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The Corporation Act 2001 : Assignment

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Added on  2020-03-23

The Corporation Act 2001 : Assignment

   Added on 2020-03-23

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1Cover SheetName of the studentStudent IDWord count
The Corporation Act 2001 : Assignment_1
2ContentsSolution 1....................................................................................................................................................3Solution 2....................................................................................................................................................5Issue........................................................................................................................................................5Law..........................................................................................................................................................5Application and conclusion......................................................................................................................6Reference List..............................................................................................................................................7
The Corporation Act 2001 : Assignment_2
3Solution 1If any person wants to carry out his business in the form of a company, then, it is necessary thatthe registration or incorporation requirements of such country must be met. In Australia, theCorporation Act 2001 and the guidelines laid down by ASIC provides with the steps that must beaccomplish in order to establish a corporate entity. (Malbon & Bishop, 2006).A company is of great significance as it is treated as a separate legal entity in the eyes of law.Upon incorporation a company acquires the status of an artificial legal person and has thecapacity to carry out the tasks that can be undertaken by a natural person. A company hasseparate legal capacity, that is, a company is distinct from its officers Salomon vASalomonandCo Ltd [1897].Also, one of the significant advantages of a company is that the liability of a company is limitedin nature. The limited liability of a company signifies that the debt that can be imposed upon theowners of the company is only to such an extent to which they hold shares in the company andrest of the liability must be borne by the company and no officer or director can be heldpersonally liable for the same. (Rambarran Mangal, 1995)So, in order to make a company incorporated, there are few steps that must be complying with:(ASIC, 2017)STEP 1The company can be formed only when it is registered with ASIC. The first step that is requiredis that the person must select the kind of company that he is intended to purchase. The companiescan be public and private (proprietary). A propriety company is a company that is normallyestablished for small undertaking or for private investment entities and is preferred from anypublic company as it does not allow extension of unwanted ownership of the company. If anyperson wishes to carry out its business by way of a proprietary company then there are fewrequirements that must be met. Such as, every private company must have at least 50 nonemployees’ shareholders, also, there must be at least one shareholder and director in thecompany and at least one director must reside in Australia. If the private company appoints asecretary then at least one must ordinary stays in Australia. There is no requirement for theappointment of any auditor. Thus, when these requirements are met, then a person can operate byway of a proprietary company.Step 2No company can operate without its name. Thus, the second step after deciding the kind ofcompany, it is necessary that the name of the company must be decided. As per the requirementsof the corporation law, a person can keep any name he wishes provided the said name must notbe identical or similar with any other name of the company or any business name. No twocompanies can operate under same heads. Also, the name which portrays that the company hasconnection with any royal family or with the government, then, such kinds of names are notpermitted under law. No name must be offensive in nature nor must it be illegal. Further, fewname, such as, banks, consumers, incorporation, royal are not permitted to be kept unless anduntil the same is approved by the government of Australia. (Lawpath, 2017)Thus, the name of the company must be kept with all precaution as it is the name with which thecompany is represented in the market.
The Corporation Act 2001 : Assignment_3

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