Company_Law_Summary

Company_Law_Summary - Company Law Summary Definition of a...

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Unformatted text preview: Company Law Summary Definition of a company – An artificial entity recognised by the law as a legal person with rights and liabilities. It is regarded as an entity that is separate and distinct from its owners (shareholders/members) and managers (directors/officers). Proprietary Companies – Small companies that operate small-scale businesses subject to minimum financial disclosure requirements. Public Companies – Permittied to raise capital from the public To listed on the ASX must have more than 400 shareholders Must also have either prescribed minimum amount of tanglible asset or operating a profitable business. Detailed disclosure obligations through both ASX lisiting rules and Corporations Act Active stock market enables investors to easily trade in listed shares therefore allowing high capital to be raised Limited Liability Gives investor limit liability when investing in companies which reduced the risk of loss to the amount investment. Liquidity of being able to sell their interests in a company freely and transparent ASIC Main Commonwealth body responsible for administering the Corporations Act 2001 Body corporate with between 3 & 8 government-appointed members. Ultimately responsible to the Commonwealth Treasurer and therefore Parliament. Objectives of ASIC Functions of ASIC Monitoring and promoting market integrity and consumer protection: In the Australian Financial System Insurance & Superannuation Products Financial Advising Licensees Part 7.2 of Corporations Act operators of financial markets must be licensed by ASIC Power to enforce listing rules of financial markets under s793C and s794D Part 7.6 financial service providers must be licensed by ASIC S741 gives ASIC wide power to grant exemptions in relation to the fundraising provisions. ASX Main stock market in Australia Public Company Listed on its own exchange Seeks to promote: • Fair and well-informed market for financial securities • An internationally competitive market Responsibilities – Notes by All Things Law – http://law.timdavis.com.au- A Law Forum to discuss everything about Studying Law - from Law Subjects, Notes and Questions to Law Clerkships and Jobs. Corporate Law Economic Reform Program Act 2004 (CLERP 9) Aimed to enhance audit regulation and the general corporate disclosure framework. Amendents mainly to: • Auditor independence requirements • Strengthened obligations of auditors to report breaches of the law to ASIC • Enhanced enforcement mechanisms in relation to continuous disclosure and the imposition of a duty on analysts to manage conflicts of interest Notes by All Things Law – http://law.timdavis.com.au- A Law Forum to discuss everything about Studying Law - from Law Subjects, Notes and Questions to Law Clerkships and Jobs. Characteristics of a Company Companies are abstract, artificial entities recognised by the law as legal persons with rights and liabilities separate from their shareholders or members....
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This note was uploaded on 09/21/2011 for the course CMA 203 taught by Professor Simonmorris during the Three '10 term at Charles Darwin.

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Company_Law_Summary - Company Law Summary Definition of a...

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