Section 44 of the Principal Act is amended as follows:

(a) by omitting subsection (1) and substituting the following subsection:

(1)  This section applies to the following:

(a) a proceeding with respect to a civil matter arising under the Corporations Law of Tasmania that is in a court having jurisdiction under section 42(1) or (2) ;

(b) a proceeding with respect to a matter referred to in subsection (1A) of section 42 that is in a court having jurisdiction under that subsection or in the Federal Court.

(b) by omitting from subsection (2) "Where" and substituting "Subject to subsections (3) , (4) and (5) , if" ;

(c) by inserting the following subsections after subsection (2) :

(3)  If a proceeding with respect to a matter referred to in section 42(1A) is pending in the Supreme Court of a State or the Capital Territory (the "relevant jurisdiction" ), the court must transfer the proceeding to the Federal Court unless the matter for determination in it arises out of, or relates to, another proceeding pending in any court of the relevant jurisdiction –

(a) that arises, or a substantial part of which arises, under the Corporations Law of a State or the Capital Territory; and

(b) that is not a proceeding with respect to a matter referred to in section 42(1A)  –

regardless of which proceeding was commenced first.

(4)  Even if the Supreme Court of a State or the Capital Territory is not required by subsection (3) to transfer a proceeding with respect to a matter referred to in section 42(1A) to the Federal Court, it may nevertheless do so if it considers that to be appropriate, having regard to the interests of justice, including the desirability of related proceedings being heard in the same jurisdiction.

(5)  If a proceeding with respect to a matter referred to in section 42(1A) is pending in the Federal Court, the Federal Court may only transfer the proceeding, or an application in the proceeding, to the Supreme Court of a State or the Capital Territory (the "relevant jurisdiction" ) if –

(a) the matter arises out of, or relates to, another proceeding pending in any court of the relevant jurisdiction –

(i) that arises, or a substantial part of which arises, under the Corporations Law of a State or the Capital Territory; and

(ii) that is not a proceeding with respect to a matter referred to in section 42(1A)  –

regardless of which proceeding was commenced first; and

(b) the Federal Court considers the transfer to be appropriate, having regard to the interests of justice, including the desirability of related proceedings being heard in the same jurisdiction.

(6)  Nothing in this section confers on a court jurisdiction that the court would not otherwise have.

(7)  The fact that some references in this section to the interests of justice include the desirability of related proceedings being heard in the same jurisdiction does not of itself mean that other references to the interests of justice, in this section or elsewhere in this Act, do not include that matter.