The Auditor-General has forwarded me the following memorandum for advice: The Commonwealth Bank of Australia has made an investment in Victorian Government Inscribed Stock, in the name of Denison Samuel King Miller, Chairman of Directors, Note Issue Department.

Section 601(1) of the Commonwealth Bank Act 1920⁽¹⁾-Act No. 43-provides that investments may be made by the Board, the Act defining the 'Board' as 'the Board of Directors appointed in pursuance of this Part'.

Will you kindly favour me with your opinion as to whether the investment in the name of Denison Samuel King Miller, Chairman of Directors, Note Issue Department, is an investment by the 'Board' as required by the Act referred to above. In the absence of full details of the documents by which the transaction was effected I am unable to express a definite opinion on the point raised.

If the authority of the Board was given for what was actually done I see no reason for supposing that the transaction was not in accordance with the Act.

[Vol. 18, p. 397]

(1)The Commonwealth Bank Act 1920, by section 7,inserted section 601 into the Commonwealth Bank Act 1911-1914.