Company Law: Alternative Business Structures, Incorporation, Constitution, Directors' Duties, Financing, Members' Remedies

Running head: COMPANY LAW
Company Law
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1COMPANY LAW
Alternative Business Structures - Sole Traders, Companies, Partnerships,
Trusts and Associations.
I believe that, before starting a business we need to have proper information about the
different types of business structure. The most common alternative business structures are:
Sole trader: It is a business structure which is operated by a sole individual. The person
himself is legally responsible for the legal aspects of the business. He can employ individual
under him as a help to run the business.
Companies: Company is a legal entity which is separate from its shareholders, directors and
employees. A company can sue or be sued. I believe it is a complex business structure
(Hannigan 2015).
Partnership: Partnership is kind of an association of two or more people. The partners have
a direct share in the profit of the organisation. They are jointly and independently liable for
the act of each other (Wilkinson et al. 2014).
Trusts and association: A trust is such an organisation which is an arrangement of holding
property for the sake of another person. In a trust person holds income to the benefit of other
person. Whereas an association is a group of people who are joined together to run a non for
profit corporation.

2COMPANY LAW
(Source: Aldred 2018)

3COMPANY LAW
Company and Incorporation
Company is a legal entity and separate from its owners, directors and shareholders,
which needs to be incorporated under the corporation law where it is situated (Sealy and
Worthington 2013). It is governed by the legislation of the Country respectively. In my view
every company must be registered under the respective legislation to avail the legal
safeguards, which is provided for it. Incorporation is a legal process, which is used to form a
separate corporate entity (Talbot 2015). An incorporated company is effectively recognized
to be a person in the eye of law. It gives the company the power to sue or be sued.
(Source: Guides.slv.vic.gov)