Analysis of Australian Corporate Law – Assignment Help
Introduction
Based on the results of recent High Court judgments, Australia’s federal structure of corporate law is now considered to be under substantial challenge. This paper discusses an overview of the modern developments of Corporate Law in Australia. The paper is divided into three. The first part of the paper reveals the recent innovations in terms of legislation and policy advanced by the government. The second part discusses the milestone decisions promulgated by the High Court. The third part is the conclusion regarding the future steps by the High Court. There have been criticisms on the High Court’s decisions that the trend has been an “uncommon law” system in terms of not abiding by the precedence[1]. It should be noted that the Australian law is a common law system and the decision of the High Court should be based on precedent laid down by previous cases. The paper proposes that while the general trend of the High Court has been “uncommon,” recent developments in the High Court has been a “common” trend because the High Court has always favored the corporations as protected by the Corporations Act in ruling recent cases.
Legislative and Policy Developments
The recent developments in Corporate Law of Australia can be seen on its legislative goals and policy advancements posed by both the legislative and executive branches. Australia has set its national objectives on its White Paper[2]. These objectives are supposed to be met by year 2025. The state aims to be ranked in top five countries for ease of doing business. The Australian government expects that the real income per person will rise from $65,000 to $73,000. The White Paper emphasise on agriculture and food and states in its National Objective 19, “the overall Australia’s agriculture and Food Production System will soon be globally competitive, with the help of productive and sustainable agriculture and food businesses around Australia. Australian food producers and other processors will be recognized globally under innovative and reliable producers for their higher quality and agricultural products, services and technology that they are providing to Asia.”
Sustainable development is also a key feature in business law as National Objective 7 maintains the government’s commitment for Australia to be able to reduced emissions by at least 5% below 2000 level by 2025, and to continue on the way to achieving 80% reduction on 200 levels by 2050. The resource and mining sector also forms part of the National Objectives. National Objective 3 maintains that Australia implements an overall systematic national framework for the purpose of developing, along with financing and maintaining their nationally significant infrastructure that will be able to assist governments and various other private sectors to plan and prioritize infrastructure that will require at least 20 years ahead (White Paper, 2012).
The main legislation on business law is the Corporations Act of 2001.[3] Recently, the Personal Properties Securities Act 2009 (Cth) became operational last 30 January 2012. This law governs financing agreements. Public Private Partnerships (PPP) between the government and corporations are now governed by National Alliance Contracting Policy[4] which took effect last 2011. This law governs public sector infrastructure alliance contract projects across Australia. As the management of business would also relate to the supply of labor for human resources, the Fair Work Act 2009[5] (Cth) was enacted.
Jurisprudential Developments in the High Court
It cannot be denied that the function of the High Court can never be underestimated. For one, the common law system is best highlighted by how the judicial branch of the government decides on cases. It is argued by the author that the High Court still abides by the common law system in ruling cases under the Corporations Act and other salient provisions of the law. Australian High Court is generally considered as the court that has the highest authority related to Australian Judicial system,
The High Court of Australia is considered as the highest court in Australian Judicial system, as its core function is to interpret and implement various laws of Australia; in order to be able to make the decisions related to cases that are related to special federal significance including various other challenges to the constitutional validity of laws and to hear other appeals, that involves of special leave, from Federal, State and other Territory courts.[6] One of the recent decisions of the high court last August ruled on the constitutionality of the controversial profits tax on iron ore and coal mines. The Court held that the treatment of state mining royalties by the Minerals Resource Rent Tax (MRRT) Act and the Imposition Acts did not discriminate between States and that the Acts did not give preference to one State over another.[7]
Prior to this controversial decision the High Court has been involved in controversial decisions which caused the legislative branch of the government to legislate laws to address the lack of provisions in the law or gap in existing laws. In the case of Queen v. Hughes[8], according to the commonwealth DPP, alleged that Hughes had breached the Corporations Act of Western Australia by obtaining $300,000 from investors and investing this through a United States securities house. The High Court ruled on the constitutionality of Section 29(1) of the Corporations Act. In the case of Bond v. The Queen[9], according to the federal structure of Australia’s corporate law it clearly states that public prosecutions do not have the power by any means to appeal against a sentence imposed for a breach of a state Corporations Act. The decisions have become on top of public scrutiny because of the seeming importance and significance granted the corporations which trample upon individual rights.
Conclusion
In any federal system where powers are usually distributed among the central legislature and those of the regions or states or provinces, there will always be indeterminacies and uncertainties. The recent corporate decisions of the High Court prove that the High Court honors the precedent cases in affirming the constitutionality of the provisions of the Corporations Act. The “penumbra of doubt” is always tilted in favor of judge made decisions, that is in accordance to the principle of common law.
[1] Allan, J. An Uncommon Court: How the High Court of Australia has Undermined Australian Federalism. Vol. 30: 245, Sydney Law Review.
[2] Australian Government, Australia in The Asian Century – White Papers, Oct 2012
[3] Australian Government, ComLaw, Corporations Act No (50) 2001
[4] National Alliance Contracting, Policy Principles –Department of Infrastructure and Transport, July (2011)
[5] Fair Work Act, Commonwealth No. 28 (2009)
[6] High Court of Australia. Role of the High Court. Accessed on September 8, 2013, from http://www.hcourt.gov.au/about/role-of-the-high-court.
[7] Fortescue Metals Group Limited and Ors v. The Commonwealth of Australia Case S163/2012
[8] R v Hughes (2009) EWCA Crim 841
[9] Bond v The Queen [2000] HCA 13;
