Financial Transactions of Certain Companies and Other Bodies Act, 1992

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Number 11 of 1992

FINANCIAL TRANSACTIONS OF CERTAIN COMPANIES AND OTHER BODIES ACT, 1992

ARRANGEMENT OF SECTIONS

Number 11 of 1992

FINANCIAL TRANSACTIONS OF CERTAIN COMPANIES AND OTHER BODIES ACT, 1992

AN ACT TO MAKE FURTHER PROVISION IN RELATION TO FINANCIAL TRANSACTIONS BY COMPANIES AND OTHER BODIES WHOSE POWER TO BORROW MONEY IS SUBJECT TO THE CONSENT OF THE MINISTER FOR FINANCE. [17th June, 1992]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

Interpretation.

1.—In this Act—

“consent of the Minister” includes approval of the Minister and concurrence of the Minister and includes consent of any other Minister of the Government given after consultation with the Minister where such consultation is prescribed by statute;

“the Minister” means the Minister for Finance.

Power to effect certain financial contracts.

2.—(1) (a) A person, other than ACC Bank plc and the Industrial Credit Corporation plc, whose power to borrow money is subject to the consent of the Minister, whether or not it is subject to consultation with or to the consent, approval or concurrence of any other Minister of the Government, shall have and be deemed always to have had the power to effect contracts (including contracts in a currency other than the currency of the State) whose purpose or one of whose purposes is—

(i) to eliminate or reduce the risk of loss arising from changes in interest rates, currency exchange rates, commodity prices or from other factors of a similar nature affecting the person's business,

(ii) to eliminate or reduce the cost of borrowing or the cost of other transactions carried out in the course of that business, or

(iii) to increase the return on an investment including a loan.

(b) In this subsection a reference to a person shall include a reference to a subsidiary or holding company of that person and any other subsidiary of such holding company, and “subsidiary” and “holding company” shall have the meanings assigned to them in section 155 of the Companies Act, 1963 .

(2) (a) The exercise by a person after the passing of this Act of a power to effect contracts referred to in subsection (1) of this section shall be subject to and in compliance with—

(i) requirements specified by the Minister as to the type or types of contract that may be effected under that subsection,

(ii) any conditions specified by the Minister in relation to the particular person aforesaid, and communicated to the person by the Minister.

(b) (i) A specification under subparagraph (i) of paragraph (a) of this subsection shall only be made by the Minister after consultation with any other Minister of the Government who, having regard to his functions, the Minister considers ought to be consulted.

(ii) A specification under subparagraph (ii) of the said paragraph (a) shall only be made by the Minister after consultation with any other Minister of the Government who, having regard to his functions, the Minister considers ought to be consulted.

(3) ACC Bank plc and the Industrial Credit Corporation plc shall have and be deemed always to have had the power to effect contracts such as aforesaid for the purposes aforesaid as well as for the purposes of the businesses carried on by them.

(4) Where a person to whom subsection (1) of this section applies effects a contract with another person in purported exercise of the power to effect contracts referred to in that subsection but the purpose for which the first-mentioned person effected the contract was not one specified in that subsection or subsection (2) of this section was not complied with, that other person—

(a) may, unless he is shown to have been actually aware at the time when he effected the contract of the purpose or non-compliance aforesaid, enforce the contract against the first-mentioned person, and

(b) shall not be and shall be deemed never to have been required to enquire as to such purpose or as to compliance with the said subsection (2).

Expenses.

3.—(1) The expenses incurred by the Minister in the administration of this Act shall be paid out of moneys provided by the Oireachtas.

(2) The expenses incurred by any other Minister of the Government in the administration of this Act shall, to such extent as may be sanctioned by the Minister, be paid out of moneys provided by the Oireachtas.

Short title.

4.—This Act may be cited as the Financial Transactions of Certain Companies and Other Bodies Act, 1992.