Corporations Law Referral Welcomed

A coalition of business, financial and legal groups has welcomed the introduction into the New South Wales Parliament of the first state legislation referring corporate regulatory powers to the Commonwealth. The coalition calls on other states to follow suit as soon as possible.

The introduction of the New South Wales legislation is a critical step towards finally resolving the uncertainty that surrounds the national Corporations Law. It follows the recent agreement between the Prime Minister and the Premiers of New South Wales and Victoria on terms for the referral of their powers to the Commonwealth.

The legislation, supported by a revised Corporations Agreement between governments, provides a sensible outcome that balances concerns of the states over the use of the referred power with certainty and consistency in corporate regulation across Australia.

The coalition urges other states to enact their referring legislation as soon as possible. It warns that delay will only risk further damage to Australia’s international financial reputation, caused by recent decisions undermining the operation of the Corporations Law.

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