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Principles of accounting Assignment

   

Added on  2021-06-18

10 Pages2559 Words33 Views
Running head: PRINCIPLES OF ACCOUNTINGPRINCIPLES OF ACCOUNTINGName of the StudentName of the UniversityAuthor Note

1PRINCIPLES OF ACCOUNTINGQuestion 1IssueThe issue here is to advice Richard on the steps to be taken in order to register a company.RuleIn order to register a company, the steps laid down in Chapter 2A of the CorporationsAct, 2001 needs to be followed. Section 117 of the act lays down provisions for the applicationto ASIC for the incorporation of a company. The company must apply to the ASIC that with anapplication that contains all the requisites prescribed under Section 117 (2) (a) to (n). Section 117(3) of the act further provides that where the company wishes to be incorporated as a publiccompany a copy of its company constitution must also be provided with the application to ASICunder Section 117 (1) (Hanrahan, Ramsay and Stapledon 2013). The provisions of Section 118of the Corporations Act, 2001 prescribes the various steps that the ASIC is required to takefacilitate incorporation of the company. This section states that once a company has made anapplication under Section 117 (1) of the Corporations Act, 2001 the ASIC may give the companyan ACN number as per Section 118 (1) (a) of the act, it may register the company as provided forin Section 118 (1) (b) of the act and issue a share certificate for the company as provided for inSection 118 (1) (c) of the act. The section also provides that the ASIC must keep a record of suchregistration at subsection 118 (2) of the act (Sealy and Worthington 2013).Section 119 of the Corporations Act, 2001 provides that on the ASIC registers thecompany under the provisions of Section 118 (1) (b) of the act the company becomes anincorporated body from the date specified in the certificate of registration (Hannigan 2015). Thusthat brings an end to the incorporation process. The provisions of Section 120 state that from the

2PRINCIPLES OF ACCOUNTINGdate of registration of a company the members and directors (as specified in the application toASIC under the provisions of Section 117) effectively become members and directors of thecompany (Parker 2013).Section 121 of the Corporations Act, 2001 provides that the registered office of thecompany as specified in the application to ASIC commences functioning as the registered officeof the company from the date of registration mentioned in the certificate of registration (Ferranand Ho 2014). Section 123 of the Corporations Act, 2001 further lays down that a company mayhave a common seal.ApplicationThus from the given set of facts and circumstances we see that Richard wants toincorporate a company. Thus, in order to do the same he would first have to apply to the ASICunder the provisions of Section 117 (1) of the Corporations Act, 2001 and ensure that all therequisites prescribed under Section 117 (2) are included in the application these are (Finch andMilman 2017):a)The type of company it would be registered as.b)The proposed name of the company or the ACN.c)The name and address of all individuals who would become member of the company.d)The family name and place of birth and other details of all individuals who wouldbecome directors of the company.e)The same details for all individuals who would be company secretaries for the company.f)The address of all individuals who consent to being a director of the company.g)Address of the proposed registered office of the company.

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