Outline of the report
This inquiry arose out of concerns about the effectiveness of the legal remedies available when commercial transactions cross international borders. In particular, insolvencies relating to Australian corporate identities Alan Bond and the late Christopher Skase, and the late British media magnate Robert Maxwell, had highlighted problems (information on these three cases can be found in chapters one and two of the ALRC report).
Disputes that involve the laws or courts of more than one country are often marked by intolerable levels of cost, complexity and delay. In many cases the law fails to provide the support Australian firms need in their international commercial transactions.
It was also recognised that the growing involvement of the Australian economy in regional and international trade and investment was creating challenges, which the Australian legal system was having difficulty in meeting.
The ALRC was asked to review the civil remedies available under Australian law and under multilateral or bilateral instruments or arrangements when commercial transactions cross international borders.
The key finding of the report was that Australian firms are exposed to international legal problems that cost them money and inhibit business development opportunities. The report examines these risks in detail and canvasses legal and non-legal remedies.
The report found that the opportunities presented by global trade often conceal legal nightmares. With the rapid expansion of Australia's international trade, the need for effective solutions is pressing.