Private Company Case Study

801 Words4 Pages
PART – A Partnership: Partnership is a relation which occurs between persons carrying on a business with view of a profit. So it is basically persons combining together to form a business with the intention of profit. Trust: A trust is a responsibility on a person (trustee), when the legal owner of the certain possessions to deal with the possessions for the advantage of the beneficiary. Trust is mostly developed by a deed or by a formal document. Companies: A company is an incorporated body. We have to register company in Australian Securities and Investments commission (ASIC) called incorporation. Companies are of two types’ proprietary companies and public companies . A proprietary company is a small company it is registered under the corporations act. A company other than proprietary company is public company; they can issue and buy shares from the public. The public company should be registered on the Australian Securities Exchange, but not all the public companies must be listed. The different types of public companies are as follows Types of Public Companies: • Limited by shares • Limited by Guarantee • Unlimited with share capital • No liability Company As from the question it is clearly evicted that Steve and wonder together they have only $500000 to start business. And they need $1million to purchase the document and they get $500000 from bank and they need other $500000. They would also like to keep their affairs private and confidential. For the remaining $500000 better they have to issue shares from the public. In this we have to use public company instead of proprietary company because in proprietary company we can’t raise fund from the public So I recommend they have to start public company ‘limited by shares’ an... ... middle of paper ... ...he Royal British Bank. The bond was under the company’s common seal signed by the two directors’ and the secretary. When the company sued it alleged that the director’s only had power to borrow had been according to the company’s proposal. But the judgement said that it was valid the Royal bank could enforce the terms of bond. The bond was valid because there was no requirement to look into the company’s internal affairs. In that case the Royal Bank won the case. In the Steve and wonders case appointment of company secretary in the contract is internal affairs of the firm. The contract by the wonder is valid as he is one of the apparent agent of the company. Steve also has the responsibility to repay the loan back to the bank. REFERENCE Fitzpatrick, J. F., Symes, C. F., Veljanovski, A., & Parker, D. (2011). Business and Corporations Law: LexisNexis Butterworths.
Open Document