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CMA Foundation · Fundamentals of Business Laws and Business Communication · Primary and Subordinate Legislation

A State Act lets the State Government make rules on 'matters necessary for implementing the Act'. The Government issues a rule that gives itself power to amend the Act's own sections whenever it wishes. A court is most likely to hold the rule invalid because

The rule is likely invalid because the delegate has assumed power to amend the parent Act, an essential legislative function that cannot be delegated. Delegated legislation must stay within the policy and limits set by the enabling Act, and a rule that rewrites the Act exceeds that authority.

  1. Arules can never be made by a State Government
  2. Bthe delegate has been given or has assumed power to amend the parent Act, which is an essential legislative function that cannot be delegatedCorrect
  3. Crules must always be approved by the President
  4. Da rule becomes invalid only after ten years

Explanation

Essential legislative functions, such as laying down policy and amending the Act itself, cannot be delegated. A rule that amends the parent Act goes beyond the delegation and is therefore invalid. Rules can be made by State Governments, and no fixed ten-year or Presidential approval condition applies.

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