45Compliance with Future Drought Fund Investment Mandate

45 Compliance with Future Drought Fund Investment Mandate

(1) The Future Fund Board must take all reasonable steps to comply with the Future Drought Fund Investment Mandate. (2) If the Future Fund Board becomes aware that it has failed to comply with the Future Drought Fund Investment Mandate, the Board must give the responsible Ministers a written statement, as soon as practicable after becoming so aware: (a) informing the responsible Ministers of the failure to comply with the Investment Mandate; and (b) setting out the action that the Board proposes to take in order to comply with the Investment Mandate. (3) If the responsible Ministers are satisfied that the Future Fund Board has failed to comply with the Future Drought Fund Investment Mandate, the responsible Ministers may, by written notice given to the Board, direct the Board: (a) to give the responsible Ministers, within a period specified in the notice, a written explanation for the failure to comply with the Investment Mandate; and (b) to take action specified in the notice, within a period specified in the notice, in order to comply with the Investment Mandate. (4) The Future Fund Board must comply with a direction under subsection (3). (5) A failure to comply with: (a) the Future Drought Fund Investment Mandate; or (b) a direction under subsection (3); does not affect the validity of any transaction. (6) A direction under subsection (3) is not a legislative instrument.