Introduction to Corporation

Question 1

What is Corporations Law?

Answer 1

• Body of legal principles governing the formation operation and dissolution of companies along w the regulation of corporate conduct

Question 2

What is a company?

Answer 2

A registered company under the Corporations Act 2001

Question 3

What are different types of Corporate Entities that is NOT a company?

Answer 3

• Incorporated Entities
• Unincorporated Entities
• Registered Organisations

Question 4

What are the Incorporated Entities?

Answer 4

Co-operatives
Chartered Corporations
Incorporated Associations
Aboriginal and Torres Strait Islander Corporations

Question 5

What are the Unincorporated Entities?

Answer 5

1. Partnerships
2. Trusts

Question 6

Difference between Unincorporated and Incorporated Entities?

Answer 6

Unincorporated is the SAME as its owners

Incorporated means entity is SEPARATE from owners

Question 6

What is an example of a Registered Organisation?

Answer 6

Trade Unions

Question 7

What are the 4 key corporate regulators?

Answer 7

ASIC
ASX
APRA - aimed at ensuring financial stability
Takeovers Panel - takeover disputes

Question 8

What are the 2 Types of Companies?

Answer 8

1. Proprietary Companies
2. Public Companies

Question 9

What is a restriction on Proprietary Companies?

Answer 9

Must be less than 50 shareholders

Question 10

What are the 2 features on Proprietary Companies?

Answer 10

1. Limited by Shares
2. Unlimited w share capital (high liability)

Question 11

What are 4 features on Public Companies?

Answer 11

1. Limited by shares
2. Limited by guarantees –> comprised of only members NOT shareholders
3. Unlimited w share capital
4. No liability Company –> even if company goes bankrupt, shareholders do NOT pay debt

Question 13

What are the 3 main theories for Corporations?

Answer 13

1. Concession Theory
2. Contract Theory
3. Organic Theory