[3] The five justices in Huddart, Parker were of the opinion that the corporations power was confined to companies already in existence and did not extend to their creation.

After the Second World War it became increasingly clear that these legislative differences were creating unnecessary costs for companies operating nationally.

Thus, the states and the Commonwealth co-operated in the formation of uniform national companies legislation which passed in each jurisdiction by 1962.

The majority (Mason CJ, Brennan, Dawson, Toohey, Gaudron & McHugh JJ) wrote a joint judgement in which they affirmed the view in Huddart, Parker that the corporations power was confined to making laws with respect to companies that had commenced trading and could not be interpreted so as to support laws providing for the formation of companies.

Moreover, the question of giving the Commonwealth the power to legislate for incorporation had been raised and had produced the following response from Sir Samuel Griffith: "There are a great number of different corporations.

Deane J, in opposition to the majority of the court, considered that the wording of s51(xx) could be interpreted so as to give the Commonwealth a general power to incorporate trading and financial corporations.

Although this system functioned effectively for several years it was eventually brought to its knees by the High Court in Re Wakim; Ex parte McNally,[6] Bond v The Queen,[7] and R v Hughes,[8] (2000) 171 ALR 155.