BTC1110 Chapter Notes -Business Judgment Rule, Civil Penalty, Trading While Insolvent
6 Jul 2013
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A company is an independent legal entity with rights and powers of its own. S124(1) of the corporations act 2001 (cth) provides that from the date of registration, a company has the full legal capacity of a natural person. Humans are natural persons whereas both humans and companies are legal persons. A company remains a legal person with full legal capacity until it is finally deregistered: s601 ad(1) Proprietary companies: can be formed by one person, membership limited to 50 persons (excluding employees who hold shares) It is prohibited from doing anything that would require lodgement of a disclosure document: must have share capital. Public companies: needs a minimum of one member and 3 directors to be formed, may have unlimited number of members, limited liability company. It may invite the public to subscribe for any shares in the company.
