BLAW2006 Lecture Notes - Lecture 1: Corporations Act 2001, Limited Liability, Legal Personality
Document Summary
About companies, company law and the legal nature of companies. Company as a form of business organisation: sole trade and partnership. Growth and size can be restricted as owners carry full liability and owners therefore manage the business: company. Large number of investors can pool their funds, without being involved in management. Investors do not have to manage company"s business; and. There are two types of companies: public companies larger companies, can only be listed on the asx, proprietary companies cannot be listed on the asx. Classifications: ltd limited, unlimited if the company cannot pay its debt, the debt fall back onto the shareholders, limited by guaranty, nl no liability. Public can be classified by 1,2,3 or 4. Proprietary can only be classified as 1 or 2. Architecture of companies: must have at least 1 member: s114. A company needs to have at least 1 member: the capital structure: funded by equity, debt or retained profits.
