The final proceeding involved an application for special leave to appeal the decision of the Full Federal Court affirming orders for the issue of summonses under the corporations law of the Australian Capital Territory.
There were two principal arguments in favour of the validity of the legislation: The leading judgement on the main issue of cross-vesting of jurisdiction was written by Gummow and Hayne JJ.
In relation to the first argument advanced in favour of the validity of the legislation it was held that no amount of Commonwealth-state co-operation could supply a power that did not exist.
[3] The second argument was advanced on the basis that the Commonwealth, as the national polity, could do what was necessary "to protect its own existence and the unhindered play of its legitimate activities".
Subsequent decisions in Bond v The Queen[5] and R v Hughes[6] would eventually see the effective downfall of the scheme and lead to the Corporations Act 2001 (Cth).