan 2026] If a board of directors or a subsidiary board is given a direction under section 11B in respect of a company or a subsidiary of a company, the relevant board must notify the members, in writing, of the progress of the company, or subsidiary, in complying with the direction –

(a) at the intervals specified in the direction; and

(b) when, in the opinion of the relevant board, the company or subsidiary has complied with the direction in full.

11F

Statement of corporate intent

11F Statement of corporate intent

[Section 11F Inserted by No. 18 of 2025, s. 8, Applied:01 Jan 2026]

(1) In this section –

relevant financial year, in relation to a statement of corporate intent of a company, means the financial year during which the statement is to be in force in respect of the company.

(2) Before the commencement of each financial year, a board of directors must prepare a statement of corporate intent, in respect of the company and its subsidiaries, that is to be in force for that financial year.

(3) A statement of corporate intent of a company must not disclose any information that the board of directors considers –

(a) may, if disclosed –

(i) disadvantage or cause damage to the company or its subsidiaries, either directly or indirectly; or

(ii) enable another person, either directly or indirectly, to gain an advantage; or

(b) may otherwise be unlawful, or inappropriate, to disclose publicly.

(4) A draft of a statement of corporate intent prepared under this section in respect of a company is to –

(a) relate to the company and its subsidiaries; and

(b) be consistent with each of the following:

(i) the statement of expectations in respect of the company and its subsidiaries that is in force under section 11A ;

(ii) each direction under section 11B that is in effect in respect of the company and its subsidiaries;

(iii) the Treasurer’s Instructions that are in force in respect of the company and its subsidiaries; and

(c) be in a form, and contain the information, specified in the Treasurer's Instructions; and

(d) be provided to the members of the company before –

(i) 31 March in the financial year immediately preceding the relevant financial year; or

(ii) such later day, being a day before the commencement of the relevant financial year, as approved by the members.

(5) After receiving a draft statement of corporate intent under subsection (4)(d) , the members of a company may –

(a) request that the board of directors make changes to the draft statement of corporate intent before it is approved under this section; or

(b) approve the draft statement of corporate intent if satisfied that –

(i) the statement complies with this section; and

(ii) the statement does not disclose information in contravention of subsection (3) .

(6) A statement of corporate intent approved under this section in respect of a company –

(a) takes effect on the day on which it is approved by the members of the company under subsection (5)(b) ; and

(b) while it remains in force, is to be published on a website operated by or on behalf of the company, so that it is freely available to members of the public.

(7) The board of directors of a company may amend or substitute the statement of corporate intent for the company at any time.

(8) An amendment to a statement of corporate intent, or a substitute statement of corporate intent, for a company takes effect –

(a) on the day on which it is approved by the members of the company; or

(b) on such later day as is specified in the amended or substituted statement of corporate intent.

Division 2

Financial and other provisions

Division 2 Financial and other provisions

Guarantee or indemnity

12 Guarantee or indemnity

(1) On the written request of a company or its subsidiary, the Treasurer, in writing, may guarantee or give an indemnity, or guarantee and give an indemnity, in relation to –

(a) [Section 12 Subsection (1) amended by No. 22 of 2023, s. 9, Applied:01 Jul 2023] . . . . . . . .

(b) the performance of an obligation undertaken by the company or subsidiary or which the company or subsidiary has agreed to undertake (whether that obligation is monetary or otherwise).

(2) A guarantee or an indemnity –

(a) [Section 12 Subsection (2) amended by No. 22 of 2023, s. 9, Applied:01 Jul 2023] . . . . . . . .

(b) is subject to any conditions the Treasurer determines.

(3) The Treasurer is to make any payment required under or arising from a guarantee or indemnity out of money provided by Parliament for the purpose.

(4) [Section 12 Subsection (4) amended by No. 22 of 2023, s. 9, Applied:01 Jul 2023] [Section 12 Subsection (4) amended by No. 22 of 2023, s. 9, Applied:01 Jul 2023] This section has effect regardless of where the obligation was undertaken, agreed to be undertaken or required to be performed.

Guarantee fees

13 Guarantee fees

[Section 13 Substituted by No. 1 of 2009, Sched. 1, Applied:27 Apr 2009] Division 1 of Part 11 of the Government Business Enterprises Act 1995 applies in relation to a company and a subsidiary of a company as if –

(a) the company were a Government Business Enterprise specified in Schedule 3 to that Act; and

(b) the subsidiary were a subsidiary within the meaning of that Act.

Tax equivalents

14 Tax equivalents

The provisions of Part 10 of the Government Business Enterprises Act 1995 apply in relation to a company and a subsidiary of that company as if –

(a) the company were a Government Business Enterprise specified in Schedule 2 to that Act; and

(b) the subsidiary were a subsidiary within the meaning of that Act.

15.

[Section 15 Repealed by No. 50 of 2008, Sched. 2, Applied:01 Jul 2010]

16.

[Section 16 Amended by No. 84 of 1999, s. 12, Applied:01 Jul 2000] [Section 16 Repealed by No. 9 of 2018, s. 16, Applied:10 Sep 2018]

Effect of Financial Agreement Act 1994

17 Effect of Financial Agreement Act 1994

If, under section 5(1) of the Financial Agreement Act 1994 , the Treasurer requires a company to do or refrain from doing anything for the purpose of implementing the Agreement, within the meaning of that Act, the company must comply with that requirement.

Superannuation for employees

18 Superannuation for employees

[Section 18 Substituted by No. 19 of 1999, Sched. 1, Applied:15 May 1999]

(1) [Section 18 Subsection (1) substituted by No. 54 of 2016, s. 23, Applied:31 Mar 2017] An employee of a company is an employee for the purposes of the Public Sector Superannuation Reform Act 2016 .

(2) [Section 18 Subsection (2) substituted by No. 54 of 2016, s. 23, Applied:31 Mar 2017] A superannuation contribution made in respect of an employee appointed or employed on or after 15 May 1999 is not to be in excess of the rate specified in section 21(3) of the Public Sector Superannuation Reform Act 2016 .

(3) A company must not establish a superannuation scheme after the commencement day specified in the Public Sector Superannuation Reform Act 1999 .

(4) [Section 18 Subsection (4) amended by No. 54 of 2016, s. 23, Applied:31 Mar 2017] A company must comply with any instruction relating to superannuation given to it by the Minister responsible for the administration of the Public Sector Superannuation Reform Act 2016 .

Division 3

Reports and other documents of company

Division 3 Reports and other documents of company

18A

Company to report on progress

18A Company to report on progress

[Section 18A of Part 2 Inserted by No. 18 of 2025, s. 9, Applied:01 Jan 2026]

(1) Before 28 February in each financial year, the board of directors of a company must –

(a) prepare a report on the performance of the company, and its subsidiaries, for the first 6 months of the financial year; and

(b) give a copy of the report to the members of the company.

(2) A report prepared under subsection (1) is to be in a form, and contain the information, specified in the Treasurer’s Instructions.

(3) Within 7 days after giving a copy of a report to the members under subsection (1) , the board of directors must publish a copy of the report on a website maintained by, or on behalf of, the company so that it is freely available to members of the public.

(4) Despite subsection (3) , the board of directors of a company may omit a part of a report prepared under subsection (1) before publishing the report under subsection (3) if the board is of the opinion that publishing the report, without omitting that part, may –

(a) disadvantage or cause damage to the company or its subsidiaries, whether directly or indirectly; or

(b) enable another person, whether directly or indirectly, to gain an unreasonable advantage; or

(c) constitute a breach of confidentiality; or

(d) prejudice an investigation into –

(i) misconduct or possible misconduct; or

(ii) an offence, or possible offence, against this Act.

(5) If the board of directors does not publish part of a report under subsection (3) , for a reason specified in subsection (4) , the board must include, with the report published in accordance with subsection (3) , a statement that part of the report has been omitted under this section before being so published.

18B

Duty to notify members of adverse circumstances

18B Duty to notify members of adverse circumstances

[Section 18B of Part 2 Inserted by No. 18 of 2025, s. 9, Applied:01 Jan 2026]

(1) In this section –

governing documents, in relation to a company, includes –

(a) the statement of expectations in force in respect of the company and its subsidiaries under section 11A ; and

(b) each direction under section 11B in effect in respect of the company and its subsidiaries; and

(c) the statement of corporate intent in force in respect of the company and its subsidiaries under section 11F ; and

(d) the Treasurer’s Instructions in force in respect of the company and its subsidiaries.

(2) The board of directors of a company must notify the members of the company, in writing, of any development which, in the opinion of the board, may –

(a) prevent or significantly affect the achievement of the objectives, for the company or its subsidiaries, as specified in the governing documents of the company; or

(b) significantly affect the financial viability or operating ability of –

(i) the company and its subsidiaries; or

(ii) any partnership, trust, joint venture or arrangement for the sharing of profits in which the company or its subsidiaries participate; or

(c) prevent the company or its subsidiaries from complying with a direction given to the company, or a subsidiary, under section 11B ; or

(d) significantly affect the ability of the company or its subsidiaries to comply with a direction given to the company, or a subsidiary, under section 11B ; or

(e) otherwise significantly affect the company, or its subsidiaries, in any manner.

(3) A notification under subsection (2) in respect of a development is to be made as soon as possible after the board of directors becomes aware of the development.

18C

Sponsorship framework

18C Sponsorship framework

[Section 18C of Part 2 Inserted by No. 18 of 2025, s. 9, Applied:01 Jan 2026]

(1) As soon as practicable after the commencement of this section, the board of directors is to prepare a framework that specifies the principles and practices that are to be applied in respect of the provision of sponsorship by the company and its subsidiaries.

(2) A framework prepared under subsection (1) –

(a) must be prepared in accordance with, and must reflect, any Treasurer’s Instructions issued in respect of sponsorship; and

(b) must include –

(i) the prescribed provisions; and

(ii) provisions that relate to prescribed matters; and

(c) is to reflect contemporary standards, and best-practice principles, that apply in relation to sponsorship; and

(d) may include such other matters as the board of directors considers relevant.

(3) The board of directors is to ensure that, as far as is reasonably practicable, there is always a framework in force under this section in respect of the company and its subsidiaries.

(4) As soon as practicable after a framework under this section comes into force, the board of directors is to ensure that –

(a) a copy of the framework is published on a website maintained by, or on behalf of, the company; and

(b) as far as is reasonably practicable, the framework remains so published while it is in force.

Part 3

Miscellaneous

Part 3 Miscellaneous

Arrangements with Minister

19 Arrangements with Minister

(1) The Minister, with the approval of the Treasurer and the board of directors of a company, may enter into an agreement under which the company or its subsidiary agrees to perform, or to cease to perform, activities.

(2) The terms of the agreement may provide for compensation or other payment to the company or its subsidiary out of money provided by Parliament for the purpose.

Limitations on members of company

20 Limitations on members of company

(1) A member of a company must not sell or otherwise dispose of the shares held by that member.

(2) A member of a company must not vote at a meeting of the shareholders of the company to allow the company to –

(a) offer shares in the company for subscription; or

(b) invite persons to subscribe for shares in the company; or

(c) allot or issue shares in the company on a basis other than to existing shareholders pro rata to their existing shareholding.

(3) [Section 20 Subsection (3) amended by No. 78 of 2005, s. 32, Applied:01 Jan 2008] [Section 20 Subsection (3) amended by No. 78 of 2005, s. 32, Applied:01 Jan 2008] [Section 20 Subsection (3) amended by No. 115 of 2001, s. 8, Applied:17 Dec 2001] [Section 20 Subsection (3) amended by No. 115 of 2001, s. 8, Applied:17 Dec 2001] [Section 20 Subsection (3) substituted by No. 18 of 2001, s. 5, Applied:26 Apr 2001] A member of a company must not vote at a meeting of the shareholders of the company to allow the company to sell or otherwise dispose of a transmission system situated in Tasmania or a distribution network situated in Tasmania or any part of such a transmission system or distribution network that would have the result of significantly reducing the capacity of the network.

(4) [Section 20 Subsection (4) amended by No. 20 of 2025, s. 5, Applied:27 Nov 2025] [Section 20 Subsection (4) omitted by No. 18 of 2001, s. 5, Applied:26 Apr 2001] [Section 20 Subsection (4) inserted by No. 115 of 2001, s. 8, Applied:17 Dec 2001] An Act that purports to repeal or amend this section is of no effect unless the proposal for the repeal or amendment has been approved by a majority of the electors voting in a referendum held under the Referendum Procedures Act 2004 .

(5) [Section 20 Subsection (5) inserted by No. 115 of 2001, s. 8, Applied:17 Dec 2001] Subsection (4) does not apply to an Act that –

(a) repeals this section if the Act enacts a provision substantially similar to this section; or

(b) amends this section if the amendments enacted do not lessen a majority required by subsection (4) or otherwise substantially alter the effect of this section.

20A

Parliamentary approval required in certain circumstances

20A Parliamentary approval required in certain circumstances

[Section 20A Inserted by No. 20 of 2025, s. 6, Applied:27 Nov 2025] If an Act intends to amend or repeal section 20(1) , a motion that approves that amendment or repeal must be passed by at least two-thirds of the members of each House of Parliament before a referendum is held in accordance with section 20(4) in respect of the amendment or repeal.

Delegation by Minister and Treasurer

21 Delegation by Minister and Treasurer

(1) The Minister, in writing, may delegate to any person any of his or her powers or functions under this Act, other than this power of delegation.

(2) The Treasurer, in writing, may delegate to any person any of his or her powers or functions under this Act, other than this power of delegation.

21A

Treasurer's Instructions

21A Treasurer's Instructions

[Section 21A Inserted by No. 9 of 2018, s. 17, Applied:10 Sep 2018]

(1) In this section –

Treasurer's Instruction means a Treasurer's Instruction issued under section 114 of the Government Business Enterprises Act 1995 .

(2) A Treasurer's Instruction applies to a company, and each subsidiary of that company, as if they were Government Business Enterprises specified in Schedules 1 , 2 and 3 of the Government Business Enterprises Act 1995 .

(3) The Treasurer may issue Treasurer's Instructions specifically in relation to a company, and a subsidiary of a company, as if they were Government Business Enterprises specified in Schedules 1 , 2 and 3 of the Government Business Enterprises Act 1995 .

(4) A company and a subsidiary of a company are to comply with all relevant Treasurer's Instructions.

(5) The Treasurer may exempt a company or a subsidiary of a company, or both, from the obligation to comply with all or part of a Treasurer's Instruction.

21B

Application of Corporations Act

21B Application of Corporations Act

[Section 21B Inserted by No. 9 of 2018, s. 17, Applied:10 Sep 2018] To the extent that a provision of this Act is incapable of concurrent operation with the Corporations Act, that provision is declared to be a Corporations legislation displacement provision for the purposes of section 5G of the Corporations Act.

Application of certain provisions of other Acts

22 Application of certain provisions of other Acts

Part I of Schedule 3 to the Stamp Duties Act 1931 and section 10 of the Land and Income Taxation Act 1910 apply to a company and any subsidiary of a company as if the company or subsidiary were a Government Business Enterprise.

Evidentiary matters

23 Evidentiary matters

(1) The publication of a notice in the Gazette purporting to be a transfer notice is evidence that it is a transfer notice validly made and published in the Gazette.

(2) A determination purporting to be a determination under section 10(10) is evidence of the matters in it.

Regulations

24 Regulations

(1) The Governor may make regulations for the purposes of this Act.

(2) Without limiting the generality of subsection (1) , the Governor may make regulations that –

(a) contain provisions of a savings or transitional nature consequent on the enactment of this Act or the making of a transfer notice; and

(b) provide for all matters necessary for or incidental to the making of a transfer notice; and

(c) provide for all matters relating to the resolution of disputes arising from the making or interpretation of a transfer notice or any related matter; and

(d) specify whether an operation or activity, operations or activities of a class specified in the regulations or a part of an operation or activity is or are related to the transmission, distribution or retailing of electricity; and

(e) provide for the payment of fees under the regulations; and

(f) provide for the correction of registers under the Land Titles Act 1980 , for the issue of certificates of title under that Act and for related matters.

(3) A provision referred to in subsection (2)(a) may take effect on and from the day on which this Act receives the Royal Assent or a later day.

(4) The regulations may –

(a) provide that a contravention of, or a failure to comply with, any of the regulations is an offence; and

(b) in respect of such an offence, provide for the imposition of a fine not exceeding 10 penalty units and, in the case of a continuing offence, a further fine not exceeding 5 penalty units for each day during which the offence continues.

(5) The regulations may authorise any matter to be from time to time determined, applied or regulated by the Minister or the Treasurer, or both.

Transitional provisions

25 Transitional provisions

Schedule 2 has effect with respect to matters of a transitional or savings nature.

Consequential repeals and amendments

26 Consequential repeals and amendments

(1) The HEC Enterprises Corporation Act 1995 is repealed.

(2) The Government Business Enterprises Act 1995 is amended by omitting "HEC Enterprises Corporation" from Part 1 of Schedule 1 and from Schedules 2, 3 and 4.

(3) The legislation specified in Schedule 3 is amended as specified in that Schedule.

Administration of Act

27 Administration of Act

Until provision is made in relation to this Act by order under section 4 of the Administrative Arrangements Act 1990 –

(a) the administration of this Act is assigned to the Minister for Energy; and

(b) the Department responsible to the Minister for Energy in relation to the administration of this Act is the Department of Treasury and Finance.

SCHEDULE 1 - Provisions to be

SCHEDULE 1 - Provisions to be included in memorandum and articles

SCHEDULE 1 - Provisions to be SCHEDULE 1 - Provisions to be included in memorandum and articles

Section 7

SCHEDULE 2 - Transitional prov

SCHEDULE 2 - Transitional provisions

SCHEDULE 2 - Transitional prov SCHEDULE 2 - Transitional provisions

Section 25

1. Interpretation

In this Schedule, unless the contrary intention appears –

amend includes –

(a) omit matter; and

(b) insert or add matter; and

(c) omit matter and substitute other matter;

Enterprises Corporation means the HEC Enterprises Corporation;

former Act means the HEC Enterprises Corporation Act 1995 ;

maximum prices has the same meaning as in the Government Prices Oversight Act 1995 ;

transferred business has the same meaning as in section 10 ;

transferred employee means a person who becomes an employee of an electricity company by reason of clause 3 .

2. Directors of Hydro-Electric Corporation

(1) The appointment of a person as a director of the Hydro-Electric Corporation is revoked on that person's appointment as a director of a company.

(2) A person is not entitled to any compensation or other payment in respect of the revocation of an appointment under subclause (1) despite anything to the contrary in the instrument of the appointment.

3. Transfer of staff

(1) After consulting with the chief executive officer of the Hydro-Electric Corporation and such persons employed by that Corporation as may be affected by the formation of a company, the Director of Public Sector Management may, by notice served on such a person, transfer the employment of that person to that company on and from the day specified in the notice.

(2) Without limiting the ways in which consultation with persons may be undertaken for the purposes of subclause (1) , consultation may be undertaken by consulting the representatives of persons.

(3) On the day specified in the notice as the day on which the employment of a person is transferred –

(a) that person, if he or she has been served with that notice, becomes an employee of the company specified in the notice; and

(b) that company becomes the employer of that person; and

(c) the employment of that person with the Hydro-Electric Corporation is terminated.

(4) A transferred employee –

(a) is taken to have been employed by the company for the same remuneration as he or she was receiving immediately before the transfer; and

(b) except where an award, agreement or any other law otherwise provides, retains all existing and accrued rights as if employment as an employee of the company were a continuation of employment with the Hydro-Electric Corporation; and

(c) is entitled to claim those rights against the company; and

(d) is not entitled to any compensation in respect of the change of employer.

(5) Any award or agreement relating to a transferred employee continues to apply to the transferred employee, except where another award or agreement or any other law otherwise provides, and for that purpose a reference in the award or agreement to the Hydro-Electric Corporation is taken to be or to include a reference to the company.

(6) The period of service of the transferred employee with the Hydro-Electric Corporation is taken to be service as an employee of the company.

(7) Nothing in this clause prevents any of the terms of employment of a transferred employee being altered by an award, agreement or law after he or she becomes the employee of the company.

(8) If the Long Service Leave (State Employees) Act 1994 applied to a transferred employee immediately before the incorporation day, that Act continues to apply to the transferred employee unless –

(a) he or she gives written notice to the company that he or she elects that that Act not apply; or

(b) an award or agreement provides otherwise.

4. Licensing of company

The company is taken to hold a licence necessary under the Electricity Supply Industry Act 1995 for the company to operate any or any part of its transferred business until the first of the following occurs:

(a) the period of 6 months commencing on the incorporation day ends;

(b) the company is issued under that Act with a licence relating to the operation of that transferred business or part of transferred business.

5. Pricing policies

(1) The Minister may make one or more orders specifying the maximum prices that may be charged by the Hydro-Electric Corporation or a company in respect of, or in connection with, the supply of electricity.

(2) The maximum prices specified in an order under subclause (1) must not exceed the maximum prices specified in the Government Prices Oversight (Electricity Prices) Order 1996.

(3) An order under subclause (1) –

(a) may commence on the day the making of the order is notified in the Gazette or a later day, as specified in the order; and

(b) may amend or revoke the Government Prices Oversight (Electricity Prices) Order 1996; and

(c) expires on 31 December 1999; and

(d) is taken to be an order under section 36(2) of the Government Prices Oversight Act 1995 .

(4) Section 36(3)(c), (4) and (4A) of the Government Prices Oversight Act 1995 does not apply in respect of an order under subclause (1) .

6. Directors of Enterprises Corporation

(1) On the repeal of the former Act –

(a) the board of directors of the Enterprises Corporation is dissolved; and

(b) the appointments of the directors and acting directors of the Enterprises Corporation are revoked.

(2) A person is not entitled to any compensation or other payment in respect of the revocation of an appointment under subclause (1)(b) despite anything to the contrary in the terms of the appointment.

7. Property, documents and legal proceedings of or relating to Enterprises Corporation

(1) On the repeal of the former Act –

(a) any property vested in or belonging to the Enterprises Corporation immediately before that repeal vests in or belongs to the Hydro-Electric Corporation; and

(b) any liabilities of the Enterprises Corporation immediately before that repeal become the liabilities of the Hydro-Electric Corporation.

(2) On and after the repeal of the former Act –

(a) any legal proceedings commenced by or against the Enterprises Corporation and pending immediately before that repeal are taken to have been commenced by or against the Hydro-Electric Corporation; and

(b) any legal proceedings that may have been commenced by or against the Enterprises Corporation immediately before that repeal may be commenced by or against the Hydro-Electric Corporation; and

(c) a judgment or order of a court obtained before that repeal by or against the Enterprises Corporation may be enforced by or against the Hydro-Electric Corporation; and

(d) a document addressed to the Enterprises Corporation may be served on the Hydro-Electric Corporation; and

(e) a reference to the Enterprises Corporation in a document having effect immediately before that repeal is taken –

(i) to be a reference to the Hydro-Electric Corporation; or

(ii) to include a reference to the Enterprises Corporation –

as the case requires; and

(f) a contract made or entered into before that repeal by the Enterprises Corporation but not performed or discharged before that repeal is taken to have been made or entered into by the Hydro-Electric Corporation.

(3) A person who is a party to a contract is not entitled to –

(a) terminate that contract; or

(b) claim that there has been a breach or default of the contract; or

(c) claim any remedy –

by reason only of the transfer by this clause of property or liabilities to which that contract relates, or arising from that contract, from the Enterprises Corporation to the Hydro-Electric Corporation.

(4) Any tax, duty, fee or charge under any law of Tasmania is not payable in respect of –

(a) the transfer by this clause of any property or liability from the Enterprises Corporation to the Hydro-Electric Corporation; or

(b) anything the Treasurer certifies as having been done as a consequence of that transfer.

(5) The Hydro-Electric Corporation must repay to the Crown by 30 June 1999 the allocation of $250 000 made by the Crown to the Enterprises Corporation.

(6) If the whole or any part of the sum referred to in subclause (5) remains unpaid after 30 June 1999, that amount may be recovered as a debt due to the Crown in a court of competent jurisdiction.

SCHEDULE 3 - Consequential Ame

SCHEDULE 3 - Consequential Amendments

SCHEDULE 3 - Consequential Ame SCHEDULE 3 - Consequential Amendments

Section 26

Fire Service Act 1979

1. Section 60 is amended as follows:

(a) by inserting "(1)" before "Notwithstanding";

(b) by omitting "Hydro-Electric Corporation" and substituting "appropriate electricity entity";

(c) by omitting "Corporation", last 4 times occurring, and substituting "electricity entity";

(d) by inserting the following subsection:

(2) In this section,

electricity entity means an electricity entity within the meaning of the Electricity Supply Industry Act 1995 which is also a prescribed electricity entity within the meaning of the Electricity Entities (Contributions) Act 1997 .

Government Business Enterprises Act 1995

1. Section 9(1)(h) is amended as follows:

(a) by inserting "either" after "powers";

(b) by inserting "or by that other person" after "other person".

Long Service Leave (State Employees) Act 1994

1. Schedule 1 is amended by omitting the item relating to employees formerly employed under the Hydro-Electric Corporation Act 1944.

Trustee Act 1898

1. Section 5(1)(a) is amended by omitting "Commonwealth, or the Hydro-Electric Corporation" and substituting "Commonwealth".

Source text: opening excerpt

Sourced from Tasmanian Legislation Online (legislation.tas.gov.au), CC BY 4.0.

Part 1 Preliminary

1 Short title

This Act may be cited as the Electricity Companies Act 1997 .

2 Commencement

(1) Sections 1 , 24 , 25 , 26(3) and 27 , this section and Schedules 2 and 3 commence on the day on which this Act receives the Royal Assent.

(2) Except as provided in subsection (1), the remaining provisions of this Act commence on a day or days to be proclaimed.

3 Interpretation

In this Act –

[Section 3 Amended by No. 18 of 2025, s. 5, Applied:01 Jan 2026] board of directors, in relation to a company, means the board of directors for the company;

company means a company formed under section 5 ;

[Section 3 Amended by No. 18 of 2001, s. 4, Applied:26 Apr 2001]

[Section 3 Amended by No. 18 of 2001, s. 4, Applied:26 Apr 2001] [Section 3 Amended by No. 78 of 2005, s. 31, Applied:01 Jan 2008] dispose of, in relation to a transmission system, distribution network or part of a transmission system or distribution network, includes –

(a) [Section 3 Amended by No. 78 of 2005, s. 31, Applied:01 Jan 2008] the giving by a company of a right by lease, licence or any other means which would be inconsistent with the company continuing to use, possess or occupy that transmission system or distribution network or that part of a transmission system or distribution network for the primary purpose for which the company was formed under section 5 ; and

(b) [Section 3 Amended by No. 78 of 2005, s. 31, Applied:01 Jan 2008] the disposal of that transmission system or distribution network or that part of a transmission system or distribution network by the company to its subsidiary;

Constitutional and incorporation steps: Before forming or participating in forming a company, the Minister must lay a statement before both Houses of Parliament specifying the intention and primary purposes and obtain parliamentary approval (s 5(2)-(3)). The memorandum must include the principal objectives and the prescribed provision in Schedule 1 Part 1 (s 7(1)); the articles must include provisions equivalent to those in Schedule 1 Part 2 (s 7(2)). After the 2025 amendments, companies must amend their articles as soon as practicable to include clauses 2A-2C of Schedule 1 Part 2 (s 7(2A)). Ensure incorporation documents mirror these requirements precisely.

Board and director compliance: Boards must manage the company consistent with the Corporations Act and the articles (Schedule 1, Part 2, cl 2). Directors should be appointed consistent with Schedule 1, Part 2, cl 2A: persons who have served two full terms or have been CEO are restricted from appointment unless exceptional circumstances are found and parliamentary tabling follows (clls 2A-2C). For each director appointment, confirm whether exceptions apply and ensure parliamentary notifications (Schedule 1 clls 2B-2C).

Members’ statements and directions: Members must prepare and sign a statement of expectations and consult with the board before or while preparing it (s 11A(1), (4)-(5)). When members propose directions, they must notify the company in writing before giving the direction and provide a period for the company to provide information (s 11B(2)). Companies should document their responses to the members’ notification as these form part of the compliance record. If a direction is received, the board may object in writing within 21 days (s 11C(1)-(2)); follow the prescribed objection form, specify grounds and track timing rigorously.

Statements of corporate intent and reporting: Boards must prepare a statement of corporate intent before each financial year, consistent with the statement of expectations, any directions in effect, and Treasurer’s Instructions (s 11F(2), (4)(b)). Drafts must be provided to members by 31 March preceding the relevant year (s 11F(4)(d)), unless members approve a later day. Published statements must not disclose information that the board considers would disadvantage the company or others (s 11F(3)). Boards must also prepare and publish six‑monthly reports by 28 February for the first six months of the financial year and publish them within seven days of giving them to members; if parts are omitted for confidentiality or investigatory reasons, publish a statement indicating omission (s 18A(1)-(5)). Ensure Treasurer’s Instructions specify form and content (s 18A(2)).

Treasurer’s Instructions and financial obligations: Companies must comply with Treasurer’s Instructions as if GBEs (s 21A(2)-(4)). Identify all relevant Treasurer’s Instructions early, map requirements to corporate processes (financial reporting, procurement, sponsorship policies), and seek any applicable exemptions from the Treasurer before non‑compliance becomes necessary (s 21A(5)).

Sponsorship, procurement and conflict policies: The board must prepare a sponsorship framework reflecting Treasurer’s Instructions and contemporary best practice, include prescribed provisions and publish it on the company website (s 18C(1)-(4)). Use the Treasurer’s Instructions as the baseline for procurement and sponsorship policies and document risk assessments for disclosures that might be omitted from public documents (s 18C(2)(a)-(b); s 11F(3)).

Transfer notice procedures and contract management: If a transfer is contemplated, the Treasurer must provide a draft transfer notice to the Hydro‑Electric Corporation and allow reasonable opportunity to comment (s 10(3)). Companies and legal teams should review draft transfer notices for specification of assets, valuation, conditions, list of contracts or parts of contracts being transferred, and the manner in which contracts apply to the transfer recipient (s 10(2)(b), (d), (e)). Track the transfer day and implement vesting steps (s 10(5)-(6)), ensure continuity of court proceedings and enforcement actions, and note exemptions from state tax/duty for the transfer if certified by the Treasurer (s 10(9)). For contracts that are to be treated as transferred, prepare novation or assignment records consistent with the transfer notice and ensure counterparties’ rights are documented.

Employee transfer and labour relations: When employees transfer, the Director of Public Sector Management may transfer employment by notice after consultation (Schedule 2, cl 3(1)-(2)). Employers must meet the conditions: maintain existing remuneration and accrued rights (Schedule 2, cl 3(4)), respect award and agreement continuity (Schedule 2, cl 3(5)), and record continuous service (Schedule 2, cl 3(6)). Give transferred employees clear written notices specifying effective dates and record any elections regarding long service leave continuity (Schedule 2, cl 3(8)). Ensure payroll, superannuation and entitlements align with public sector superannuation obligations (s 18; references to the Public Sector Superannuation Reform Act 2016).

Guarantees and public funding: If the company requests a Treasurer’s guarantee or indemnity (s 12(1)), prepare a formal written request and be ready to accept conditions (s 12(2)). Recognise that payments under a guarantee will be appropriated from Parliamentary funds (s 12(3)), and that guarantees may attract guarantee fees and tax equivalents under the GBE framework (ss 13-14). Financial modelling should include potential guarantee fees and tax‑equivalents liabilities.

Constitutional restrictions on borrowing and subsidiaries: The company’s articles must contain a provision substantially the same as Schedule 1 Part 2, cl 3, which prohibits borrowing from other persons unless approved by special resolution; effectively borrowings require shareholder approval and are limited to the Tasmanian Public Finance Corporation unless a special resolution authorises otherwise (Schedule 1 cl 3). The company must not form, acquire, or dispose of subsidiaries, or change their ownership status, without special resolution (Schedule 1 cl 4). For any planned subsidiary or major transaction, obtain shareholder approval early and document special resolutions for parliamentary approval steps where required.

Parliamentary and public transparency obligations: Table the statement of expectations and any amendments in Parliament within prescribed timeframes (s 11A(7)). When members give directions or boards receive objections, follow the tabling requirements and timelines (ss 11B(5), 11D(1)-(4), 11C(3)). Publish required documents on the company website (s 11F(6)(b); s 18A(3); s 18C(4)(a)).

Regulation monitoring and offence exposure: Monitor the regulations made under s 24 as they may create new offences and fines; ensure compliance programmes reflect any regulatory changes, especially those relating to transfer notices and dispute resolution. Where uncertainty exists, consider seeking Treasurer clarifications or exemptions where available (s 21A(5)).

Record‑keeping and evidence: Keep comprehensive written records of communications with the Treasurer, Minister, and Hydro‑Electric Corporation in relation to transfer notices and directions (s 10(3); s 11B(2)). Preserve copies of Gazette notices, Treasurer determinations and parliamentary tabling documents because the Act treats those as evidence (ss 10(2); 23).

Legal and governance cross‑checks: Because the Act interacts with the Corporations Act (s 21B) and incorporates GBE financial rules (ss 13-14), coordinate compliance with corporate governance counsel and finance teams to ensure parallel compliance with corporate law obligations and the Treasurer’s Instructions.

In sum, compliance requires simultaneous attention to statutory procedures (drafting and consultation rules), corporate constitutional form (memorandum and articles per Schedule 1), financial governance under Treasurer’s Instructions and GBE rules, careful management of employee transfers and contracts during transfers (s 10 and Schedule 2), and disciplined publication, parliamentary tabling and record‑keeping.