In July 1908 a petition from Messrs T. Brentnall, N. Yarwood, and J. E. Thomas, praying that His Majesty might be pleased to grant a Royal Charter to the Aus-tralasian Corporation of Public Accountants, was forwarded through the Governor-General to the Secretary of State.

The petition alleged that:

The Petitioners are advised that under the Constitution an Act of Incorporation cannot be obtained from the Commonwealth Parliament and the Corporation has therefore been compelled to seek registration under the existing State law in New South Wales, and regis-tration in each of the other States as a Foreign Company. The Petitioners desire to point out that no power exists at present in Australia to grant the effective incorporation and legal protection to the name that has been adopted which the members of the Corporation desire, and thus the great benefit to the profession of Public Accountants of a complete federation in Australia is only possible by the issue of a Charter direct from the Crown.

The Secretary of State, in a despatch of 21 August 1908, informs the Governor-General that he will be glad, before considering what advice should be tendered to His Majesty with regard to the petition, to learn whether Ministers of the Commonwealth concur in the view expressed by the petitioners that it is not within the constitutional powers of the Parliament of the Commonwealth to incorporate the Institute by an Act.

The Prime Minister asks to be advised on the question.

In my opinion the Parliament has power to pass an Act incorporating the Institute.

It is true that the specific powers of the Parliament make no mention of account-ants; nor of corporations other than 'Foreign corporations, and trading or financial cor-porations formed within . . . the Commonwealth'.

But in my opinion the power to incorporate an Institute of Accountants is inciden-tal to a number of the specific subject-matters embraced in the legislative power of the Commonwealth; e.g. banking, insurance, bankruptcy and insolvency, trading and financial corporations, etc.

The Parliament has, by section 51 (xxxix), power to make laws with respect to 'Matters incidental to the execution of any power vested by this Constitution in the Parliament . . . or in the Government of the Commonwealth, or in the Federal Judicature, or in any department or officer of the Commonwealth'.

Power to incorporate an Institute of Accountants is unquestionably incidental to the effective exercise of the power of the Parliament to legislate on (inter alia) the specific subjects above mentioned.

The power of the Commonwealth Parliament in this matter is of course one of its 'concurrent' powers. Each State has power, within its own territories, to establish ac-countants' institutes of its own; and to prescribe the qualifications of persons who may carry on the business of accountants in the State. Commonweath legislation cannot, by itself, give a right to act as auditors, etc., in matters which are solely within the State legislative powers-e.g. in the case of municipalities. The Commonwealth can confer on members of an Australian Institute a certain status, and can recognise that status in its own legislation; but it cannot compel the States to recognise that status in matters of purely State jurisdiction.

[Vol. 6, p. 487]

(1) Opinion No. 278.

(2) This opinion was endorsed