Part 3Performance and scope of corporation's operations

Part 3—Performance and scope of corporation's operations 11—General performance principles (1) A public corporation must perform its commercial operations in accordance with prudent commercial principles and use its best endeavours to achieve a level of profit consistent with its functions. (2) A public corporation must perform its non-commercial operations (if any) in an efficient and effective manner consistent with the requirements of its charter. (3) Where a public corporation's charter identifies any operations of the corporation as non-commercial operations, the operations are to be regarded as such for the purposes of this section. 12—Corporation's charter (1) A charter must be prepared for a public corporation by its Minister and the Treasurer after consultation with the corporation. (2) The charter must deal with the following matters: (a) the nature and scope of the commercial operations to be undertaken, including— (i) the nature and scope of any investment activities; (ii) the nature and scope of any operations or transactions outside the State; (iii) the nature and scope of any operations or transactions that may be undertaken by subsidiaries of the corporation, by other companies or entities associated with the corporation or pursuant to a trust scheme or a partnership or other scheme or arrangement for sharing of profits, co-operation or joint venture with another person; and (b) the nature and scope of any non-commercial operations to be undertaken and the arrangements for their costing and funding; and (c) all requirements of the corporation's Minister or the Treasurer as to— (i) the corporation's obligations to report on its operations; (ii) the form and contents of the corporation's accounts and financial statements; (iii) any accounting, internal auditing or financial systems or practices to be established or observed by the corporation; (iv) the setting of fees or charges, the acquisition or disposal of capital or assets or the borrowing or lending of money. (3) The charter may— (a) limit the functions or powers of the corporation; and (b) deal with any other matter not specifically referred to in subsection (2). (4) The charter may not extend the functions or powers of the corporation as provided by the corporation's incorporating Act and any other Act. (5) The corporation's Minister and the Treasurer must, after consultation with the corporation, review the charter at the end of each financial year. (6) The corporation's Minister and the Treasurer may, after consultation with the corporation, amend the charter at any time. (7) The charter or any amendment to the charter comes into force and is binding on the corporation on a day specified in the charter or amendment (but without affecting any contractual obligations previously incurred by the corporation). (8) On the charter or an amendment to the charter coming into force, the corporation's Minister must— (a) within six sitting days, cause a copy of the charter, or the charter in its amended form, to be laid before both Houses of Parliament; and (b) within 14 days (unless such a copy is sooner laid before both Houses of Parliament under paragraph (a)), cause a copy of the charter, or the charter in its amended form, to be presented to the Economic and Finance Committee of the Parliament. 13—Performance statements (1) The corporation's Minister and the Treasurer must, when preparing the charter for a public corporation, also prepare, after consultation with the corporation, a performance statement setting the various performance targets that the corporation is to pursue in the coming financial year or other period specified in the statement and dealing with such other matters as the Minister and the Treasurer consider appropriate. (2) The corporation's Minister and the Treasurer must, after consultation with the corporation, review the performance statement when reviewing the corporation's charter. (3) The corporation's Minister and the Treasurer may, after consultation with the corporation, amend the performance statement at any time.