LLB203 Study Guide - Final Guide: Kuringgai, Dee Why, Legal Personality
Corporations Power
The Parliament has power, subject to this Constitution, to make laws for the peace, order
and good government of the Commonwealth with respect to ‘Foreign corporations, and
trading and financial corporations formed within the limits of the Commonwealth
Constitution s 51(xx)
Foreign Corporations
Corporations formed outside the limits of the Commonwealth
- Corporations formed in other countries and have some operations within Australia
New South Wales v Commonwealth (Incorporation case)
Trading Corporations
A Trading corporation is one which involves buying and selling—“…buying and selling
are the very heart of trading”. R v Trade Practices Tribunal, ex parte St George County
Council
“Trade” refers to the same phenomena in s 51(xx) as it
does in ss 51(i) and 92
Additional examples of trading companies:
a football association, with majority applying current activities approach (Adamson’s
case)
a state cricket association with its own ground (Hughes v Western Australian Cricket
Association)
oSubiaco Cricket club was not a trading corporation despite some bar trade
because that trade was quite insubstantial in the context of other activities
(Hughes)
1
the Red Cross Society and a hospital (Re E v Australian Red Cross Society)
oBlood transfusions were not provided in “trade or commerce”
a university because at least 28% of the university’s revenue came from
trading activities and this pointed to substantial trading activities that formed a
significant proportion of the universities overall activities (Quickenden v O’Connor)
Tasmanian Hydro-Electric Authority (Commonwealth v Tasmania)
Financial Corporations
find more resources at oneclass.com
find more resources at oneclass.com
A co-operative building society was held to be a financial corporation
Re Ku-Ring-Gai Co-Operative Building Society
ISSUE: whether the Trade Practices Act 1974 (Cth) applied to the Ku-Ring-Gai and
Dee Why Co-operative Building Societies, which were set up to provide low interest
loans to their members for housing, but with only the ancillary (secondary) objective
of making a profit from providing this finance.
HELD: the building societies were “financial corporations”
REASONS: Predominant activity is borrowing money to lend to members. These are
money dealings. The activities of borrowing in order to lend and lending at interest
are financial activities which give the corporation a character which makes it a
financial corporation. (at 634 per Brennan J)
State Superannuation Board v Trade Practices Commission
FACTS: The State Superannuation Board, which provided superannuation benefits to
retired public servants, invested moneys for financial gain and loaned moneys to
members, was a financial corporation
HELD: financial corporation through applying activities test.
REASONS: financial corporation describes a corporation which engages in financial
activities or intends to do so for commercial purposes, whether by way of making loans,
entering into hire purchase agreements or providing credit in other forms, and this activity
is not undertaken for the purpose of carrying on some other business.
This includes corporation who undertakes financial activities to support primary
undertaking. Thus a corporation which is formed by an employer to provide
superannuation benefits for its employees and those of associated employers may
nevertheless be a financial corporation if it engages in financial activities in order to
provide or augment the superannuation benefits.” (at 305-6)
-Corporations that engage in trading activities
Trading or Financial?
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
The parliament has power, subject to this constitution, to make laws for the peace, order and good government of the commonwealth with respect to foreign corporations, and trading and financial corporations formed within the limits of the commonwealth. Corporations formed outside the limits of the commonwealth. Corporations formed in other countries and have some operations within australia. A trading corporation is one which involves buying and selling buying and selling are the very heart of trading . R v trade practices tribunal, ex parte st george county. Trade refers to the same phenomena in s 51(xx) as it does in ss 51(i) and 92. A football association, with majority applying current activities approach (adamson"s case) A state cricket association with its own ground (hughes v western australian cricket. Subiaco cricket club was not a trading corporation despite some bar trade because that trade was quite insubstantial in the context of other activities (hughes)
