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Monday, 22 June 1998
Page: 3648


Senator IAN CAMPBELL (7:48 PM) —I will respond to that, but I am not going to take any more time on this. We have spent nearly one hour on one line of the bill, but that is not to say that this is not an active, positive and constructive review of a complex piece of legislation. It makes it quite clear at (2)(b) under 601GA that the funds are only available in relation to the proper performance of those duties. If the manager has not properly performed those duties and he is found to be in breach of 601MA, then the money is going to have to come out of the manager's pocket.

Senator Cooney, this reinforces something I read from an independent commentator on the bill. I gave a speech recently in Sydney at a law firm called Freehill Hollingdale and Page, who have written an independent analysis of the director's duties changes that we are bringing in under the corporate law economic reform program. They are warning their clients that they need to look at these directors' duties—particularly for directors of managed investment schemes—under the government's proposed Managed Investments Bill.

I cannot quote them, because I do not have their newsletter in front of me, but I paraphrase them as saying, `the onerous new responsibilities placed on directors under this bill.' In other words, they are saying, `If you are a director of a managed scheme, beware, because you have onerous new responsibilities over and above what you would have if you managed an existing scheme.' That is from an independent commentator who has looked at the director's duties under this bill, looked at it under the corporate law economic reform program and said, `If you are a director and you are a client of Freehill Hollingdale and Page, beware, because you have onerous new responsibilities placed on you by the government in Canberra.'