Corporation and Business Structure

RUNNING HEAD: CORPORATION AND BUSINESS STRUCTURE
Corporation and
Business Structure

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CORPORATION AND BUSINESS STRUCTURE
Contents
Introduction......................................................................................................................................4
Part A...............................................................................................................................................4
Issue.............................................................................................................................................4
Rule..............................................................................................................................................4
Application..................................................................................................................................6
Conclusion...................................................................................................................................7
Part B...............................................................................................................................................8
Issue.............................................................................................................................................8
Rule..............................................................................................................................................8
Application................................................................................................................................10
Conclusion.................................................................................................................................10
Part C.............................................................................................................................................12
Issue...........................................................................................................................................12
Rule............................................................................................................................................12
Application................................................................................................................................13

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CORPORATION AND BUSINESS STRUCTURE
Conclusion.................................................................................................................................14
Part D.............................................................................................................................................15
Why one should choose partnership over company..................................................................16
Conclusion.....................................................................................................................................17

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CORPORATION AND BUSINESS STRUCTURE
Introduction
The two most suitable business structures for Food supply chain in Australia is partnership and
company. This report will deal with the third party liabilities, fiduciary duties of director,
analysis of case of ASIC V Vizard and importance of partnership and why it is appropriate
business structure for food supply chain.
Part A
Issue
The main issue in the present situation is what are potential liabilities of Jekyll, Hyde and Pat to
third parties if they choose either of the two business structures i.e. Partnership or Company and
their participants.
Rule
Many Australian business organizations are partnership and in the course of business often have
to cope with third parties and external agencies. Because of the nature of the partnership
relationship, when a liability issue occurs, one partner’s activities may influence the other, and it
is essential to bear in mind some of the liabilities that may arise with regard to outside sides that
could possibly influence all individuals engaged in a partnership. According to s. 5 of
Partnership Act (PA), A partnership is a profit oriented connection or relationship between two
or more individuals.1 The partnership is not incorporated as opposed to a company. The
1 Partnership Act 1891 (s.5)