Question 1:
There are a couple types of business structure in Australia. Businesses in Australia are run by Sole traders, Partnerships, Companies and trading trust. However, each kind of businesses has its own legal rules, purpose and benefits . With organizations the statutory provision is contained in the relevant companies’ legislation . With partnerships the relevant law is contained in the partnership Act in each of the jurisdictions .I will discuss only the partnerships and the companies in term of its business structure, the advantages and disadvantages by conducting business of both types and which one could be preferable to another structure.
Partnership:
Partnership Act illustrates a partnership as an association of individuals carrying
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Partnership is generally straightforward and need low costs to be framed it just require an understanding between the parties. All partners evolve in the administration and making the decision as they all have the right to help in any decision. As they are a number of partners that implies they have a much greater source of funds than a sole trader. On the other hand, the Disadvantages of partnership are that it doesn 't have a legitimate identity of its own. The survival issues, as the partnership will be broken up in light of the death of the partner or regardless of the fact that the partner went insolvency. Endless obligations, where the debts in partnership might be taken generally as it could be taken from their own assets to settle the …show more content…
Bialkower, Richard J. Morgan, 1984, pp. 15-18) mentioned in their book the advantages and disadvantages of Company’s business structure the Advantages Continuity of existence means the company has long life as it stop to exist when it is deregistered. This permit the directors and shareholders continue changes as time passes by. A broad source of fund as the company is generally vast in capital, therefore it is much easier to get funding. The limited liability concept means that the shareholders are constrained to just unpaid (if any) shares of the company and the lenders can 't go to the shareholders or directors personal assets to fulfil the obligation if there has the company went insolvency . From the levy perspective, the company is taxed at a flat rate and the organization is the person who pays the tax. On the other hand, Companies could be extravagant and complicated to framed as tit should be registered with ASIC and send a financial report to it and that is time consuming and costly. By the by, if the business is doing incredible and has development potential, the expenses and disadvantages of the company will be surpassed by the
Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” (Longenecker, Petty, Palich, Hoy, Pg. 202) In a partnership, the advantage for the owners is the capability to reduce the workload and the financial burden, especially if each partner has management skills that enhances the business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen once all other options have been considered.
Corporations functioning within the jurisdiction of the Australian Commonwealth are governed and regulated by the provisions of the Corporations Act, 2001. Common law principles developed through judicial
Capital is a major factor for decision making. Since the business involves a group then the three forms of business exposes the group to a greater capital availability. The liability of members is also an important factor. The partnership offers unlimited liability to the members of the partnership while the corporation and Limited Liability Company allows the members limited liability and thus their personal assets cannot be interfered with in the event of a liability. The decision making process is for the business associations but the input of all members results to the making of good and informed decisions. Finally, the taxation practices for various forms of associations informs the decision. Corporations are often taxed twice whereas the LLC and partnership business is taxed
Australia, commercially would be at an advantage if contract law was codified. The common law system which contracts calls home, can only take on so many avenues and limits itself when stretched to cover new areas. There needs to be a national set of laws governing contracts on the commercial front and in general areas to overcome discrepancies across borders. However there still remains inconsistency with consumers, minors and business trade through contracts made online. The digital economy is not only one of the fastest growing areas but is forever changing and is definitely a prospect that needs to be covered. Effective legal safeguards against undue exploitation and advantage-taking in such online dealings would see Australian contract law remain in the global arena. The Australian public need greater stability and certainty from contract law, and codification is a step towards fulfilling that void by allowing citizens to be well equipped and educated on their rights and decisions.
Public limited companies have advantages that they can expand their organisations into different businesses and conglomerates. This protects the firm from dealing in one market. Ø The organisation can be on the stock exchange and this enables them to offer shares for sale publicly. Due to this PLC's can acquire ready capital for further development if they ar... ...
Below I have set out a table to show the Advantages and Disadvantages of a public limited company. ADVANTAGES DISADVANTAGES Shares offered for sale on the stock exchange, so that large amounts of capital can be generated. Shareholders protected by limited liabilit... ... middle of paper ... ...ibit the already efficient practices from continuing.
And there are some advantages of a public limited company such as there is limited liability for the shareholders which mean the maximum losses that will cause are the amount that the shareholders invested in that company it won’t cause more than that so for the investor the risk is limited. Other than that the public limited company’s potential capital that they can raised is large they can raise fund by selling shares or borrow from bank. Also public limited company is easier to obtain financing because most of the banks and financial institution would like to invest to the larger company just like PLC. PLC have high continuity although the helm of company step down the company can still operating normally because shareholder can transfer their shares to anyone. There are many advantages of PLC but it still have some disadvantages for instance :PLC must make public annual financial report of the company also if the company close the liquidator must be realize the all assets to distribute to all creditors and shareholders. So the owner of Tesco are those people who bought the shares of Tesco. Furthermore, every year Tesco will held the annual general shareholders meeting. Tesco will report the annual accounts, strategic report and directors' report etc. to the shareholders in the meeting. Therefore the shareholders of Tesco can have more information and data to grasp more about
INTRODUCTION Partnership working is a key factor in any organization. A quality partnership in which common goals are shared and communication is done fairly and openly, obviously generate positive results which have as ultimate beneficiary the service users , the organization itself and other categories of professionals involved in the care act. Partnership presumes th • Strengths Key ingredients that lead to a good partnership working must be based on a Good Communication. This must be clear honest and open. In conjunction with multi-disciplinary team is a main key point to ensuring a streamlined approach to care.
Small businesses often feel the brunt of bad deals when it comes to corporate affairs. Unfair terms often result in smaller enterprises getting the short end of the stick. Thankfully, new laws are soon to be implemented in Australia that are geared towards tipping the scales in the favour of the small business. This post hopes to outline some of the main takeaways surrounding these changes to the law.
REFORMS As discussed above we can conclude that the principal of joint enterprise has indeed brought forward quite some injustices however down to the core, its aim is to curb gang-related incidents. The law must always evolve and therefore the criminal division should also reform as well. We cannot rely on the judicial manoeuvres such as the Practice Statement to overrule cases but instead must amend the legislation surrounding it. Recently, there has been a review by the Law Society in September of 2017 regarding the issue raised by the Crown Prosecution Service on secondary liability. It was suggested by the Law Society, that in cases of violence involving groups of people, or gangs, the prosecutor should be cautious not to charge all
There are two types of limited companies: Private and public. Shareholders own private limited companies. Members of the public cannot buy the shares and the shareholders cannot buy or sell their shares without agreement from the other shareholders. Family owned businesses or larger businesses such as Virgin would fit into this category. Public limited companies have shares on the stock market and can be bought and sold by any member of the public, this way the company can raise further capital and expand their resources. Tesco and British Telecom are such examples. Both these types of limited companies have limited liability, which means the owners of the business are only liable for the amount they invested in the business (unless the debt is so large that the business has to be sold to repay the debt).
... organizational structure that needs to be maintained for its operations in Australia. As the suggestion has been of total ownership thus span of control is needed and these factors have been discussed in this report to illustrate how effective the organization can be in Australia.
In company law, registered companies are complicated with the concepts of separate legal personality as the courts do not have a definite rule on when to lift the corporate veil. The concept of ‘Separate legal personality’ is created under the Companies Act 1862 and the significance of this concept is being recognized in the Companies Act 2006 nowadays. In order to avoid personal liability, it assures that individuals are sanctioned to incorporate companies to separate their business and personal affairs. The ‘separate legal personality’ principle was further reaffirmed in the courts through the decision of Salomon v Salomon & Co Ltd. , and it sets the rock in which our company law rests which stated that the legal entity distinct from its
Before a partnership formation is imminent, the business needs to decide on which type of partnership to form. There are three types of partnerships: (1) general partnerships, (2) limited partnerships, and (3) joint ventures. All three partnerships contain two or more owners, but all partners assume equal division of ownership, liabilities, and profits in a general partnership. Limited partnerships offer limited liability protection based on each partner’s contribution percentage. Joint ventures are classified as general partnerships with limited existence periods. Once a type of partnership has been determined, the business fulfills a series of requirements before the partnership can be successfully formed. The first step is to register
According to Corporation Act 2001 s124(1), it illustrates that ‘’A company has the legal capacity and powers of an individual both in and outside the jurisdiction” . As it were, company as a legal individual must be freely with all its capital contribution shall embrace liability for its legal actions and obligations of the company’s shareholders is limited to its investment to the company. This ‘separate legal entity’ principle was established in the case of Salomon v Salomon & Co Ltd [1987] as company was held to have conducted the business as a legal person and separate from its members. It demonstrated that the debt of company is belonged to the company but not to the shareholders. Shareholders have only right to participate in managing but not in sharing the company property. Besides ,the Macaura v Northern Assurance Co Ltd [1925] demonstrates that the distinction between the shareholders and company assets. It means that even Mr Macaura owned almost all the shares in the company, he had no insurable interest in the company’s asset. The other recent case is the Lee v Lee’s Air Farming Ltd [1961] which illustrates that the distinct legal entities between employee ad director allows Mr.Lee function in dual capacities. It resulted that the corporation can contract with the controlling member of the corporation.