AYB230 Lecture Notes - Lecture 1: Limited Partnership, No Liability, Settlor
Document Summary
What is a company: a separate legal entity created by registration with the australian. Securities n investments commistion: has most of the powers of a natural person, the owners often have limited liability, but this depends on the type of company, extensively regulated by the corporations act 2001 (cth) Internal management is regulated by the corporations act n the (cid:272)o(cid:373)pa(cid:374)(cid:455)(cid:859)s (cid:272)o(cid:374)stitutio(cid:374). Operators (directors/senior officers) external parties ( ato, customers, suppliers) Disadvantages: substantial compliance costs, extensive public disclosure requirements, significant regulation and oversight. Ltd liability of members can be lifted in certain circumstances. Limited liability: perpetual succession, ownership is transferrable, access to potentially unlimited no. of investors, can enter contract, flexibility in establishing internal rules, 30% tax rate. 1. 0 introduction: sole trader (2nd, partnership (4th, trust (3rd, company (most popular) Issues to consider: establishment fees, financing options, compliance costs, record keeping, disclosures, tax issues, asset protection, personal liability.
