Corporate Law

This document discusses the suitable business structure for Obama and Osaka for setting up Economical and Healthy Food, which is a Limited Liability Partnership. It also explores the rules and procedures for registration and incorporation of Limited Liability Partnership in Australia.

Running head: CORPORATE LAW 1
Corporate law

CORPORATE LAW 2
Answer to Question 1
The most suitable business structure for Obama and Osaka with regard to the setting
up of the business titled Economical and Healthy Food would be a Limited Liability
Partnership thereby implying that it would not only be a corporation but also imply that both
Obama and Osaka would have limited liabilities (Bainbridge & Henderson, 2016). It further
states that Obama and Osaka will not be liable for the malpractices of each other with regard
to the business activities of Economical and Healthy Food. The laws of the state of Australia
where Economical and Healthy Food would be based would be applicable as far as the
concept of territorial jurisdiction is concerned (Kholis, Fatma, Maksum & Bukit, 2016). As
Obama and Osaka are planning to take a loan of two hundred thousand dollars, the aspect
relating to mortgage would apply. It is also to be seen what is the interest rate of OK bank in
terms of business loans and the time frame the loan has to be repaid (Griggs, Cho, McLaren
& Scheibner, 2018). As a result, it is to be seen what are the properties possessed by Obama
and Osaka which is to be mortgaged to avail the loan of two hundred thousand dollars. In this
aspect, the concept of commercial mortgage would apply since Obama and Osaka would be
taking loan for the purpose of business titled Economical and Healthy Food as far as
investment is concerned. As a result, the policy of commercial mortgage with respect to OK
bank has to be analyzed carefully by both Obama and Osaka.
Answer to Question 2
Each state in Australia has their own rules and procedures related to the registration
and incorporation of businesses having Limited Liability Partnership. The state where Obama
and Osaka plan to establish the business titled Economical and Healthy Food has to be taken
into account first in order to delve in to the laws for registration and incorporation of
businesses as far as their application and implementation are concerned (Lennox & Wu,
2017). Registration and incorporation of Economical and Healthy Food would help in the
determination of the authenticity of its business activities in a proper and appropriate manner
as far as its determination of assets and liabilities are concerned (Pacini, Hopwood & Sinclair,
2016). Since Obama and Osaka have projected that the income which would be generated in
a year would amount to one hundred fifty thousand dollars as a result of the business
activities of Economical and Healthy Food, registration is essential as far as the report for
Goods and Services Tax are concerned taking account of the financial statements in a year.

CORPORATE LAW 3
Additionally, all businesses with the status of Limited Liability Partnership are required to
register themselves prior to the conducting of business through an office space. The
registration must involve the policies and procedures stipulated by the Australian Investment
and Securities Commission (Wright, 2017). The Economical and Healthy Food has to be
issued with an Australian Company Number and Australian Business Number by the
Australian Investment and Securities Commission as a result of such registration.

CORPORATE LAW 4
References
Bainbridge, S. M., & Henderson, M. T. (2016). Limited liability: a legal and economic
analysis. Cheltenham, UK: Edward Elgar Publishing.
Griggs, L., Cho, G., McLaren, J., & Scheibner, J. (2018). Commercial and Economic Law in
Australia. Alphen aan den Rijn, Netherlands: Kluwer Law International BV.
Kholis, A., Fatma, A., Maksum, A., & Bukit, R. (2016). Determinants Of Corporate Social
Performance (CSP) Through Corporate Social Responsibility (CSR) Of Foreign
Investment Companies (PMA) In Indonesia. International Journal of Economic
Research, 13(05), 2005-2027.
Lennox, C. S., & Wu, X. (2017). A review of the archival literature on audit
partners. Accounting Horizons, 32(2), 1-35.
Pacini, C. J., Hopwood, W. S., & Sinclair, D. T. (2016). Domestic asset tracing: Identifying,
locating and freezing stolen and hidden assets. Journal of Forensic Accounting
Research, 1(1), A42-A65.
Wright, G. (2017). Risky Business: Enterprise Liability, Corporate Groups and Torts. Journal
Of European Tort Law, 8(1), 54-77.