Australian Corporations Law - History

History

See also: History of companies and UK company law

On the settlement of Australia by white colonists in 1788 the power in relation to corporations was controlled by the United Kingdom. As colonies gained more independence, and their own parliaments, the power to control corporations passed to these parliaments. Each of the colonies passed laws in relation to the regulation of corporations. On federation in 1901, the Commonwealth of Australia gained limited powers, through the constitution, in relation to corporations, most notably:

"51(i) trade and commerce with other countries, and among the States;"

and

"51(xx) foreign corporations, and trading or financial corporations formed within the limits of the Commonwealth;"

These powers did not extend to the formation of corporations, so the formation of corporations continued to be regulated by the states and territories, while the running of the companies was regulated by the Commonwealth. Laws between states and territories were inconsistent. A later attempt at complex cross-vesting arrangements by the states, territories and commonwealth was ruled invalid by the High Court. It was after this, in 2001, that the current arrangement, where the states refer their power to the Commonwealth in respect of corporations was created.

• Strickland v Rocla Concrete Pipes Ltd (1971) 124 CLR 468
• New South Wales v The Commonwealth HCA 2
• Australian Securities Commission Act 1989, and Australian Securities and Investments Commission
• Corporate Law Economic Reform Program Act 2004