Law of Business Organizations - PDF
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Added on 2021-06-18
Law of Business Organizations - PDF
Added on 2021-06-18
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LAW OF BUSINESS ORGANIZATIONS NameProfessor’s Name Institution Affiliation Date
2Registration of a Company in AustraliaThere are various steps that are followed when one is registering a company. It is essential that all the steps be followed keenly to ensure the successful registration of the business. In Australia, companies are mostly regulated by the statue and the general law. There are only four types of companies that are allowed to be registered under the corporation's act (2001). There are various steps that are followed when registering a company in the country as outlined by the corporation act 2001. This act provided a guideline on what was to be done whileregistering the company.Business structureThe first step was to decide on the type of business structure that the business would adopt. The corporation’s act of 2001 defines a company as a legal entity that has various characteristics. Among them includes that it can perform all the duties that a corporate body can deliver, it can sue and be sued, it has what is termed as perpetual succession, and lastly, it can acquire, hold and sell the property. The company in this case is a public corporation that has limited liability. This structure was suited for the company for various reasons among them being that the company will be seen as a separate entity from the individuals that are involved. Inthis type of business, the personal assets of the shareholders are not threatened by the losses or the debts that a company may incur. However, the only exception to this is when the shareholders choose to be guarantors for the performance of the business. The other reason why this structure was selected is that the tax rates are fixed, and the company will be directed by appointed directors, secretaries, and managers1. All of them have their responsibilities well outlined, and they perform their duties according to their designated job descriptions.2 The 1 Tennent, K. (2013). Management and the Free-Standing Company: The New Zealand and Australia Land Company c .1866–1900. Journal Of Imperial & Commonwealth History, 41(1), 81-97. doi:10.1080/03086534.2013.7621582A Bill For An Act To Make Provision For The Government Of The Australian Capital Territory In Relation To The Formation Of Companies, The Regulation Of Companies So Formed, The Registration In That Territory Of Certain
3company can still have various employees who may include both the shareholders and the managers of the company. The transfer of ownership of the corporation is a simple process. Despite all this, the chosen company structure still comes along with various disadvantages. Among them includes the complications that arise along with the formation process and more so there is so many regulations by the corporation act 2001 through the “Australian securities and investment commission (ASIC)”.Company NameAfter deciding on the business structure the second step was to come up with the name ofthe business. Coming up with a company name is also a process that has to be keenly followed inthe process of registering a company to ensure that the name is according to the laid down rules and regulations. Even though a company name in most cases is not compulsory, the name of the company may act as its Australian company number (ACN), and this is a unique number that is given to a company when the ASIC registers it. This number must show on various documents ofthe business such as the accounting statements, receipts and orders for goods and services. The company name has to show the legal status of the company, and this is a mandatory requirement by the law. In this case, the company has to show propriety and liability of the members. More so the company has to show the liability of the members unless it’s a situation where the liability of the memberships is unlimited. In this case, the name of the business had to end with proprietary limited. It should be noted that a company cannot choose a company name that has already been registered to another corporation or company. The company name selected hence had to be run through the ASICs company name availability to determine if it was free for use byanother firm. The chosen name for the company was Simons Pty Ltd. We used the Australian Other Bodies And Certain Other Matters. 1980. [Canberra]: Commonwealth Government Printer.
4government business registration platform to register the company as required. The next step wasto decide on the territory of registration and even though the company was to be designated Australia-wide the central area in which it would be registered is the New South Wales states. The registered address of the company was chosen, and the primary business address also included in the registration.Replaceable Rules and the Constitution of the CompanyThe constitution refers to a set of rules that govern the general operation of a business anddetermines its relationships and activities that take place in a particular company. The constitution acts as a formal contract that binds the company and the shareholders together as they carry out business. The constitution restricts the company and the future stakeholders unlikethe other kinds of contract that mainly concentrate on the present parties. Every individual agreesto observe all the provisions of a particular constitution as long as they apply to the person in some way. The constitution of the company was guided by five main elements and among them were as follows; the designation of the corporation which termed the company as a public entity. This designation determined the company’s reporting procedures and the money-raising practices that it was to adopt. All these were listed in the by-laws of the company. The constitution also specified the number and type of shareholders of the company and the regulations indicated the kinds of stock and the classes of shares that were available to the public. It is these procedures that made it easier to raise funds for the company. The third aspect that the constitution covered was how the board members could be selected and the qualifications that were needed for each of the members. The other element that was included in the constitution was the procedure for corporate record-keeping and schedules when financial
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