While the NSW Governor has not yet approved the Bill, Australian Gas Light Co told the stock exchange that the passing of the Bill through both Houses of State Parliament was an essential first step towards establishing a modern constitution for the company and puts it on a common footing with other Australian public companies.

AGL also told the market a number of other steps are necessary, which will take place after shareholders have approved the corporate conversion and the adoption of the new constitution at the company's next general meeting. AGL said notices calling for a general meeting would be issued within the next few weeks.

Once the conversion has received shareholder approval, AGL said the company would become a modern body corporate registered under the Corporations Act, 2001 and that the 5 per cent shareholding restriction will no longer apply.