The constitutional basis of s 447A: Is it a power without limit?
- Lawbook Co
- Publication Type:
- Journal Article
- Insolvency Law Journal, 2006, 14 (3), pp. 135 - 149
- Issue Date:
Section 447A of the Corporations Act 2001 (Cth) provides the court with a unique power that allows it to mould the voluntary administration process to suit the needs of individual companies. The enactment of a federal corporations statute in 2001 has brought into question whether this power fits within the constitutional limitations that are imposed on federal law-making power. The suggestion has been raised recently that the power is so broad that it is constitutionally invalid. This article argues that the power is constitutionally valid principally on the basis that, despite its potential for broad application, the power has defined limits which retain its status as a judicial power.
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