Legal Analysis: No-Liability Companies and Banking Royal Commission

This report delves into the legal aspects of no-liability companies, specifically focusing on their registration process and characteristics under Australian law, as defined by the Corporations Act 2001. It explores the concept of no-liability, distinguishing it from ordinary limited companies, and outlines the conditions and procedures for registration with ASIC. The report also examines the role and powers of Royal Commissions, particularly the Banking Royal Commission established in 2017, detailing its objectives, the scope of its inquiries, and the powers it holds to gather information and investigate misconduct within the financial services sector. The document references relevant sections of the Corporations Act, key figures associated with the Royal Commission, and provides a comprehensive overview of the commission's terms of reference.

Royal commission

REGISTRATION OF NO- LIABILITY COMPANY
PART 1
No- Liability company are known as public limited company according to their share. On
the other hand, it refers usually related with Australian companies under which shareholder
owners of a company paid certain part of amount that has been due on their share capital.
Whereas, share capital are not accountable for any kind of reimbursement of the amount remain
unpaid if the company requested from them. It has been seen that no liability is being differ from
the ordinary limited debts during the treatment of part paid as shares (Buchanan, 2013).
Process of registration: According to the corporation act, a company can be registered
as a no liability company in only on below mentioned condition such as:
 The company must have a share capital.
 Constitution of the company must be clearly states that their sole purpose is mining, and
 The company does not have a predetermined option to recover calls which are made on
their share from stockholder that unsuccessful to pay them.
According to the section 117(1) of corporation act 2001, the lodging application of no-
liability company during the time. It is essential for the company or person to lodge an
application with ASIC.
 Section 112(2) and (1): A company can be registered as a no liability company in only
certain term and condition. It must be a mining company whose sole objects are used for
the purpose of exploration.
 Section 201A of corporation act, a public company must have at least 3 directors that not
including alternate directors. The another thing is that 2 directors must reside in
Australia. As well as section 204 A, a public company must contain 1 secretary and at
least of them is associated with ordinarily reside in Australia.
 Section 147: It is used in case of any available name to a company unless identical to a
name that is reserved or registered under the act for another body.
 Section 148: A company can have as their name or an available name while registration
process.
 Section 149: According to the corporation act 2001, this section says that all the
abbreviation is acceptable instead of words that are essential part of a company’s name.

 Section 187 of corporation act said that company can use available name or CAN. The
name must also consist of limited word at the end of their name.
PART 2
1.
Royal commission: It is said to major ad-hoc formal public inquires which is being set
up by the monarch on the suggestion of the prime minister to collect data regarding the operation
of existing laws or to make analysis of social education and other matters. It was set up under the
royal commission act 1902 (Royal commission, 2017).
2.
Powers of Royal commission:
It has broad powers to collect data and assist with proper investigation and inquires.
These are called as coercive powers which consists of below information:
(a): Directive witness to appear before it and need them to answer each question under the
affirmation (Rapoport, 2013).
(b): To produce a document or any other specific material piece of evidence to the commission.
3.
Correct name of banking royal commission:
The banking royal commission and Hayne Royal commission is a royal commission
which is found in 2017 by the Australian government pursuant to the “Royal commission act
1902”.
4.
Banking royal commission established in 2017.
5.
Financial Services Minister Kelly O'Dwyer has created banking royal commission.
6.
Kenneth Hayne is known for the commissioner of royal banking commission.
7.
In order to inquire into and report on misconduct in the banking and any other financial
service sector the commissioner was held responsible. The banking royal commission can report

in only those situations when any kind of fraud and misconduct cases are presented or analysed
by the concern bodies.
8.
There are total 6 term of reference with specific subheading which are used by the royal
commission for the purpose of inquire the certain matters.

REFERENCES
Book s and Journals:
Buchanan, D. H., 2013. Development of capitalistic enterprise in India. Routledge.
Rapoport, R. N., 2013. Community as doctor: New perspectives on a therapeutic community.
Routledge.
Online
Royal commission. 2017. [Online]. Available through: < https://www.theguardian.com/australia-
news/2018/apr/20/banking-royal-commission-all-you-need-to-know-so-far>

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