13 July 2001

The coalition of business, financial and legal groups welcomes the final step in the referral of State corporate regulatory powers to the Commonwealth. The uncertainty and confusion surrounding the status of corporate regulation in Australia will be removed when the Commonwealth’s Corporations Act 2001 and related legislation come into effect on Sunday, 15 July 2001.

“We believe this to be the most significant referral of powers by the States to the Commonwealth. It is a credit to all governments that they have resolved this issue in a statesmanlike way, to the benefit of all Australians. Credit is also due to the non-government parties that allowed the rapid passage of the necessary Commonwealth and State legislation”, said Dr John Schubert, President of the Business Council of Australia.

“The legislation, supported by a revised Corporations Agreement between governments, provides a sensible outcome that balances the reservations of some States with certainty and consistency in corporate regulation across Australia” said Mr John Hall, Chief Executive Officer of the Australian Institute of Company Directors.

Michael Willis, National President of the Securities Institute said “While the referral of powers addresses the immediate issues surrounding corporations regulation, it is not necessarily a final solution, and consideration needs to be given to a more permanent resolution of this matter”.

“This referral is historic, and demonstrates what can be achieved with true co-operative federalism. But the High Court's decisions in Wakim and Hughes leave unresolved constitutional difficulties for a number of areas of law which had been administered similarly to corporate law during the 1990s, for instance, some family law issues,” said Anne Trimmer, President of the Law Council of Australia. “Constitutional reform supporting modern co-operative federalism for these arrangements is also needed.”

The coalition is comprised of the Australian Institute of Company Directors, the Business Council of Australia, the Institute of Chartered Accountants in Australia, the Investment & Financial Services Association, the Law Council of Australia and the Securities Institute of Australia.

For Further Information Contact

John Hine

Assistant Director

Business Council of Australia

(03) 9610 4222

0418 332 272

Bob Baxt

Chairperson, Corporations Law Committee

Australian Institute of Company Directors

(03) 9613 8718

Kathleen Farrell

Chairman, Corporations Law Committee

Law Council of Australia

(02) 9225 5305

0416 225 571

John Hall

Chief Executive Officer

Australian Institute of Company Directors

(02) 8234 8300

0409 305 916

Mike Willis

National President

Securities Institute of Australia

0412 880 822