Understanding Business and Corporate Law: Identifying Companies and Partnerships

This article discusses the importance of identifying companies and partnerships in business transactions. It also explores the impact of a partner's death on the business and the liabilities of partners. The Partnership Act 1963 is also discussed.

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Business and corporate law
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Business and corporate law
Part D
In businesses, it is essential to have a better understanding of owners and stakeholders of a
certain business before or after transacting with it. This makes it easy to have accountability
as well as surety. In the case of FastCut, the company is seeking to know who the real
members of LuSeKo are. According to the Australian Securities and Investments
Commission, there are remedies and methods that can be used to identify companies and
businesses in Australia. It is essential to first ask for the Australian Company Name or the
Australian Business Name of the business to ascertain whether it is registered or not,
(Polesel et al. 2018). Also, a business license number can be asked for. Secondly, one has to
verify the business name by searching for the name by using Organisations and Business
Names Index Search. Names and numbers used during registration are the unique hence
easy identification of the company. FastCut can also use the Australian Securities and
Investment Commission- ASIC Connect to extract historical information about the business
as well as the names of the directors or company officers. This will provide detailed
information about the business and its members or stakeholders and shareholders.
Part E
Seamus’s death creates a situation of the dilemma which will change the business’s
operation and composition. Because there is a partnership, agreements were signed
between the members and this will determine how the business will move forward,

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(McGregor and Williamson 2018). The partners may have included clauses which guide the
members on the course to take in case of a partner’s death. In some cases, the agreement
may dictate that the estate belonging to the deceases will be taken over by the partnership,
the other members can buy the deceased shares with the help of a financial formula or
lastly, a transfer of the shares to the spouse or family of the partner, (Permadi et al. 2018). It
is also possible for the assets to be sold or the partnership to be dissolved in a situation
where the business cannot be sustained anymore. A Partnership Act will come into play if
there was no agreement. However, in this case, a business was registered thus the existence
of an agreement as part of the requirements when registering a business.
Part F
One of the key aspects of a partnership is that it is not a ‘separate entity’. All business
partners involved are liable for debts incurred in the business. According to Section 13 of
the Partnership Act 1963, all partners are liable for all debts incurred as long as the
partnership still exists. It is thus essential to know that property bought during the
partnership belongs to the business. This is stipulated by Section 26 of the Partnership Act,
(Bi and Smyrnos 2017). On the other hand, partners have to give a full account of all
transactions and activities that he or she participates in (Section 33 (1). Basing on this,
Seamus’s action of deciding to buy a bigger lawn mower makes the company indebted. As
such, this makes Seamus liable for his actions. In the attempt to recover from losses,
Seamus’ Shares should be used to recover the losses faced by the business.

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References
Polesel, J., Klatt, M., Blake, D. and Starr, K., 2017. Understanding the nature of school
partnerships with business in the delivery of vocational programmes in schools in
Australia. Journal of Education and Work, 30(3), pp.283-298.
McGregor-Lowndes, M. and Williamson, A., 2018. Foundations in Australia: Dimensions for
international comparison. American Behavioral Scientist, p.0002764218773495.
Permadi, D.B., Burton, M., Pandit, R., Race, D. and Walker, I., 2018. Local community's
preferences for accepting a forestry partnership contract to grow pulpwood in
Indonesia: A choice experiment study. Forest Policy and Economics, 91, pp.73-83.
Bi, R., Davison, R.M. and Smyrnios, K.X., 2017. E-business and fast growth SMEs. Small
Business Economics, 48(3), pp.559-576.