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Applicable Law to Company in Australia

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Added on  2020-04-07

Applicable Law to Company in Australia

   Added on 2020-04-07

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1Cover pageName of the studentStudent IDword count
Applicable Law to Company in Australia_1
2ContentsSolution 1....................................................................................................................................................3Issue........................................................................................................................................................3Applicable law.........................................................................................................................................3Application of law and conclusion...........................................................................................................6Solution 2....................................................................................................................................................6Issue........................................................................................................................................................6Applicable Law.........................................................................................................................................6Application of law and conclusion...........................................................................................................8Reference list...............................................................................................................................................9
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3Solution 1Issue The steps that are required by Richard and his son’s to establish a company?Applicable lawA company once incorporated is an artificial person in law. When any company is formed inAustralia, then, it gains the status of an artificial legal person who is a separate legal person inlaw and is construed as separate from its officers and owners. This characteristic of separate legalentity is analyzed in Salomon vASalomonand Co Ltd [1897]. (Rambarran Mangal, 1995)Once a company is registered then there are various characteristics that are associated with it.Some of the characteristics are that it has its own separate personality, that is, the acts of thecompany are carried out in its own name and the directors and shareholders are not accountablefor the same. Apart from the abive, some of the other characteristics of a registered company are;(Tomasic et al, 2002)i.The liability of the company is limited unless the company is an unlimited liabilitycompany (Lee v Lee's Air Farming Ltd[1960]);ii.There are various tax advantages;iii.There is perpetual succession and a company never dies. iv.It is easy to raise capital.v.The shares of the company can be transferred easily.But, how to gain this separate lawful position?In order to convert a business in the form of a company there are few statutory guidelines thatneeds to be comply with. The same are submitted herein below: (ASIC, 2017)i.The types of the company - The first step is to select the kind of company that aperson intends to operate. There are various kinds of companies that can be operatedin Australia. The same are: (James, 2008)a.Limited liability company – The liability of the owner/shareholders is only up tothe value of the shares hold by them;
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