Chris Pearce (Aston, Liberal Party, Parliamentary Secretary to the Treasurer) Share this | Hansard source

I would firstly like to thank those honourable members, the member for Prospect and the member for Hughes, who have taken part in the debate today on the Corporations Amendment (Takeovers) Bill 2007. This bill will ensure the Takeovers Panel has clear, flexible and adequate powers so that it can continue to act efficiently and effectively as the primary forum for resolving takeover disputes without being subject to a constant threat of legal challenge. There is general consensus that, since the panel was reconstituted in March 2000, it has performed its functions well and should continue to do so. The current bill will ensure that the Takeovers Panel will continue to contribute to the current healthy operation of the takeover market in our country.

Recent court cases have thrown some doubt on the extent of the panel’s powers. This bill is designed to remove those doubts, clarify the law and enable the panel to get on with its work. The bill has already been considered by the Parliamentary Joint Committee on Corporations and Financial Services. I want to take the opportunity today to thank the committee for its timely consideration of the bill and note that its feedback is being very closely considered. Some sections of the earlier exposure draft bill have been amended slightly in light of the committee’s review. The committee also considered that the panel should have a broad based jurisdiction in order to discharge its functions without constant concerns about jurisdictional challenges. The questions it raised revolved around whether particular provisions were best designed to achieve the aim sought. The question was raised by the committee of whether alternative wording should be used in paragraph 657A(2)(b). This option has been rejected. The alternative wording suggested would be unduly narrow and difficult to apply, in the view of the government. The wording creates uncertainty, which could lead to increased jurisdictional arguments and increased litigation.

A further question was raised by the committee in relation to equity derivatives and whether the law should be amended to require their disclosure. I think this is a good question, and we are prepared to look at it. This will require very close examination of some of the very complex issues that fall outside the scope of this bill.

In conclusion, this bill will contribute to the open and efficient operation of our takeovers market. It will do that by restoring the position of the Takeovers Panel to that originally intended by the parliament. I therefore commend the bill to the House.

Question agreed to.

Bill read a second time.

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