Amendments to the Government Owned Corporations Act 1993
Amendments have been made to the Government Owned Corporations Act 1993 to modernise and enhance the governance framework. The changes make it simpler for government owned corporations (GOCs) to run their businesses, while maintaining a strong corporate governance framework in line with the public’s expectations for accountability.
The introduction of the Corporations Act 2001 and subsequent modifications changed company law substantially since the GOC Act was developed, based on the existing Commonwealth administered company law. Amendments to the GOC Act updated it for current company law requirements and made all GOCs subject to regulation and oversight by the Australian Securities and Investments Commission. To effect this reform, all statutory GOCs have been converted to company GOCs. The Office of Government Owned Corporations worked with GOCs to facilitate the conversion process.
While there are some changes as a result of conversion to company GOCs, the proposed changes do not affect existing rights or employment conditions for those employed by GOCs.
Amendments were recently made to the GOC Act to devolve to GOC boards the responsibility for senior executive appointments. GOC and GOC subsidiary boards can appoint senior executives in the GOC or subsidiary respectively, without prior written shareholding Ministers' approval. Chief executive officer appointments continue to be subject to shareholding Ministers' approval.
Last reviewed 12 March 2009
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