7-644: Corporate Law Economic Reform Program (Audit Reform & Corporate Disclosure) Act 2004 , commonly called CLERP 9 , modified the Corporations Act 2001 (Commonwealth) which governs corporate law in Australia . It was enacted in July 2004. The changes were based on the reform proposals contained in the CLERP 9 discussion paper, Corporation disclosure - strengthening the financial reporting framework , which
14-607: A constitution that may be adopted by a company), duties of officers, takeovers and fundraising. Australian corporate law was the subject of a successful legal challenge in the High Court of Australia in New South Wales v Commonwealth (1990) ('The Corporations Act Case'). In that case, the Commonwealth was found to have insufficient power to legislate in relation to the formation of companies. Section 51(xx) of
21-550: Is some evidence that changes affecting the board of directors were more important to small shareholders than large shareholders. The costs and benefits of changes affecting auditors remain more contentious. Corporations Act [REDACTED] [REDACTED] The Corporations Act 2001 is an Act of the Parliament of Australia , which sets out the laws dealing with business entities in Australia. The company
28-576: Is the Act's primary focus, but other entities, such as partnerships and managed investment schemes, are also regulated. The Act is the foundational basis of Australian corporate law , with every Australian state having adopted the Act as required by the Australian Constitution . The Act is the principal legislation regulating companies in Australia. It regulates matters such as the formation and operation of companies (in conjunction with
35-628: The Ministerial Council for Corporations (MINCO) for approval. The co-operative scheme has come under pressure in recent times as the Commonwealth Government has sought to rely on the corporations power to legislate for its industrial relations reform agenda. This has led to some Labor states threatening to withdraw from the Corporations Agreement. The Act is published in five volumes covering
42-630: The Australian Constitution was found to provide sufficient power for legislation applicable only to foreign corporations and corporations already formed within the Commonwealth. This decision led to the creation of a co-operative scheme, involving a referral of power from the Australian states . Under the Corporations Agreement between the states and the Commonwealth, all changes to the Act must be referred to
49-859: Was released by the Australian government in September 2002. The 2004 amendments also enacted some reforms flowing from the recommendations in the Report of the HIH Insurance Royal Commission released in April 2003. The important reforms to the Corporations Act included: The CLERP 9 changes were intended to improve investor confidence in relation to listed corporations and their financial reports. The evidence regarding their effectiveness in this regard remains mixed. There
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