Busl301

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Topics considered:

• Business Purpose • Structure & Legal Nature of Companies • ASIC

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Separate legal entity created by registration. Other vehicles to conduct business: sole trader and partnership. Companies are the most popular form to conduct business. There are different types of companies. Not all listed on ASX namely: Co limited by shares; Co limited by

guarantee; No liability co and Unlimited liability co.

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Must have at least 1 member The capital structure: Funded by equity, debt or retained profits The management structure: The company is managed by officers, who are headed by directors. Members can make some decisions, but normally not management decisions. The company secretary plays an administrative role.

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Incorporation by Royal Charter-gains

status from the crown through petitioning the monarch.e.g Institute of Chartered Accountants and Royal College of Surgeons are examples.

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17th Century - Joint stock companies-were types of corporations or

partnerships involving two or more individuals that own shares of stock in the company. Certificates of ownership ("shares") are issued by the company in return for each financial contribution, and the shareholders are free to transfer their ownership interest at any time by selling their shareholding to others.

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Inadequate legislation: The Bubbles Act 1719-an attempt to prevent

smaller non-charter from forming and so reduce the importance of Parliament in regulating businesses; or that the South Sea Company. itself wanted to prevent other bubbles from forming that might have decreased the intensity of its own.

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First corporations Act 1844 (England)-that expanded

access to the incorporation by registration. Before the Act, incorporation was possible only by royal charter or private act and was limited owing to Parliament's jealous protection of the privileges and advantages thereby granted.

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1855: introduction of...