7.12 Approval requirements

In the case of Government Boards constituted by statute, there is usually a number of activities cited, either in the enabling legislation or in other legislation, which require the Board to obtain prior "external" approval. For example, in the case of certain investment activities, borrowings, leases and other financial arrangements, the Statutory Bodies Financial Arrangements Act 1982 (PDF) (SBFA Act) may require the prior approval of the Treasurer. Depending on the subject matter, the approval may be required from either the relevant portfolio Minister, or in some cases, such as contract expenditure over certain amounts, from the Governor in Council.

An activity engaged in without the necessary approval may be unlawful and there may be repercussions for Board members, eg. some enabling legislation provides that Board members can be held personally liable for illegal financial arrangements. Retrospective approvals cannot be given for investments or other financial arrangements that require the prior approval of the Treasurer under the SBFA Act.

Borrowings (and transactions of an equivalent effect, eg. certain leases) generally also require a separate approval under the State Borrowing Program and Boards should liaise with their administering departments on this issue.

Last reviewed: 17 July, 2009

Last updated: 22 July, 2009

^ to top