Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-cd9895bd7-lnqnp Total loading time: 0 Render date: 2024-12-22T20:44:54.393Z Has data issue: false hasContentIssue false

2 - Australia

The architecture of corporate governance

from A - Australia and Asia

Published online by Cambridge University Press:  05 July 2013

By
Jennifer G. Hill
Edited by
Andreas M. Fleckner  and
Klaus J. Hopt
Andreas M. Fleckner
Affiliation:
Max-Planck-Institut für ausländisches und internationales Privatrecht, Germany
Klaus J. Hopt
Affiliation:
Max-Planck-Institut für ausländisches und internationales Privatrecht, Germany
Get access

Summary

Introduction

Although Australia technically has a state-based system of corporate law, the primary legislation, the Corporations Act 2001 (“Corporations Act”), effectively operates as a “federal” rule. This is due to a reference by each state of its powers relating to corporations to the federal government. This broad referral of powers constituted an attempt to unify and harmonize corporate law rules and improve corporate efficiency in Australia.

In spite of this statutory centralization, Australian corporate governance is highly fragmented and occurs “in many rooms.” During the 1990s, the emergence of “corporate governance” as an ubiquitous commercial goal coincided with a deliberate withdrawal from direct regulation by the government. Yet, since that time, Australian corporate law has been the subject of almost continual statutory reform. Not everyone views this dynamic and evolving regulatory picture in a positive light. A former Australian judge has stated, for example, that these reforms have “added substantial . . . complexity” and “created obfuscation” in the area of corporate law. The ongoing focus on good corporate governance in the commercial realm has also contributed to this intricate regulatory picture.

Type
Chapter
Information
Comparative Corporate Governance
A Functional and International Analysis
 , pp. 106 - 155
Publisher: Cambridge University Press
Print publication year: 2013

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Bird, J. and Hill, J., “Regulatory Rooms in Australian Corporate Law,”Brooklyn Journal of International Law 25 (1999), 555, n. 1.Google Scholar
Corbett, A., “A Proposal for a More Responsive Approach to the Regulation of Corporate Governance,”Federal Law Review 23 (1995), 277CrossRefGoogle Scholar
Schelluch, P. and Gay, G., “Corporate Governance,”Company and Securities Law Journal 15 (1997), 235.Google Scholar
Commonwealth of Australia, Corporate Law Economic Reform Program (1998), available at Google Scholar
Holland, J., “Self Regulation and the Financial Aspects of Corporate Governance,” The Journal of Business Law (1996) 127, 131, n. 12
Cadbury, A., Reflections on Corporate Governance, Ernest Sykes Memorial Lecture 1993 (London: Chartered Institute of Bankers, 1993).Google Scholar
Redmond, P., Companies and Securities Law: Commentary and Materials, 5th edn. (Sydney: Lawbook Co., 2009), p. 63.Google Scholar
Boros, E. and Duns, J., Corporate Law, 2nd edn. (Oxford University Press, 2010)Google Scholar
ABS (Australian Bureau of Statistics), Australian National Accounts: Financial Accounts (Cat. no. 5232.0) June Quarter (Canberra: AGPS, 2008).Google Scholar
Visentini, G., “Compatibility and Competition between European and American Corporate Governance: Which Model of Capitalism?”Brooklyn Journal of International Law 23 (1998), 833.Google Scholar
Stapledon, G., “Share Ownership and Control in Listed Australian Companies,”Corporate Governance International 2 (1999), 17Google Scholar
Lamba, S. and Stapledon, G., “The Determinants of Corporate Ownership Structure: Australian Evidence,” University of Melbourne Public Law Research Paper No. 20 (2001)
Australian Financial Centre Forum, Australia as a Financial Centre: Building on Our Strengths, (November 2009)
Governance Metrics International, Global Corporate Governance Ratings (September 2009)
Sheehan, K., “The Regulatory Framework for Executive Remuneration in Australia,” Sydney Law Review 31 (2009), 273.
Hill, J., “Regulatory Responses to Global Corporate Scandals,”Wisconsin International Law Journal 23 (2005), 367.Google Scholar
ASX, Listing Rule Amendments – New Requirements for a Remuneration Committee and a Company Trading Policy (April 22, 2010)
CAMAC (Corporations and Markets Advisory Committee), Diversity on Boards of Directors (Sydney: CAMAC, March 2009)
CAMAC, Aspects of Market Integrity (Sydney: CAMAC, June 2009)
ACSI (Australian Council of Superannuation Investors), A Guide for Superannuation Trustees to Monitor Listed Australian Companies (“ACSI Governance Guidelines”) (May 2009)
HIH Royal Commission, The Failure of HIH Insurance, Report (2003)
Barry, P., Rich Kids: How the Murdochs and Packers Lost $950 Million in One.Tel (Sydney: Bantam Books, 2002), p. 361Google Scholar
HIH Royal Commission, The Failure of HIH Insurance, vol. I, xxx–xxxii.
Lacey, C. and Hepworth, A., “One.Tel: ASIC Bombshell,” Australian Financial Review [June 15, 2001], 1).
Sexton, E., “Judge Clobbers ASIC Case,” Sydney Morning Herald (November 19, 2009), 1
Heath, W., “One.Telling Wipe-Out: Decision in ASIC v. Rich Finally Delivered,” Mallesons Stephen Jaques Alert (November 2009).
Dunn, E., “James Hardie: No Soul to Be Damned and No Body to Be Kicked,”Sydney Law Review 27 (2005), 339.Google Scholar
Sexton, E., “Hardie Asbestos Lawyer to be ASIC's First Witness in Case Against Board,” Sydney Morning Herald (September 23, 2008), 19.
Parliamentary Joint Committee on Corporations and Financial Services, Corporate Responsibility: Managing Risk and Creating Value (Canberra: Commonwealth of Australia, 2006), pp. 47, 181.Google Scholar
Higgins, E. and Saunders, M., “Deal Breathes Humanity Back into Hardie,” The Australian (December 22, 2004), 1.
CAMAC, The Social Responsibility of Corporations, Report (2006)
CAMAC, Guidance for Directors, Report (Sydney: CAMAC, April 2010)Google Scholar
Rogers, C.J. in a prominent 1992 directors' duties case, AWA Ltd. v. Daniels (1992)
ASX Corporate Governance Council, ASX Corporate Governance Principles and Recommendations, 2nd edn. (Sydney: ASX Corporate Governance Council, 2007)Google Scholar
ACSI (with RiskMetrics), Board Composition and Nonexecutive Director Pay in the Top 100 Companies: 2008 (2009)
ASX, Marked up Amendments dated June 30, 2010 to the Second Edition August 2007 of the Corporate Governance Principles and Recommendations (2010)
Austin, R. and Ramsay, I., Ford's Principles of Corporations Law, 14th edn. (Chatswood: LexisNexis Butterworths, 2010), [7.170].
Bebchuk, L., Coates, J., and Subramanian, G., “The Powerful Antitakeover Force of Staggered Boards: Theory, Evidence and Policy,”Stanford Law Review 54 (2002), 887CrossRefGoogle Scholar
Hill, J., “Subverting Shareholder Rights: Lessons from News Corp's Migration to Delaware,”Vanderbilt Law Review 63 (2010), 1, 39–40.Google Scholar
Knight, S., “The Removal of Public Company Directors in Australia: Time for Change?”Company and Securities Law Journal 25 (2007), 351, 353.Google Scholar
Hill, J., “The Rising Tension Between Shareholder and Director Power in the Common Law World,”Corporate Governance: An International Review 18 (2010), 344.CrossRefGoogle Scholar
AICD (Australian Institute of Company Directors), Resignations or Removal of Directors, Position Paper No. 6 (May 2007), p. 2
ASIC, Removal of Directors of Public Companies, Information Release IR 04–4 (August 17, 2004)
ASX Corporate Governance Council, Review of the Principles of Good Corporate Governance and Best Practice, Explanatory Paper and Consultation Paper (2006)
Weinberg, M. in Downey v. Crawford (2004) 51 ACSR 182, [172]
Austin, R., “Australian Company Law Reform and the UK Companies Bill,” in Austin, R. (ed.), Company Directors and Corporate Social Responsibility: UK and Australian Perspectives (Sydney: Ross Parsons Centre of Commercial, Corporate and Taxation Law, Sydney Law School, 2007), pp. 3, 5–6.Google Scholar
CAMAC, Diversity on Boards of Directors, [8.3]; CAMAC, Personal Liability for Corporate Fault (September 2006)
ASIC, Duty to Prevent Insolvent Trading: Guide for Directors, Consultation Paper 124 (November 2009)
Commonwealth of Australia, Insolvent Trading: A Safe Harbour for Reorganisation Attempts Outside of External Administration (January 2010)
Harris, J., “Director Liability for Insolvent Trading: Is the Cure Worse than the Disease?”Australian Journal of Corporate Law 23 (2009), 266Google Scholar
Young, N., “Has Directors' Liability Gone Too Far or Not Far Enough? A Review of the Standard of Conduct Required for Directors under Sections 180–184 of the Corporations Act,”Company and Securities Law Journal 26 (2008), 216, 216–218Google Scholar
Byrne, M., “Directors to Hide from a Sea of Liabilities in a New Safe Harbour,”Australian Journal of Corporate Law 22 (2008), 255, [1.1]Google Scholar
Harris, J., “An Analysis of the Vines Appeal,”Company and Securities Law Journal 25 (2007), 554.Google Scholar
DeMott, D., “Legislating Business Judgment: A Comment from the United States,”Company and Securities Law Journal 16 (1998), 575, 576.Google Scholar
Hill, J., Masulis, R., and Thomas, R., “Comparing CEO Employment Contract Provisions: Differences Between Australia and the U.S.,”Vanderbilt Law Review 64 (2011)Google Scholar
Ablen, D., “Remunerate ‘Fairly and Responsibly’: The ‘Principles of Good Corporate Governance and Best Practice Recommendations’ of the ASX Corporate Governance Council,”Sydney Law Review 25 (2003), 555.Google Scholar
Chapple, L. and Christensen, B., “The Non-Binding Vote on Executive Pay: A Review of the CLERP 9 Reforms,”Australian Journal of Corporate Law 18 (2005), 263Google Scholar
Hill, J., “Regulating Executive Remuneration: International Developments in the Post-Scandal Era,”European Company Law 3 (2006), 64.Google Scholar
Bartlett, L., “Global Crisis ‘Failure of Extreme Capitalism’: Australian PM,”Agence France Presse (October 15, 2008), 16:43.Google Scholar
Hill, J., “New Trends in the Regulation of Executive Compensation,” in Austin, R. and Bilski, A. (eds.), Directors in Troubled Times (Sydney: Ross Parsons Centre of Commercial, Corporate and Taxation Law, Sydney Law School, 2009), p. 100Google Scholar
Hill, J., “Regulating Executive Pay in the Post-Financial Crisis Era,” in Hill, J. and Thomas, R. (eds.), The Research Handbook on Executive Pay (Cheltenham: Elgar, forthcoming, 2012).Google Scholar
Legg, M., “Shareholder Class Actions in Australia – the Perfect Storm?”University of New South Wales Law Journal 31 (2008), 669.Google Scholar
Lindgren, K. (ed.), Investor Class Actions (Sydney: Ross Parsons Centre of Commercial, Corporate and Taxation Law, Sydney Law School, 2009).
Wood, L., “Wembley Final Score Is a Win for Litigants,” Sydney Morning Herald (June 11, 2010), 6
Bell, A., “CBA says Storm Class Action Premature,” Australian Associated Press Financial News Wire (July 2, 2010).
Dunlevy, M., “Multiplex Settles for $110m: Wembley Disclosure Saga Comes to an End,” The Australian (July 22, 2010), 33.
Butler, B., “Multiplex Shareholders Slam ASIC,” Sydney Morning Herald (July 22, 2010), 3.
Sexton, E., “Corporate Watchdog's Iron Resolve Remains,” Sydney Morning Herald (November 19, 2010), 5.
Pompilio, D., “Should Claims Held by Misled and Deceived Shareholders Rank with Rather than Behind Claims Held by Other Unsecured Creditors of Insolvent Companies?”Company and Securities Law Journal 27 (2009), 426.Google Scholar
Boros, E., “Shareholder Litigation after Sons of Gwalia v. Margaretic,”Company and Securities Law Journal 26 (2008), 235.Google Scholar
Stapledon, G., Institutional Shareholders and Corporate Governance (Oxford: Clarendon Press, 1986)Google Scholar
Hill, J., “Institutional Investors and Corporate Governance in Australia,” in Baums, T., Buxbaum, R., and Hopt, K. (eds.), Institutional Investors and Corporate Governance (Berlin and New York: Walter de Gruyter & Co., 1994), p. 583.Google Scholar
Rawling, M., “Australian Trade Unions as Shareholder Activists: The Rocky Path Towards Corporate Democracy,”Sydney Law Review 28 (2006), 227, 241–243Google Scholar
Bielefeld, S., Higginson, S., Jackson, J., and Ricketts, A., “Directors' Duties to the Company and Minority Shareholder Environmental Activism,”Company and Securities Law Journal 23 (2004), 28, 43–47.Google Scholar
Anderson, K. and Ramsay, I., “From the Picket Line to the Board Room: Union Shareholder Activism in Australia,”Company and Securities Law Journal 24 (2006), 279.Google Scholar
Hill, J., “Regulatory Show and Tell: Lessons from International Statutory Regimes,”Delaware Journal of Corporate Law 33 (2008), 819.Google Scholar
Clark, L., Finding a Common Interest: The Story of Dick Dusseldorp and Lend Lease (Cambridge University Press, 2002).Google Scholar
McCallum, R., “The Internationalisation of Australian Industrial Law: The Industrial Relations Reform Act 1993,”Sydney Law Review 16 (1994), 122.Google Scholar
Hill, J., “At the Frontiers of Labour Law and Corporate Law: Enterprise Bargaining, Corporations and Employees,”Federal Law Review 23 (1995), 204, 206.CrossRefGoogle Scholar
Forsyth, A. and Sutherland, C., “Collective Labour Relations under Siege: The Work Choices Legislation and Collective Bargaining,”Australian Journal of Labour Law 19 (2006), 183.Google Scholar
Chapple, L. and Koh, B., “Regulatory Responses to Auditor Independence Dilemmas – Who Takes the Stronger Line?”Australian Journal of Corporate Law 21 (2007), 1.Google Scholar
Gay, G., “Recent Developments in Australian Auditing Standards,”Company and Securities Law Journal 25 (2007), 122Google Scholar
Mannolini, J., “Convergence or Divergence: Is There a Role for the Eggleston Principles in a Global M&A Environment?”Sydney Law Review 24 (2002), 336, 337–338Google Scholar
Hutson, E., “Regulation of Corporate Control in Australia: A Historical Perspective,”Canterbury Law Review 7 (1998), 102.Google Scholar
Levy, R. and Pathak, N. (eds.), Takeovers Law and Strategy, 3rd edn. (Sydney: Lawbook Co., 2009), [2.1] et seq.
Hill, J. and Austin, R. (eds.), The Takeovers Panel After 10 Years (Sydney: Ross Parsons Centre of Commercial, Corporate and Taxation Law, Sydney Law School, 2011).
Ogowewo, T., “Tactical Litigation in Takeover Contests,”Journal of Business Law (2007), 589, 602–603Google Scholar
McKeon, S. and Farrer, J., “Expanding the Jurisdiction of the Takeovers Panel in the Aftermath of Glencore: A New Chapter Begins?”Company and Securities Law Journal 26 (2008), 517.Google Scholar
Armson, E., “Attorney-General (Commonwealth) v. Alinta Limited: Will the Takeovers Panel Survive Constitutional Challenge?”Sydney Law Review 29 (2007), 495.Google Scholar
Armson, E., “Models for Takeover Dispute Resolution: Australia and the UK,”Journal of Corporate Law Studies (2005), 401.CrossRefGoogle Scholar
Armson, E., “The Frustrating Action Policy: Shifting Power in the Takeover Context,”Company and Securities Law Journal 21 (2003), 487.Google Scholar
Thompson, R., “Takeover Regulation after the ‘Convergence’ of Corporate Law,”Sydney Law Review 24 (2002), 323, 324Google Scholar
Hill, J., “Back to the Future? Bigshop 2 and Defensive Tactics in Takeovers,”Company and Securities Law Journal 20 (2002), 126.Google Scholar
Damian, T. and Rich, A. (eds.), Schemes, Takeovers and Himalayan Peaks: The Use of Schemes of Arrangement to Effect Change of Control Transactions, 2nd edn. (Sydney: Ross Parsons Centre of Commercial, Corporate and Taxation Law, Sydney Law School, 2009).
Lindgren, Justice K., “Private Equity and Section 411 of the Corporations Act 2001 (Cth.),”Company and Securities Law Journal 26 (2008), 287, 295Google Scholar
Mees, B. and Ramsay, I., “Corporate Regulators in Australia (1961–2000): From Companies' Registrars to ASIC,”Australian Journal of Corporate Law 22 (2008), 212.Google Scholar
Welsh, M., “The Regulatory Dilemma: The Choice between Overlapping Criminal Sanctions and Civil Penalties for Contraventions of the Directors' Duty Provisions,”Company and Securities Law Journal 27 (2009), 370.Google Scholar
Comino, V., “The Challenge of Corporate Law Regulation in Australia,”Australian Journal of Corporate Law 23 (2009), 233.Google Scholar
Gilligan, G., Bird, H., and Ramsay, I., “Civil Penalties and the Enforcement of Directors' Duties,”University of New South Wales Law Journal 22 (1999), 417.Google Scholar
Bird, H., “The Problematic Nature of Civil Penalties in the Corporations Law,”Company and Securities Law Journal 14 (1996), 405.Google Scholar
Moodie, G. and Ramsay, I., “The Expansion of Civil Penalties under the Corporations Act,”Australian Business Law Review 30 (2002), 61.Google Scholar
Hill, J., “Recent Developments in Directors' Duties in the Common Law World,” in Lubrano Di Scorpaniello, M. (ed.), Corporate Governance Models and the Liability of Directors (Milan: FrancoAngeli, 2010), p. 19.Google Scholar
Sexton, E., “The Suits that Turned to Dust,” Sydney Morning Herald (April 25, 2009), 1
Frith, B., “Hardie's Adverse Finding Will Be Closely Analysed by Corporate Australia,” The Australian (April 24, 2009), 18.
Durie, J., “Humble Release Crashes Careers,” The Australian (April 24, 2009), 26.
Dawson, B., “Lessons for Directors and Officers from the James Hardie Litigation,”Company Law & Governance Update (May 8, 2009), 4, available at .Google Scholar
Jacobs, M., “Former Hardie Directors Lodge Appeals,” Australian Financial Review (October 17, 2009), 7
Sexton, E., “Accelerated Appeals for Banned Directors,” Sydney Morning Herald (October 2, 2009), 2
Hutton, J., “James Hardie to Appeal,” Australian Financial Review (September 24, 2009), 16.
Washington, S., “Storm Scrutiny: Rogue from Birth,” Sydney Morning Herald, BusinessDay (October 26, 2009), 1.
Stevens, M., “Centro May Become Ultimate Testbed for Board Behaviour,” The Australian (October 22, 2009)
Eyers, J., “ASIC's Centro Case Rattles Boards,” Australian Financial Review (October 24–25, 2009), 22.
McIlwraith, I., “Watchdog Chases Centro Board,” Sydney Morning Herald, BusinessDay (October 22, 2009), 1.
Johnston, E., “Directors Now in the Spotlight,” Sydney Morning Herald, BusinessDay (October 22, 2009), 7.
Austin, R., “A Rapid Response to Questionable Trading: Moving Towards Better Enforcement of Australia's Securities Laws,”Company and Securities Law Journal 27 (2009), 203.Google Scholar
Smith, P., “Advisory Group Questions ASX's Supervisory Role,”Financial Times (September 11, 2008).Google Scholar
Durkin, P. and Jacobs, M., “ASX Stripped of Market Powers,”Australian Financial Review (August 25, 2009), 1, 10.Google Scholar
Washington, S. and Williams, R., “Conflict Resolved: ASX Powers Shifted to ASIC,” Sydney Morning Herald (August 25, 2009), 17.
Williams, S., “Crack in ASX Wall for Potential Rivals,” Sydney Morning Herald (August 25, 2009), 18.
Phesant, B., “Directors Need a Safe Harbour: Hellicar,” Australian Financial Review (March 17, 2005), 3.
Lumsden, A. and Fridman, S., “Corporate Social Responsibility: The Case for a Self-Regulatory Model,”Company and Securities Law Journal 25 (2007), 147.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

  • Australia
  • Edited by Andreas M. Fleckner, Max-Planck-Institut für ausländisches und internationales Privatrecht, Germany, Klaus J. Hopt, Max-Planck-Institut für ausländisches und internationales Privatrecht, Germany
  • Book: Comparative Corporate Governance
  • Online publication: 05 July 2013
  • Chapter DOI: https://doi.org/10.1017/CBO9781139177375.006
Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

  • Australia
  • Edited by Andreas M. Fleckner, Max-Planck-Institut für ausländisches und internationales Privatrecht, Germany, Klaus J. Hopt, Max-Planck-Institut für ausländisches und internationales Privatrecht, Germany
  • Book: Comparative Corporate Governance
  • Online publication: 05 July 2013
  • Chapter DOI: https://doi.org/10.1017/CBO9781139177375.006
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Australia
  • Edited by Andreas M. Fleckner, Max-Planck-Institut für ausländisches und internationales Privatrecht, Germany, Klaus J. Hopt, Max-Planck-Institut für ausländisches und internationales Privatrecht, Germany
  • Book: Comparative Corporate Governance
  • Online publication: 05 July 2013
  • Chapter DOI: https://doi.org/10.1017/CBO9781139177375.006
Available formats
×