Revised Explanatory Memorandum
(Circulated by authority of the Minister for Finance, Senator the Hon Mathias Cormann)Chapter 3 - Commonwealth companies
Part 3-1 - Companies, subsidiaries and new corporate Commonwealth entities
Division 2 - Core provisions for this Chapter
Section 89: Commonwealth companies
114. Item 62 would amend subsection 89(2) to ensure that the word "controls" appears in bold, to indicate that the word has a specific meaning (as described in subsection 89(2) of the PGPA Act).
Part 3-2 - Planning and accountability
Division 2 - Planning and budgeting
Section 95: Corporate plan for Commonwealth companies
115. Item 63 would amend paragraph 95(1)(a) to clarify that the section applies to Commonwealth companies (the PGPA Act currently includes a printing error, referring to companies as entities) and that a corporate plan must be prepared at least once each reporting period.
116. Item 64 would add a new subsection to ensure that if the Directors vary any corporate plan then the Directors must comply with any requirements prescribed in the PGPA rules in relation to the variation of corporate plans. This is consistent with the proposed requirements under section 35 of the PGPA Act in relation to Commonwealth entities ( Item 31 refers).