Business Corporate Law

Running head: BUSINESS CORPORATE LAW
BUSINESS CORPORATE LAW
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BUSINESS CORPORATE LAW1
Question 20
The primary roles of the Australian Securities and Investment Commission include
the enforcement and regulation of the financial services and the company laws for the
protection of the creditors, investors and the consumers.
Under the provisions of the Australian Securities and Investment Act 2001 the ASIC
has the following powers:
 Maintaining, facilitating and improving the performance of all the entities that are
present in the financial system
 Enforcement of the laws that are effective
 In an efficient way receiving and storing of the information provided
 Effective legal administration which can be observed as requiring minimal
procedures
 Making the information in regard to companies and other corporate bodies available
for public use (ASIC, 2019).
Question 21
The ASIC recommend an individual to be following certain steps before the
registration of their company. These steps have been mentioned as the ‘checklist for
registering a company’. The first thing that is required is to check whether the name of the
company that has been selected is available for registration. The next step is to make sure that
the name of the company that has been selected is protected from trade mark infringement
claims from the third parties. The website proposes to use the IP Australia’s Australian Trade

BUSINESS CORPORATE LAW2
Mark Search for ensuring that the proposed name of the company is not in any infringement
on a registered trade mark that already exists (ASIC, 2019).
Case Study 1
Issue
The first issue in the case is how to move the business from partnership to company.
The second issue that can be found is how to sell the business assets to the new
company.
The third issue that can be found is defining the concept of separate legal entity and
limited liability company to the partners.
Rules
For the incorporation of a company under the ASIC 3 steps are followed. The
requirements that a company is obliged to follow before the registration of the company have
been mentioned under the sections 112, 113, 117 and 147-152 of the Corporations Act 2001.
Sections 118 and 119 of the Act provides for the requirements during the registration of the
company by ASIC. The post registration obligations are mentioned under the sections 9, 118,
120-123, 168-178, 251, 286, 325 and 327.
According to the judgment of Salomon v Salomon a company has been described to
be distinct from its owners and hence can be recognize as separate legal entity. A company
has the capacity to contract with its members as a separate legal entity as held in the case Lee
v Lee.