Corporations
matters return to the Federal Court (13 July 2001)
The Federal Court of Australia will
regain full jurisdiction to hear corporations matters
from next Monday, 16 July 2001, when a new corporations
law scheme comes into effect.
The new scheme is based upon Commonwealth statutes (the
Corporations Act 2001 and the Australian Securities and
Investments Commission Act 2001) enacted pursuant to powers
referred by the states.
Two years ago, the Federal Court's
jurisdiction under the Corporations Law as it then existed
was severely limited following a ruling of the High Court
of Australia in Re Wakim in which the High Court found
that the cross-vesting scheme, which formed the basis
of most of the Federal Court's corporations law jurisdiction
at that time, was partly invalid. Until then, the Federal
Court handled a substantial number of corporations matters.
The national nature of the new scheme
is emphasised by the fact that the Federal Court and all
the Supreme Courts have adopted harmonised rules so that
the procedures in corporations matters will be the same
everywhere in Australia.
Arrangements have been made in each
Federal Court registry in anticipation of the new scheme
coming into effect, and proceedings under the new scheme
can be commenced in the Federal Court from this Monday.
