Common wealth Government regulates the Australian business law. In Corporation Act 2001 (Cth) the law was mainly codified. The common wealth was found to have less authority in the formation of companies in Australia, Section 51 was only facilitating the foreign companies and providing enough authority, the federal Government create a new law for companies. The corporation Act 2001 is the largest Act in the world, it is the law of common wealth government. The primary purpose of the Act is on companies but some other law related entities like partnership and managed investment. This law is adopted by all the states. Corporation Act 2001(Cth) is the main legislator body in Australia. It deals all the matter of corporation. This Act gives many constitutional forces and allots of other duties on the company director. Violating of duty may led them in trouble and some serious penalties ranging from $220,000.in both comm0on law and Corporation Act 2001 the directors will also be obligatory to pay compensation(www.apla.com).
Types of company in Australia
Sole trader; It is the simplest type of association. Sole trader ship do not require certain formalities only one person can owns the ownership and employ other people in the organisation. Business assets and liabilities have no separate existence from the owner. In Sole trader ship the owner do not pay any corporate taxes, but rather the proprietor pay personal income taxes. In sole trader ship the owner controls the whole business and do not shared the profits with anyone. the only legal requirement for this kind of business is getting Australian business number(ABN) and in some cases registration for material and service tax(GST).If the owner do not want to carry out the business on his owns name the person will only be required to record the name in valid (state or territory) business Act. The owner of the business is responsible for the company losses if the company face any difficulties the owner personal property will be sold to pay all the loans. There is also no legal process which allows another to come into the possessions. The passing away of the proprietor may bring the business to an end (wooddward et al,2005:18).
Partnership; “The relation which exists between two companies or organisations which run the business in common with view of making income. According to partnership Act 1958, partnership is the collection of individual trader who combines for making income point.
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
Australian Legal Case: The Mabo Case The Mabo case commenced in the late 70's about an Aborigine Eddie Mabo who fought for his land on Murray Island, part of the Torres Strait. The issue that started the court case was when Mr Mabo appealed for a permit from the Queensland Government to visit the island. His proposal was declineed so he was unable to return home to visit his homeland.
There are many types businesses in this world; these include Sole trader, Plc, Ltd, Partnership, Co-op and franchise. These types of businesses are all different from each other. Some of them need just one owner, some have hundreds.
True/False - If you buy something on sale it is not covered by the Australian consumer law
The court cited the Universal Partnership Act that defined a partnership as "the association of two or more persons, for the purpose of carrying on as co-owners a business for profit.
In 2001, Australian legislation that sets out laws that govern business entities under both state and federal governments was passed. Implemented as the Corporations Act 2001 (Cth), the Act sets out rules and regulations for the standard that businesses should be operating in Australia, including the creation of new companies and how they conduct their operations.1 The Act is administered under the Australian Securities and Investments Commission (ASIC) who are a government body responsible for implementing corporate laws and holding businesses accountable for their wrongdoings.2 In relation to business ethics, stating that corporate law was designed to enhance this area of business implies that legislators have business ethics as a priority when determining the purpose of new legislation that is being passed. Business ethics is the body of principles that business people ought to follow when behaving in the workplace, as well as the moral attitudes they should adopt.3 By incorporating provisions in the Corporations Act 2001 (Cth) that enable ASIC to deal with those who do not follow
Case Introduction 2 The breach of duties by directors 2 Case Analysis 4 Directors’ duty of care and its scope 4 Test for the breach of care and diligence 4 Impacts on Australian corporation law 5 Conclusion 6 References 6 Case Introduction The aim of this report is to research on the case ASIC v Cassimatis (No. 8) [2016] FCA 1023 involving breach of company directors’ duties under the Corporations Act 2001 (CA).
“An arrangement between two companies or organizations to help each other or work together, to make it easier for each of them to achieve the things they want to achieve: A way of breaking into the market would be to form a strategic partnership with a large player that is already successful in the sector” ("strategic partnership - definition in the Business English Dictionary - Cambridge Dictionaries Online (US)," n.d.).
REFLECTIONS OF TODAY’S CIVIL LAW CODE AS A METHOD OF LEGAL ORGANISATION AND AN ALTERNATIVE TO AUSTRALIAN COMMON LAW XIAO-XIAO KINGHAM INTRODUCTION As society advances with time, Australia’s established common law system could arguably be failing to serve the people as effectively and efficiently as what was once intended. Adaption to present circumstance through assessing the nature, institutes, ideologies, conception and application of law is likely essential to maintain its relevance in the near future. Some have even gone so far as to suggest abandoning common law together and instead replacing it with the widespread and historically ingrained civil law.
Hi everyone. You probably already know what this speech is about because by now you’ve heard it at least 3 times from multiple groups. But we aren’t just telling you old news. We are informing you on your rights as consumers. (Click)
This particular statute allows for corporations and such to obtain several, but not all, constitutional rights as any person or persons. In particularly own property, sue and be sued under criminal and civil law, enter contests. Moreover, because corporations and such are considerate as “person”, business has the legal rights for its debts and damages. On the contrary, persons who are employed by a particular association are liable for their own misconduct and law-breaking while acting on behalf of a corporation. In addition, corporation has rights for its own actions, has rights such as: limited free speech and to advertise their product ("The Rights of Corporations," 2009). Likewise, businesses have the responsibility to elect a CEO, provide continuity; increase profits, social responsibilities, and manages recourses effectively (“Functions & Responsibilities of a Corporation").
There are many different types of business structures, but if you own and operate a business that it is a sole
A Sole Trader is a business that is owned by only 1 person. They are
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.