English Joint Stock Company Act

Research of the history in companies and company law in Australia commencing with the English Joint Stock Company Act to the formation of Corporations Act 2001 and Australian Securities and Investment Commission Act 2001

Name: Yao Wang

Student Number: 12167957

Class time: Mon/Wed 5pm

Executive Summary

In this article, the history of the change and evaluation regarding Australia’s Corporation Act is analysed. The time line will be divided into four parts based on the significate changes and evaluations occurred. First, the pre-federation part is focusing on the formation of company law in no liability companies since this was the only difference between British and Australian legislations. After federation, during 1900s to 1940s, the thought of uniformity among all the states into a national act had appeared.  However due to some reasons, the uniformity could not be achieved. The third time frame was between 1950s-1970s, in 1961, the first uniformed act, the 1961 Uniform Companies Act was achieved but the uniformity only existed in the surface well each State has its own “amendments” to the national act. Finally in 1980s-2001, as the extreme need of uniformity of corporation act, the Corporations Act 2001 and Australian Securities and Investment Commission Act 2001 was enact in 2001 and applied to within Australian’s territory.

Background Information          

On February 7 1788, the British Crown Colony of New South Wales was formally promulgated. This is formal starting day of colonial period although the settlement was on Jan 26 1788. Then on 1 January 1901, Australia became an independent nation when the British Parliament passed legislation allowing the six Australian colonies to govern in their own right as part of the Commonwealth of Australia. In 1942, Australia adopted Britain's Statute of Westminster 1931 and Australia has granted the right to pass laws that conflict with UK law. In 1986, the pass of Australia Act 1986 has radically ended any relations with British within Australia. Thus Australia has acquired its fully legislative power and judicial power of final adjudication.

Before Federation, 1820s to 1890s

        In 1828, in the administration of justice in the courts of New South Wales “so far as the same could be applied within those colonies”, means all legislation applied within England to all laws and statutes was in force in Australia. Before federation, the majority part of laws had high similarity but there are still mentionable due to the distinct developments in Australia.  

Australia gold mining boom started in 1851 and heavily populated in mid 1800s. Mining companies required to raise capital from more investors and usually with high risks compared with other business. Comply with the peculiarity of mining companies, the term “No-Liability” company was introduced in 1871 in Victoria. No-liability company is a company that is not entitled to calls on the unpaid issue price of shares. At that time, mining companies were rejected when they raise capital from investors by asking investors to pay unpaid shares. The Mining companies Act 1871 (Vic) was enacted and it is still operative today under the Corporations Act 2001.