Opinion Number. 454

Subject

COMMONWEALTH BANK
WHETHER MAY START BUSINESS WITHOUT DEPUTY GOVERNOR : WHETHER MAY OPEN FOR BUSINESS IN ONE STATE ONLY : WHETHER CHEQUES DRAWN ON BANK SUBJECT TO STATE STAMP DUTY

Key Legislation

COMMONWEALTH BANK ACT 1911

Date
Client
The Secretary to the Prime Minister

The Secretary to the Prime Minister has submitted the following memorandum to me for advice:

I am instructed by the Prime Minister to ask that you will be good enough to furnish advice on the following points:

  1. Whether the Commonwealth Bank can start without a Deputy Governor.
  2. Whether the Bank can be opened in one State only, or must it be opened in all States at the same time.
  3. Whether stamp duty would be chargeable on cheques drawn on the Common-wealth Bank.

As regards question (1), I am of opinion that the Commonwealth Bank could start without a Deputy Governor, as the Governor could do all that is legally necessary.

As regards question (2), I am of opinion that the Bank could be opened in one State only, and that it need not be opened in all the States at the same time.

As regards question (3), I am of opinion that cheques drawn by private persons on the Bank would be subject to duty, but that cheques so drawn on behalf of the Com-monwealth or any Department thereof would not be subject to duty.

[Vol. 10, p. 108]