Article Review: Banking Royal Commission's Impact on Corporate Law

This report is an article review focusing on the Australian Banking Royal Commission, examining its implications within the context of commercial and corporate law. The review summarizes the article, which discusses the establishment of the Royal Commission in response to issues within the financial services sector. The report explores the commission's objectives, including investigating misconduct and its impact on stakeholders. It highlights the role of regulators and the importance of corporate culture in preventing future scandals. Furthermore, the review analyzes the potential for legal simplifications and reforms in corporate law, emphasizing the need for clear regulations and accountability within the financial industry. The report also includes references to relevant literature and legal frameworks, providing a comprehensive overview of the commission's significance and potential impact on the financial landscape. The student's work is published on Desklib, a platform providing AI-based study tools for students.

Running head: ARTICLE REVIEW 0
AW200 COMMERCIAL LAW
APRIL 13, 2019
STUDENT DETAILS:

ARTICLE REVIEW 1
Article: Banking royal commission will expose the real cost of bad behaviour
Summary of Article
The federal government of Australia has declared the royal commission in financial service
sector on the demand of heads of big four banks. It is proposed that the royal bank
commission will work for twelve months at the project cost of 75 million Australian dollars.
This would not only discover the baking sector but also discover the sectors related to
insurance and wealth management. In beginning, the need of Royal Bank Commission was
not accepted by Prime Minister, however it was accepted because of the political insecurity.
It is said by Andrew Schmulow that the period of 12 months is not sufficient for the Royal
Commission to work. The commission should have more time to work1.
In a letter, the heads of big four banks stated the considerations on the Royal Commission as
‘expensive and diverting’. However, the actual cost is to economy. This is the straight
outcome of conduct of banks. The cost of fund of banks is depended on the risk profile that is
guaranteed by taxpayer by the implied bank assurance that would only be influenced if the
governments itself suffer the credit downgrades. In this way, they are expensive and pointless
interruption at a period while financial institutions face various challenges and issues, and
disturbance from the technologies and increasing international macroeconomic doubtfully.
The bank’s conduct in different field of economy, will influence the saving of investor.
Elizabeth Sheedy, the lecturer of financial risk management said that the banks have
conventionally highlighted investor and stakeholder have had the good return on equity2.
1 Chris Brooks, Signs for the Times: Symbolic Realism in the Mid-Victorian World. (Routledge, 2016).
2 Chris Johnson, Aged Care Royal Commission starts. (Routledge, 2016).

ARTICLE REVIEW 2
Relevance or significance of the Corporate Law
The regulators namely Australian Securities and Investments Commission and the Australian
Prudential Regulation Authority has provided the powers for holding the accounts in bank3.
The Royal Commission will not observe or inspect the regulators such as the Australian
Prudential Regulation Authority and the Australian Securities and Investments Commission.
The Royal Commission will apply the strong policy and proper procedures, involving the
provisions of the Corporate law and new code of conduct. The Royal Commission will
ensure good corporate culture by stopping various scandals. The royal commission will not
award the reimbursement, however would have a power to compel the financial institution,
and bank to make available the witness and document4.
Moreover, the legal simplifications may be complex and lengthy work. By conducting
various programs, the Royal Commission will simplify the laws in relation to income tax and
to reform the corporate law. Undoubtedly, the making simpler the law related to the
industries of financial services will be the tough task5. For that first, the Royal Commission
will decrease the number and field of procedures is itself the great action to the interpretation.
Secondly, this is a time to attract clear connection in a legislature between the specific
regulations that are conducted and basic standards to that those regulations give effect. It is
said by the government that this would consider the additional measures to enlarge the
jurisdiction of Federal Court regarding to the criminal corporate crime. In this way, the Royal
Commission may also refer examples of misbehaviour by bank and its workers and official to
3 Roger Hadley and Hatch Stephen, Social welfare and the failure of the state: centralised social services and
participatory alternatives. (Routledge, 2018).
4 Richard Abel, Conservative conflict and the reproduction of capitalism: the role of informal justice
(Routledge, 2017)
5 "Banking Royal Commission Will Expose The Real Cost Of Bad Behaviour", The Conversation (Webpage,
2019) <https://theconversation.com/banking-royal-commission-will-expose-the-real-cost-of-bad-behaviour-
88380>.

ARTICLE REVIEW 3
applicable Commonwealth, Territorial agencies and the states who can follow the legal
proceedings and criminal proceedings. It is recommended to the Royal Commission that it
should develop the various legislatures and regulations around the culture to make corporate
culture strong. So that, the directors of company would be really held to account for the
upcoming failure and not just explode with warning. For an instance, the director will be
responsible for the breach of duty of care in case of severe criminal misconduct6.
6 Martin Bulmer, Social Research and Royal Commissions (Routledge Revivals). (Routledge, 2015).

ARTICLE REVIEW 4
References
"Banking Royal Commission Will Expose The Real Cost Of Bad Behaviour", The
Conversation (Webpage, 2019) <https://theconversation.com/banking-royal-commission-
will-expose-the-real-cost-of-bad-behaviour-88380>
Abel, Richard, Conservative conflict and the reproduction of capitalism: the role of informal
justice (Routledge, 2017)
Brooks, Chris, Signs for the Times: Symbolic Realism in the Mid-Victorian World.
(Routledge, 2016).
Bulmer, Martin. Social Research and Royal Commissions (Routledge Revivals). (Routledge,
2015).
Hadley, Roger, and Stephen, Hatch, Social welfare and the failure of the state: centralised
social services and participatory alternatives. (Routledge, 2018).
Johnson, Chris. Aged Care Royal Commission starts. (Routledge, 2016).