Explanatory Memorandum
(Circulated by authority of the Minister for Financial Services and Regulation, the Honourable J.B. Hockey MP and the Attorney-General, the Honourable Daryl Williams AM QC MP)Chapter 2 - Outline
2.1. The Bill is one of a package of bills responding to the High Court's decisions in Wakim and Hughes .
2.2. The other bills are:
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- Australian Securities and Investments Commission Bill 2001;
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- Corporations (Fees) Bill 2001;
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- Corporations (Securities Exchanges Levies) Bill 2001;
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- Corporations (Futures Organisations Levies) Bill 2001;
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- Corporations (National Guarantee Fund Levies) Bill 2001; and
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- Corporations (Consequential Provisions) Bill 2001.
2.3. The Bill is designed to replace the Corporations Act 1989 and the Corporations Law of the Capital Territory, and the corresponding legislation of the Northern Territory and those States which make suitable references to the Commonwealth Parliament in accordance with section 51(xxxvii) of the Constitution, as the statutory basis for the formation of companies, corporate regulation and the regulation of the securities and futures industries.
2.4. The Bill will, in effect, re-enact the Corporations Law as a Commonwealth Act capable of operating throughout Australia. The principal objective of this explanatory memorandum is therefore to explain the differences between the Bill and the Corporations Law. Explanatory material for the provisions of the Corporations Law on which the Bill is based may be found in the explanatory memoranda for the legislation that enacted or amended those provisions.