McNally, Ex parte- Re Wakim-

The case of *McNally, Ex parte - Re Wakim* concerned a dispute brought before the High Court of Australia. The applicant, McNally, sought a writ of prohibition against the respondent, Wakim, who was a judge of the Federal Court of Australia. The underlying issue involved the validity of certain legislative provisions of the *Corporations Law* and their purported extraterritorial operation.

The High Court was required to determine whether the *Corporations Law*, as enacted by the Australian Capital Territory, could validly apply to conduct occurring outside the Territory, specifically in New South Wales. This raised fundamental questions concerning the constitutional limitations on the legislative power of the Australian states and territories, particularly in relation to the extraterritorial effect of their laws and the scope of federal jurisdiction.

The Court's reasoning centred on the principle that state and territory legislation, in the absence of a valid constitutional basis or express legislative authorisation, generally has no extraterritorial operation. The majority held that the *Corporations Law*, as applied in this instance, purported to regulate conduct beyond the territorial limits of the ACT, and that such an exercise of legislative power was beyond the constitutional authority of the ACT. The Court considered the implications of this for the jurisdiction of the Federal Court, which derived its power from federal legislation that incorporated the *Corporations Law*.

Ultimately, the High Court made orders absolute for the writ of prohibition, effectively preventing the Federal Court from exercising jurisdiction in the proceedings before it. This outcome underscored the importance of territorial limitations on legislative power and the constitutional framework governing the relationship between federal and state/territory laws.