BTC1110 Study Guide - Final Guide: Company Secretary, Legal Personality, Corporations Act 2001
8 Aug 2018
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Week 11 - corporations & trusts: companies, their nature and the corporations act 2001 (cth) The concept of permanent existence of the company. S117(1)- an application must be lodged and fees paid to asic. A company comes into existence at the beginning of the day on which it is registered. S124(1)- a company has the full legal capacity of a natural person. It has an existence separate from its members (shareholders), management (directors) and agents (such as employees). S126- authorised agents of the company can make, vary, ratify or discharge a contract on behalf of the company. Salomon v salomon & co ltd - s was the sole proprietor of a very successful shoe making business. Once it was formed, it couldn"t pay some of its obligations. The creditors sought after the man personally. liable. S wasn"t responsible himself for the debts of the company. Court"s decision = companies have a separate legal personality, therefore, s wasn"t.
