Law of Business Organization Report: Australian Company Regulations

This report provides a comprehensive overview of the legal framework governing company registration and share issuance in Australia. It begins by defining key terms such as 'Constitution,' 'Director,' 'Dividend,' and others, clarifying their meanings within the context of the Corporations Act 2001. The report then outlines the process of registering a proprietary company under section 117 of the Corporations Act, detailing the requirements for application, including company name, member details, and share information. It also addresses the role of replaceable rules as defined by sections 134 and 135 of the Act, which govern the internal management of companies. Furthermore, the report covers the registration of members as per section 169 of the Act. Finally, it examines the issuance of shares, specifically preference shares, as per section 254A, highlighting the rights and conditions associated with these shares, such as dividend payments, participation in profits, and priority in capital repayment. The report offers a practical guide to understanding the legal requirements for establishing and managing a company in Australia.

Running head: LAW OF BUSINESS ORGANIZATION
Law of Business Organization
Name of the Student
Name of the University
Author Note

1LAW OF BUSINESS ORGANIZATION
Part 1
Register a Proprietary Company
1. Interpretation and Definition Clause
The constitution of this company is defined the relevant definitions and the definitions which is
applicable for this organization unless otherwise provided elsewhere
Act is defined Corporation Act 2001 (Cth).
ASIC is defined the Australian Securities and Investment Commission.
Company shall mean and include according to this Constitution (Colosia Pty Ltd, A.B.N 563
274 454 84)
Constitution is defined this constitution.
Director is defined a person who will be selected as a director according to the rules of this
agreement or it can be stated that any other person who may be appointed as a director.
Dividend is defined the concluding dividend or provisional as per this constitution.
Member Present is defined the person who must present at the company at the time of any
general meeting or by attorney or by proxy where such a member is elected as a corporate body.
Preference Rate is defined the percentage rate. This rate is calculated by the Directors and shall
be determined based in the certificate share. It might be fixed or variable.
Prescribed Rate is defined the percentage of rate which is calculated by the Banker of the
company from time to time based on the overdraft loans of the organization.

2LAW OF BUSINESS ORGANIZATION
Seal is defined the common seal or official seal of the company.
Securities is defined the shares which has been described in the Corporation Act of 2001.
2. Registration of the Company
The section 117 of the CA has been legislated the process for registration of a proprietary
company. For the registration under the Australian government, the person who wants to register
the company must apply an application with ASIC. The application must include the company’s
proposed name, name and details those persons who will become a member of that company,
purpose of registration, registration number and other class of shares by each of the member
agrees in writing to follow and the amount which will pay for the each of the share, the
registered address of the company's registered office.
3. Replaceable Rule
Section 134 has been stated the legislations of the internal management of the companies which
is governed by this provisions of CA. It is applicable for the replaceable rules. The Section 135
of CA has been described the replaceable rule which is applicable for the proprietary companies
and mandatory rules for public companies.
4. Registration of the members
According to the section 169 of CA Act, the members of the company can register for the
proprietary company. At the time of registration, it should consist of member’s name, address
and the date of register is made.
5. Issue of Shares
As per the Sec 254A clause 2

3LAW OF BUSINESS ORGANIZATION
The company has right to issue the preference shares if it has been attached with the preference
shares by the special resolution of the company for the repayment of capital. It is also included
the participation in profits and surplus assets, dividends which are related to other shares or
classes of preference shares, priority of payment of capital and cumulative and non-cumulative
dividends.