40Minister may revoke declaration of a body as a recipient body

40 Minister may revoke declaration of a body as a recipient body

(1) The Minister may, by writing, revoke a declaration under subsection 39(1) in relation to a body if: (a) the body requests the Minister in writing to revoke the declaration; or (b) the Minister reasonably believes that the body has contravened this Act or the funding agreement with the body; or (c) a funding agreement with the body has ceased to be in force and the Minister is satisfied that no further funding agreement will be entered into with the body; or (d) the Minister reasonably believes that: (i) the body’s constitution is no longer appropriate for a body performing the functions of a recipient body; or (ii) the body has failed to comply with its constitution; or (e) an administrator of the body is appointed; or (f) the body starts to be wound up or ceases to carry on business; or (g) a receiver, or a receiver and manager, of property of the body is appointed (by a court or otherwise); or (h) the body enters into a compromise or arrangement with some or all of its creditors.

Note 1: For paragraph (b): an example of a contravention of this Act is a failure to comply with a direction under section 41.

Note 2: For review of a revocation decision, see section 85.

When revocation takes effect (2) A revocation of a declaration takes effect on the day specified in the revocation, which must not be earlier than the day the revocation is made. Copy of revocation to be given to body (3) The Minister must give a body covered by a revocation under subsection (1) a copy of the revocation. Publication (4) The Minister must cause a copy of a revocation under subsection (1) to be published on the Department’s website. Tabling in Parliament (5) The Minister must cause a copy of a revocation under subsection (1) to be tabled in each House of the Parliament within 5 sitting days of that House after the day on which the revocation is made. Repayment of funds (6) If the Minister revokes a declaration under subsection 39(1) in relation to a body, the Minister may, in writing, direct the body: (a) to pay to the Commonwealth any amounts paid to the body under this Act that are held by the body at the time the revocation takes effect; and (b) to make the payment within the period specified in the direction (which must be at least 28 days after the direction is given). (7) Subsection (6) does not apply to amounts required to meet the body’s liabilities incurred, in connection with this Act or a funding agreement, before the time the revocation takes effect. (8) The body must comply with the direction. (9) If an amount payable by a body because of a direction under subsection (6) remains unpaid at the end of the period specified in the direction, the amount: (a) is a debt due to the Commonwealth; and (b) may be recovered by the Minister, on behalf of the Commonwealth, by action in a court of competent jurisdiction. Instruments are not legislative instruments (10) Neither of the following is a legislative instrument: (a) a revocation under subsection (1); (b) a direction under subsection (6).