- Title
- A legal identity for mutuals: distinguishing between profit and purpose
- Creator
- Apps, Ann
- Relation
- Company and Securities Law Journal Vol. 36, Issue 7, p. 552-552
- Relation
- http://sites.thomsonreuters.com.au/journals/2019/03/14/company-and-securities-law-journal-update-vol-36-pt-7/
- Publisher
- Lawbook
- Resource Type
- journal article
- Date
- 2019
- Description
- In 2017, the Australian Government agreed to implement corporate law reforms recommended by the Hammond Review, including inserting a definition of “mutual entity” in the Corporations Act and introducing a special equity instrument allowing mutuals to access investor capital without risking demutualisation. This article considers the reasons why mutuals have lacked a distinct legal identity – and the implications of the proposed definition of a “mutual entity”. Australia’s “one size fits all” regulatory approach has not well accommodated the member-owned business model. The article distinguishes a mutual from an investor-owned company. It also argues that if mutuals are given the power to issue equity instruments to investors as a separate class of member, there should be statutory recognition and protection of the intergenerational nature of equity in a mutual fund.
- Subject
- Corporations Act; ADIs; regulatory framework; demutualisation
- Identifier
- http://hdl.handle.net/1959.13/1407274
- Identifier
- uon:35713
- Identifier
- ISSN:0729-2775
- Language
- eng
- Full Text
- Reviewed
- Hits: 1364
- Visitors: 1473
- Downloads: 139
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | ATTACHMENT02 | Author final version | 425 KB | Adobe Acrobat PDF | View Details Download |