Explanatory Memorandum
(Circulated by the authority of the Minister for Superannuation and Corporate Law, Senator the Hon Nick Sherry)General outline and financial impact
Amendments relating to the disqualification of directors etc
The Corporations Amendment (No. 1) Bill 2008 will provide a mechanism in the Corporations Act 2001 (Corporations Act) for recognising, in Australia, the disqualifications from managing corporations that occur in foreign jurisdictions. Initially, it is envisaged that this mutual recognition will extend only to New Zealand, but the Bill provides a mechanism to enable other jurisdictions to be added at a later date.
The Bill embodies a further incremental step towards achieving the policy goal of a single trans-Tasman economic market based on common regulatory frameworks. The achievement of this policy goal is being progressed under the Australian and New Zealand Governments' Memorandum of Understanding (MoU) on Business Law Coordination.
Date of effect: Upon Royal Assent.
Proposal announced: This measure was announced in the Minister for Superannuation and Corporate Law's Press Release No. 9 of 26 February 2008
Financial impact: Nil.
Compliance cost impact: There will be very low compliance costs imposed on business which will result only from the need to keep abreast of new regulatory requirements.