Bill
Corporations Amendment (Improving Outcomes for Litigation Funding Participants) Bill 2021
lapsed, as at 2022-07-25. Treasury portfolio.
- Sponsor
- Not recorded
- Portfolio
- Treasury
Recorded stages
- introduced — 2021-10-27
- second reading — 2021-10-27
- second reading — 2021-11-23
- second reading — 2021-11-24
- second reading — 2021-11-24
- committee — 2021-11-24
- third reading — 2021-11-24
- introduced — 2021-11-25
- second reading — 2021-11-25
- other — 2022-07-25
Divisions
- The majority voted in favour of a [motion](https://www.openaustralia.org.au/debates/?id=2021-11-24.115.1) to pass [the bill](https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6802) in the Senate. In parliamentary jargon, they voted to read the bill [for a third time](https://peo.gov.au/understand-our-parliament/how-parliament-works/bills-and-laws/making-a-law-in-the-australian-parliament/). The bill will now go to the Senate for their consideration. There was one rebellion in this division, with Dawson MP [George Christensen](https://theyvoteforyou.org.au/people/representatives/dawson/george_christensen) (Nationals) [crossing the floor](https://peo.gov.au/understand-our-parliament/how-parliament-works/parliament-at-work/crossing-the-floor/) to vote against the rest of the Nationals Party. ### What does this bill do? Unfortunately, the parliamentary library has not (yet?) produced a parliamentary digest on this bill, which is usually the best source of non-partisan information on bills. According to the [bill homepage](https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6802), the bill: > *Implements the government's response to the report of the Parliamentary Joint Committee on Corporations and Financial Services' inquiry into litigation funding and the regulation of the class action industry by amending the Corporations Act 2001 to: establish a new kind of managed investment scheme called a class action litigation funding scheme; and introduce additional requirements for the constitutions of managed investment schemes that are class action litigation funding schemes.* There was much disagreement in the House about what the actual effect of the bill would be, with opponents like Whitlam MP [Stephen Jones](https://theyvoteforyou.org.au/people/representatives/whitlam/stephen_jones) (Labor) [arguing that](https://www.openaustralia.org.au/debates/?id=2021-11-23.103.1) it is an "* — 2021-11-24, House of Representatives: affirmative, ayes 66, noes 63
- The majority voted against an [amendment](https://www.openaustralia.org.au/senate/?gid=2021-11-25.37.1) to a motion, which means it failed. ### Amendment text > *At the end of the motion, add "and, in respect of the [Corporations Amendment (Improving Outcomes for Litigation Funding Participants) Bill 2021](https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22legislation%2Fbillhome%2Fr6802%22), the provisions of the bill be referred immediately to the Economics Legislation Committee for inquiry and report by 24 March 2022".* — 2021-11-25, Senate: negative, ayes 24, noes 26
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2021-10-27.
The bill would create a new category of managed investment scheme for class action lawsuits.
It would require court approval of how claim proceeds are shared between scheme members and non-members, such as litigation funders.
The court could adjust a proposed distribution to make it fair and reasonable.
- Introduces a new type of managed investment scheme for class action litigation.
- Requires court approval of the distribution of claim proceeds between scheme members and non-members.
- Allows the court to modify a proposed distribution to ensure fairness.
Participants in class action litigation funding schemes, including investors and litigation funders.
Sources
em
billhome