Study on Corporate Law Rule

Running head: CORPORATE LAW
Corporate Law
Name of Student
Name of University
Author Note

1CORPORATE LAW
Table of contents
Question 1:.......................................................................................................................................2
Question 2:.......................................................................................................................................4
Reference.........................................................................................................................................8

2CORPORATE LAW
Question 1:
After analysing the facts of presented in the case, it can be said that Richard and his son
can achieve benefits if they seek the assistance of a company in order to expand the business.
The benefits available for setting up a company are better if compared to a sole trader or
partnership. The assistance and involvement of a company can help in expanding the business.
This is simply because of the fact that it is easier for a company to raise funds (Kraakman et al.,
2017). Although the cost for the registration of a company is higher than a sole trader or
partnership, it can be considered as expenditure incurred for business purposes. The registration
of a business name can be cheaper as compared to the registration costs required for a
corporation. However, in cases like this, benefits may not be available. Paolella & Durand (2016)
stated that the incorporation of a company could lead an individual to ignore the registration of a
business name. The registration of a company leads to the addition of the term “Pty Ltd”.
According to Abraham (2017), as per the laws, it is necessary to renew the registered name of a
business. The Government charged a fee for the purpose of registration of the name. On the other
hand, corporations need to pay an annual fee to the Australian Securities and Investments
Commission (ASIC). Hence, the involvement of the company can be beneficial for Richard and
his son. They can raise fund for improving the present condition that they are currently facing.
According to Avraham (2014), one of the most advantages that can be achieved with the
incorporation of the company is the fact that the business owners need to have a limited liability
on the business. As per the business laws, in a company, the directors and shareholders are only
responsible for any mishaps that occur in a company. However, the liability is limited only to the
shares that are held by the directors and shareholders. In the case of the partnership or sole