Australian corporate law has evolved through various stages

Running Head: BUSINESS LAW 0
CORPORATE LAW IN
AUSTRALIA

BUSINESS LAW 1
PART-A
Australian corporate law has evolved through various stages. Its main forms are classified
into the public and private bodies. The implications of corporate law in relevance to the
accounting profession contribute towards the institution of the global financial reporting
standards and further promote the settings of the global standard through the participation of
the Australian community. So, the functions and powers of the accounting profession are
governed by the Australian Securities and Investments Commission Act 2001.
History of Australian Corporate law
The corporate law of Australia is basically derived from the company law of the United
Kingdom. The legal structure of the Australian corporate law is comprised of a single
national statue i.e. Corporation act 2001 (Burrell & Morgan, 2017). This structure is
controlled or maintained by the Australian Securities and investment commission. Generally,
a company most commonly can start with the limited shares in the market also it is possible
to develop any company by bounding the guarantee, including a number of liability and non-
liability companies. The main focus of the Australian corporate governance is on the public
companies because the public companies which are registered under Australian stock
exchange they have to follow the additional rules and regulations proposed by the principle as
well as the recommendation of a council towards the corporate governance.
The parliament of Australia provided limited power to the corporations of Australia. Every
state of Australia has its residual power which is not linked with the commonwealth power.
When the legislative difference between the states starts increasing due to World War II then
the cost of the companies raised unnecessary which were working in more than one state. A
judgment was legislated for developing a correlation between the states and the
commonwealth in order to support the uniform company code (Crockett & Ali, 2015). There

BUSINESS LAW 2
was some failure of this process that this law was limited with the government once the ruling
government will change the whole legislation of the state have to be designed again. Another
legislation was passed in the year of 1978 further it was amended in 1982 to overcome the
failure of the first scheme (Dignam & Galanis, 2016). Every application for the registration
must be clearly represented regarding the company which is either a public company or a
proprietary company. The liability of the shareholder company must follow the parameters
which are defined below:
 Limited by the help of shares
 Limited with the guarantee
 The sole object of the company must be either related to mining or other mining-
related objects
 It has limitless share capital
From the past several years many amendments are conducted with the Australian corporate
law which explains the impact on the companies. These impacts are defined as below:
 The duties are increased and they are imposed on the director of the company
 The public companies and their related parties have to follow the regulations for
maintaining any transaction
 The disclosure requirements are increased for the public companies
 It is the responsibility of the parental company and the directors to control the trading
of their subsidiary company
 The regulations of public unit trusts have also increased