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Amendment Bill 1995
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
(a) to confer jurisdiction on lower courts to hear civil matters arising
under the Corporations Law (further details below) and to enact
consequential savings and transitional provisions, and
(b) to make an amendment that is consequential on the Corporate Law
Reform Act 1992 of the Commonwealth (further details below), and
(c) to make an amendment that is consequential on the Evidence
Act 1995 of the Commonwealth (further details below), and
(d) to make a minor amendment to clarify the powers of the
Commonwealth Director of Public Prosecutions in relation to offences
under the former companies and securities co-operative scheme laws
(the Companies (New South Wales) Code and related laws) (further
details below).
(See Schedule 1 (1)-(23) and (27) and (28)
The Bill, in conjunction with parallel amendments made to the Corporations
Acts of the other States and the Territories and complementary amendments
to the Corporations Law, will confer jurisdiction in civil matters arising
under the Corporations Law on lower courts (courts that are not superior
courts) throughout Australia. The superior courts (the Federal Court of
Australia, the Supreme Courts of the States and Territories, the Family Court
and the State Family Courts) already have jurisdiction in civil matters arising
under the Corporations Law by virtue of existing cross-vesting provisions in
the Corporations Acts of the States and Territories.
The Bill's conferral of jurisdiction on lower courts will not extend to
"superior court matters" (matters that the Corporations Law reserves to the
jurisdiction of the superior courts) and will be subject to the monetary limits
for civil claims which apply in the lower courts concerned.
The amendments made by the Bill are as follows:
(a)
Schedule 1 (2) inserts new definitions used in the proposed new
provisions (such as "lower court", "superior court" and "superior
court matter").
(b)
Schedule 1 (3) and (7) insert provisions that vest jurisdiction in all
Australian lower courts in respect of civil matters arising under the
Corporations Law (except superior court matters) and provide for the
transfer of those matters between courts. The new provisions parallel
existing provisions of the Act which "cross-vest" civil jurisdiction
arising under the Corporations Law in superior courts.
(c) Schedule 1 (l), (4)-(6) and (8)-(23) make consequential amendments.
(d) Schedule 1 (27) and (28) enact savings and transitional provisions that
are consequential on the above amendments.
Corporate Law Reform Act 1992--consequential amendment
(See Schedule 1 (24))
The Bill will amend the definition of officer in section 60 of the Act to
update a reference to an official manager of a body corporate. The
amendment is consequential on the Corporate Law Reform Act I992 of the
Commonwealth which replaced the official management provisions of the
Corporations Law with provisions for voluntary administration of bodies
corporate, making the term "official manager" redundant. The Bill replaces
"official manager" with "administrator" and "administrator of a deed of
company arrangement".
Explanatory note page 2
Evidence Act 1995--consequential amendment
(See Schedule 1 (25))
The Bill will substitute section 75 of the Act which provides for the
application of certain provisions of the Evidence Act 1905 of the
Commonwealth under the Corporations Law. The amendment is
consequential on the enactment of the Evidence Act 1995 of the
Commonwealth and updates references to provisions of the 1905 Act with
references to the equivalent provisions of the 1995 Act.
Powers of the Director of Public Prosecutions
(See Schedule 1 (26))
The Bill will amend section 91 of the Act to clarify the powers and functions
of the Commonwealth DPP in relation to offences under the former
Companies Codes (and the other legislation of the former co-operative
scheme for companies and securities). The section currently operates to
confer powers and functions on the Commonwealth DPP in relation to those
offences by reference to the powers and functions conferred on the
Commonwealth DPP by the Director of Public Prosecutions Act 1983 of the
Commonwealth ("the DPP Act") in relation to offences against the
Corporations Law (and other "national scheme laws"). There may be a
concern that the DPP Act does not directly confer powers and functions in
relation to offences under national scheme laws (and instead does so as a
result of those laws being treated under the national scheme as laws of the
Commonwealth). To address that possible concern, the section will be
amended to provide that the powers and functions which are conferred by
the section are those that the Commonwealth DPP has under the DPP Act in
relation to offences against the laws of the Commonwealth.
Clause 1 specifies the name (also called the short title) of the proposed Act.
Clause 2 provides for the commencement of the proposed Act on a day or
days to be appointed by proclamation.
Clause 3 gives effect to the Schedule of amendments to the Corporations
(New South Wales) Act 1990.
Schedule 1 makes the amendments explained above.
Explanatory note page 3