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Wednesday, 13 May 1981
Page: 2335


Mr MOORE (Minister for Business and Consumer Affairs)(8.28) —I wish to respond to the two propositions put forward by the honourable member for Hawker (Mr Jacobi). Undoubtedly he has done an enormous amount of work in this area and he is probably enjoying tonight's proceedings. It is arguable that the proposition which he put forward in relation to clause 535 of the Companies Bill is in itself any wider than the definition of 'officer' under clause 229.


Mr Jacobi —It does not cover a receiver. That is the problem.


Mr MOORE —No, but it is a marginal situation. The honourable member cannot claim the points that he has been claiming on the basis of that argument. I understand what he is talking about. I will agree to look at it. But I do not believe the force of his argument really offsets the two balances.

In relation to the matters put forward by the honourable member for Parramatta (Mr John Brown), I can only say that the company directors are the owner's representatives. Those are the facts of life. The board of directors represents the owners. The managing director is the management. I can understand that some sensitivities exist when one looks at the Australian Labor Party in Queensland in relation to its broadcasting station. Some considerable difficulties and problems are being experienced in recognising who represents the owners of the ALP radio station. I can understand the particular interest in the subject. Nevertheless the competence, care and skill of those gentlemen is now being tested in the Supreme Court of Queensland. That will make remarkable reading. I am sure the honourable member had that matter in mind.

The appointment of directors is of considerable significance. The directors represent the proprietors of the corporation. In my view people are sometimes appointed as directors because they are friends within friends rather than people with straightout management competence for appointment to directorships. I understand the points that have been brought forward. The members of boards should recognise that they represent proprietary interests.

Clause agreed to.

Clauses 230 to 246-by leave-taken together, and agreed to.

Clause 247 (Circulation of members' resolutions, etc.).