Company Law Report: Exploring Key Concepts in Company Law

This report provides a comprehensive overview of Company Law, analyzing various business structures including sole traders, partnerships, and companies, with a focus on their legal and financial implications. It delves into the rights and obligations of companies, corporate governance practices, and the role of directors. The report examines the significance of company constitutions, the concept of corporate liability, and the powers of members. It also explores equity financing, the remedies available in cases of director's breaches of duty, and the role of voting. The report references various articles to support the analysis, providing a detailed understanding of key concepts and principles within Company Law. The report covers topics from Week 1 to Week 9, providing a detailed analysis of the subject.

Running head: COMPANY LAW
Company Law
Name of the Student
Name of the University
Author note

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Journal Topics Company Law
Week 1 Alternative Business Structures – The business structures include sole traders,
companies, partnerships, associations and trust.
 I believe a sole tradership is referred to as the most easiest kind of
business organization. In such a structure, the concept of
unlimited liability is applicable in this as the sole trader is
personally liable for the debts of the business.
 As per the articles, I have observed that companies are generally
used to create business organization. In companies, there are
proper essential financial and legal merits.
 In my opinion, partnerships are the most regular kind of business
organizations where two individuals or partners form the company
 . As per my knowledge, a trust has necessary merits when they are
linked with a company. Associations on the other hand, are not
used as a business entity.
Week 2 According to the articles, it can be stated that companies and corporations have
the same rights as a human being or a natural debt who can sue and get sued.
However, every company must e registered under the Australian Business
Number. Companies can usually be segregated into two. One being a proprietary
and the other is public. As observed from the articles, the companies of
Australia are governed under the Corporations Act 2001.
Week 3 From the articles, I have observed that for the constitution of a company, a
formal document is necessary since it sets out the rules that govern the
company. A constitution of a company describes the relationship of the
company with its directors, shareholders and other officers associated with the
undertaking. Once a company is constituted, it follows the rules of the

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Corporations Act that is applicable as well. The document of company
constitution is essential as it contains of all the details of formation including the
memorandum and articles of association. As per the articles, the constitution is a
contract that has been formed between each member and the company and
between the company secretary and company. However, I believe that a
company adopt a constitution after and before the registration.
Week 4 According to the articles, companies can deal with outsiders, promoters, and
corporate liability. In my opinion, a company can enter into a contract with an
outsider with the help of an agent who will be acting on behalf of the company.
The outsider or the promoter is usually known as the agent. Without the
authority of the company, an agent cannot act on behalf of it. The company
gives the authority of an agent. Outsiders and promoters must be certain that the
agent they are working with has an actual authority to bind the company.
Authority of the company can either implied or express actual.
Week 5 I believe that the power of the members is in the voting method of the company.
The decisions of the company are dependent on the voting capacity of the
members of a company. It was observed from the articles that the cooperatives
of the consumers distribute the dividends as per their members with trade. The
dividends are usually cleared off by the credit union for representing the interest
on the deposit of a saver. I believe dividends are paid to their shareholders and
the directors establish by which method a dividend must be paid. However,
dividends are mostly calculated based the points one has earned in the line.
Week 6 The articles define corporate governance as the set of practices, rules and
processes based on which a firm can be controlled and directed. The purpose of
corporate governance is to associate with the interests of the company. The
interests will consist of the customers, suppliers, shareholders, community and
the government. On the other hand, as per my knowledge, corporate

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management is essential as it is the process of leading and directing a company.
The management of the company governs and looks after the resources and
strategic planning that can be applied in the process of gaining the objectives of
the company.
Week 7 According to the articles, directors have the duty to supervise and monitor the
entire business and manage the affairs of the company. The article states that the
officers and directors of a company have their specific legal duties and rights
based on the common law. The directors and other officers of a company have a
set of duties and liabilities as mentioned in the law of corporate governance. I
believe directors should act with utmost good faith for the interests of the
company. If the activities are not carried out honestly, the directors and other
officers will be held for a breach of duty. Their duty is owed to the corporation.
Week 8 The article defines that an equity financing is a method to raise the capital with
the help of the shares in an enterprise. I believe it defines a situation where the
sale of an ownership interest is to increase the funds for the purposes of a
business. Such companies should be registered before any kind of finance
products are purchased from the retailer. Therefore, from this it can be
comprehended that the shares of a company are referred to as the shareholders
since they are the ones who have the interest of ownership in the company.
Week 9 As per the articles, it was analyzed that remedies are available when the
directors are liable in committing of duty. A company is known as the legal
personality where only the company has the right for suing if there is any kind
of breach against the companies. There are circumstances and situations when
directors or shareholders can be at fault. Hence, the remedies under the
Corporations Act, 2001 will be applicable in such situations. The article also
states that a minority can claim remedies in the cases of oppression. It has been
recommended that the remedies are available when there is an effect of the