Use of the Corporate Form for Public Benefit - Revitalisation of Australian Corporations Law

Abstract

This article specifically addresses the theme of revitalisation of Australian law in the facilitation of purpose-based companies. It is the second of two articles on purpose-based governance in the charitable and for-profit spheres. Building on the first article, this article critically analyses relevant features of the Australian corporations law regime. It pays close attention to challenges relating to the application of directors’ duties where companies have multiple purposes and to the drafting of appropriate constitutional provisions. In so doing it draws on insights from overseas jurisdictions that have enacted legislation to enable purpose-based companies.

Keywords: company law, directors' duties, purpose, social enterprise, benefit corporations, stakeholders

JEL Classification: K22, K10