BUSN2101 Chapter Notes - Chapter 5-6: Australian Company Number, Ampol, Capital Market
Document Summary
Required procedure: decide whether the company will be a proprietary or a public company, decide who will be the member or members of the company. all companies must have at least. The planners will also need to decide the number of shares to be taken up by each member and whether those shares are to be divided into different classes. Consists of: the replaceable rules set out in the corporations act a constitution a combination of the replaceable rules and a constitution. The replaceable rules s135(1): states that the replaceable rules do not apply to single director/ shareholder companies, that is, to proprietary companies in which the same person is both its sole director and its sole shareholder. Single director/ shareholder companies, therefore, have no internal governance rules unless they have adopted a constitution. If an additional member or director joins such a company, the replaceable rules will then apply to the company unless they are displaced by a constitution.
