Aussie Law Lecture: Section 51(20) of the Australian Constitution - The Corporations Power

Introduction

Topic: Section 51(20) of the Australian Constitution, commonly referred to as the Corporations Power.

Power Granted: Allows Parliament to make laws for peace, order, and good government concerning:
- Foreign corporations.
- Trading or financial corporations formed within the Commonwealth.
Purpose: To regulate capacities and prescribe conditions for corporations operating in Australia.

Definition: Legal entities created by law, distinct from their members and directors.
- Limited Liability Companies: Directors/shareholders are not personally liable for company debts.
Historical Context:
- Pre-federation: Each colony regulated its own corporations.
- Post-federation: Need for uniform treatment and laws for joint stock companies across the Commonwealth.

Applicable Corporations
- Foreign Corporations: Established outside the Commonwealth but operate within it.
- Trading Corporations: Engage in buying, selling, exchanging goods (including intangible goods like money).
- Financial Corporations: Institutions dealing with money deposits and investments, excluding banks (covered under section 51(13)).
Corporate Activities Under Regulation
- Historically interpreted narrowly—only applicable to activities explicitly qualified as trading, financial, or foreign.
- Post-2006 (Work Choices Case): Broader interpretation includes any activities of constitutional corporations.

Past Tense of 'Formed': Seen as a limitation on Commonwealth power; can regulate but not incorporate companies.
Broader View (Post-2006): Expansion of regulatory scope to all activities of constitutional corporations.
- Key case: Work Choices Case - Set precedent for broader application.

Upcoming Discussion: Detailed examination of the Work Choices Case in the next lecture video.