australian corporate law

8/18/2019 Australian Corporate Law

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Australian

Corporate LawCorporations Act of 2001 & related laws


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Expectations

• Understand company law and businessentities

• Identify issues relevant to corporationslaw

• esolve t!is issues

• "ecision ma#in$


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%aterials

• Corporations Act of 2001

• Corporations Law In 'rinciple ()t! Ed*+ ,ony Ciro and C!ristop!er -ymes (200)*+ ,!omson euters Australia Ltd.+ /-

• Case law


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%et!od of teac!in$

• Class discussions• ecitations

• Lectures

• Individual and roup esearc! paper

• Assi$nments

• Class presentation

• ui33es


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4our $rades

• Assi$nment 5 607

• %id8semester test 5 107

•

9inal Examination 5 :07


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;ow to answer essay


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;ouse ules

• /o eatin$

• /o sleepin$

•

/o9aceboo#>insta$ram>youtube>websur?n$

• %aximum of two absences

• 1@ minute rule

• Always come to class prepared.

9ailure to prepare is preparin$ to fail.


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'reliminaries

• !at is a corporationB

A corporation is an arti?cial bein$created by operation of law+ !avin$ t!eri$!t of succession and t!e powers+attributes and properties expressly

aut!ori3ed by law or incident to itsexistence.


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Corporate law t!eories

• Concession t!eory

A corporation is an arti?cial bein$ created by operation of law.

•Contract t!eory

Incorporation is deemed to involve contracts amon$ t!e members+between t!e members and corporation+ and between t!emembers of t!e corporation and t!e -tate.

• 9ranc!ise

A corporation is $ranted by t!e -tate t!e ri$!t to exist by virtue ofa primary franc!ise.

9ranc!ise 5 is a special privile$e conferred by $overnmentalaut!ority+ and w!ic! does not belon$ to citi3ens of a country


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Can you trace t!e ori$in of

corporationsBoman Law

• 'opulus romanus

•

-enatus popolus


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• oot word 5 corpus w!ic! means body.

A corporation is a body of individuals aut!ori3ed to act asan individual.

• ,!e cities were t!e ?rst corporations.

• Corporations arose out of necessity in a oman setup.• ,!e epublic relied !eavily on t!e services of private contractors

to construct temples+ build a


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• ,ax collection• 9utures tradin$ 5 most of t!ese publicani would

buy future taxes and poc#eted w!atever t!ey

would collect.

• oman Cat!olic C!urc!• Initially as c!aritable institutions.

•

Later it !as formed Doint ventures.• %onasteries

• Universities

• eli$ious and public functions.


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• 1:00s 5 c!allen$e of t!e "utc! andEn$lis! merc!an$s

• entures from Europe

• %erc!ants needed investments

• ise of t!e uilds•

Enforce monopoly• E


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• %ississippi sc!eme (9renc!* and -out! -ea Fubble (En$lis!*• 'ublicly owned $overnment debt (for war expenses of t!e 9renc!

and En$lis! overnments* would be exc!an$ed for stoc# in somecorporation.

•

,!ey ta#e control and lower down interest expenses.• EGect to restrict t!e formation of new corporations

• %onopolies wit! -tate 9iat 8 t!e state would c!arter acorporation as it deemed wort!y.

• Hpportunity of buyin$ s!ell corporations.

• -olution incorporation by re$istration.• %ade easy for businessmen to form corporations and raise capital.


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!at is t!e purpose of

corporation lawBIn $eneral+• "e?ne t!e area wit!in w!ic! t!e parties are free to allocate ris#+control and pro?t

• 'rescribe t!e allocation of t!ese elements in t!e absence of expressa$reement.

In particular+

• Corporation law provide t!e rules for t!e formation and or$ani3ation ofcorporations

• "e?ne t!eir powers

• 9ix t!e duties of directors and ot!er ocers• "eclare t!e ri$!t and obli$ation of s!are!olders

• 'rescribe under w!ic! corporations may transact business

• e$ulate t!e relations between and amon$ stoc#!olders+ ocers andcreditors.


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• !y do merc!ants or$ani3e acorporationB !at is t!eir purposeB

• Can you cite a le$al ri$!t t!at you mayuse as basis for or$ani3in$ a corporationBExplain.


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Australia Corporations Law

• Corporations Act of 2001

• Australian -ecurities and InvestmentsCommission Act of 2001


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're81))1

• Administration of AU Company law !as been complicated byAustraliaJs political system.

• /ew -out! ales v. Commonwealt! (1))0*•

!et!er t!e commonwealt! !as t!e power to prescribe laws for t!eformation of corporations.

• t!e corporations power was con?ned to ma#in$ laws wit! respect tocompanies t!at !ad commenced tradin$ and could not be interpreted soas to support laws providin$ for t!e formation of companies.

•

9ormed• "The Parliament shall, subject to this Constitution, have power to make

laws for the peace, order, and good government of the Commonwealthwith respect to...(xx foreign corporations, and trading or !nancialcorporations formed within the limits of the Commonwealth...

• t!e section was meant to apply to already formed companies


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Alice -prin$s A$reement

• Eac! -tate and t!e /ort!ern ,erritorya$reed to adopt t!e Commonwealt!le$islation by passin$ an Application Act.

• Australian -ecurities and InvestmentsCommission (A-IC*


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're82001

• ,!e Constitution $ives t!eCommonwealt! $overnment a limitedpower to ma#e laws wit! respect to

formation of corporations and tradin$ or?nancial corporations formed wit!in t!elimits of t!e Commonwealt!.

• ,!e power to le$islate for t!e re$istration

(formation* of corporations belon$ to t!e-tates.

• Eac! -tate passed and administered itsown companies act.


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• C!allen$e in terms of raisin$ funds and conductof business on a national scale.

• ea#im ex parte %c/ally Fond v v;u$!es.

• ,!e cross8vestin$ le$islation+ under w!ic! -tate Durisdiction to !ear corporate law matters !ad beenconferred on federal courts+ was unconstitutional.

• Even t!ou$! t!e -tates !ad a$reed to t!e sc!eme+under t!e Commonwealt! Constitution+ t!e -tates!ad no power to pass t!e le$islation.


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eferral of powers to t!eCommonwealt! Muly 2001

• Eac! -tate passed a le$islation referrin$t!e followin$ powers to t!eCommonwealt! parliament

• ,!e power to ma#e laws in respect ofcorporations and

• ,!e power to ma#e amendments to t!oselaws.


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Australian -ecurities andInvestment Commission• %ain powers

• Enforcements 5 ta#es civil actions

• -urveillance 5 compliance

• Investi$ation

• 'rovision of advise about law reform

• Compilation+ stora$e and dissemination of corporateinformation

• e$ulation of companies+ and t!e ?nancial services industry

• Education

• %onitorin$ and promotin$ mar#et inte$rity and consumerprotection in relation to t!e Australian ?nancial system+ t!eprovision of ?nancial services and t!e payments system.

australian corporate law

Documents