Forestry Act 2012 No 96
Part 2 Forestry Corporation
Division 1 Constitution and management of Forestry Corporation
5 Establishment of Forestry Corporation
There is constituted by this Act a corporation with the corporate name of the Forestry Corporation of New South Wales.Note.Schedule 4 to this Act amends the SOC Act to make the Forestry Corporation a statutory State owned corporation.The SOC Act contains a number of provisions that will apply to the Corporation as a statutory SOC. In particular—(a) Part 3 contains provisions relating to the status of the Corporation, the application of the Corporations Act 2001 of the Commonwealth, the issue of shares to the Treasurer and another Minister, the board of directors, the chief executive officer, the employment of staff, the giving of directions by the portfolio Minister (including directions for the performance of non-commercial activities or the carrying out of public sector policies), the constitution of the Corporation, dividends and tax-equivalent payments, government guarantees, the sale or disposal of assets and the legal capacity and general powers of the Corporation, and(b) Part 4 deals with the accountability of the Corporation (including statements of corporate intent, annual reports and accounts), and(c) Part 5 deals with miscellaneous matters (including the duties and liabilities of directors and the application of public sector legislation).
6 Board of directors
(1) The Corporation is to have a board of directors.(2) The board is to consist of no fewer than 3 and not more than 7 directors appointed by the voting shareholders.(3) One of the directors is, in and by the director’s instrument of appointment or in and by another instrument executed by the voting shareholders, to be appointed as chairperson of the board.(4) The chief executive officer may be appointed as a director.(5) The board is accountable to the voting shareholders in the manner set out in Part 4 of the SOC Act and in the constitution of the Corporation.(6) The voting shareholders may remove a director, or the chairperson, from office at any time for any or no reason and without notice (but only at a duly convened meeting of the voting shareholders) and, in that event, the office of the director or chairperson is taken to have become vacant for the purposes of Schedule 8 to the SOC Act.(7) Subject to subsections (8) and (9), Schedule 8 to the SOC Act has effect with respect to the constitution and procedure of the board.(8) The provisions of section 20J of the SOC Act, and of clauses 2(1) and (2) and 7(1)(d) and (2) of Schedule 8 to the SOC Act, do not apply to the Corporation or to the chairperson.(9) The provisions of clause 6 of Schedule 8 to the SOC Act do not apply to the chief executive officer if appointed as a director, and the chief executive officer is not entitled to remuneration under that clause in his or her capacity as a director.
7 Chief executive officer
(1) The chief executive officer of the Corporation is to be appointed by the board but only with the approval of the voting shareholders.(2) Subject to this section, the chief executive officer holds office for such term not exceeding 5 years as may be specified in the instrument of appointment, but is eligible (if otherwise qualified) for re-appointment.(3) The voting shareholders may remove a person from office as chief executive officer, at any time, for any or no reason and without notice.(4) The chief executive officer is entitled to be paid such remuneration (including travelling and subsistence allowances) as the board may determine with the approval of the voting shareholders.(5) The board may, with the approval of the voting shareholders, fix the conditions of employment of the chief executive officer in so far as they are not fixed by or under any other Act or law.(6) The board may require the chief executive officer to enter into performance agreements.(7) The chief executive officer may delegate any functions of the chief executive officer to an employee of the Corporation, but this power is subject to any directions of the board.(8) The Government Sector Employment Act 2013 (Part 6 included) does not apply to the chief executive officer.(9) The provisions of section 20K of the SOC Act, and of Schedule 9 to that Act, do not apply to the chief executive officer.
8 Acting chief executive officer
(1) The board may, from time to time, appoint a person to act in the office of chief executive officer during the illness or absence of the chief executive officer.(2) The board may remove a person from office as acting chief executive officer, at any time, for any or no reason and without notice.(3) A person, while acting in the office of chief executive officer—(a) has all the functions of the chief executive officer and is taken to be the chief executive officer, and(b) is entitled to be paid such remuneration (including travelling and subsistence allowances) as the board may determine with the approval of the voting shareholders.(4) For the purposes of this section, a vacancy in the office of a chief executive officer is regarded as an absence from office.(5) Clause 5 of Schedule 9 to the SOC Act does not apply to an acting chief executive officer of the Corporation.
9 Application of SOC Act
The provisions of this Part are in addition to and do not (except to the extent to which this Part provides) derogate from the provisions of the SOC Act.
Division 2 Objectives and functions of Forestry Corporation
10 Objectives of Forestry Corporation
(1) The principal objectives of the Corporation are as follows—(a) to be a successful business and, to this end—(i) to operate at least as efficiently as any comparable businesses, and(ii) to maximise the net worth of the State’s investment in the Corporation,(b) to have regard to the interests of the community in which it operates,(c) where its activities affect the environment, to conduct its operations in compliance with the principles of ecologically sustainable development contained in section 6(2) of the Protection of the Environment Administration Act 1991,(d) to contribute towards regional development and decentralisation,(e) to be an efficient and environmentally sustainable supplier of timber from Crown-timber land and land owned by it or otherwise under its control or management.(2) Each of the principal objectives of the Corporation is of equal importance.(3) The Corporation also has, in exercising its functions as the land manager of a forestry area, the objectives of a land manager under Part 5.(4) The provisions of section 20E of the SOC Act do not apply to the Corporation.
11 Functions of Forestry Corporation
(1916 Act, ss 11 and 11AA)
(1) The principal functions of the Corporation are as follows—(a) to carry out or authorise the carrying out of forestry operations in accordance with good forestry practice on Crown-timber land or land owned by the Corporation,(b) to take or authorise the taking of forest materials from State forests or land owned by the Corporation,(c) to sell, supply or process timber, forest products or forest materials taken or harvested under paragraph (a) or (b),(d) to establish and maintain plantations,(e) to control and manage, subject to Part 5, forestry areas,(f) subject to the Rural Fires Act 1997, to carry out measures on Crown-timber land for the protection from fire of timber and forest products on that land,(g) to grant forestry rights in respect of State forests, timber reserves or land owned by it, including any such right that is for the benefit of the Corporation,(h) to acquire, hold, sell or otherwise deal with or trade in carbon sequestration rights (including for the benefit of other persons).(2) The Corporation may—(a) provide facilities or services, or undertake activities, that are ancillary or incidental to its principal functions, and(b) conduct any business or provide any service (whether or not related to its principal functions) that it considers will further its objectives.(3) The Corporation has such other functions as are conferred or imposed on it by or under this or any other Act or law.(4) Despite any other provision of this Act, the Corporation is not authorised to take or authorise any other person to take any timber, forest products or forest materials from any Crown-timber land that is the subject of a forestry right unless the forestry right is held or granted by the Corporation.
12 Ownership of trees in State forest plantations
(1) The Corporation is the owner of the trees in any plantation that is or is part of a State forest.(2) Subsection (1)—(a) has effect even though State forests are vested in the Crown, and(b) operates to extinguish any existing rights in any such trees before the commencement of this section.(3) The provisions of this section have effect despite anything contained in section 42 of the Real Property Act 1900.(4) Compensation (including damages or any other form of monetary compensation) is not payable to any person or body because of the enactment or operation of this section or for the consequences of that enactment or operation.