Securities Act And Companies Law : Australia And Its Corporate Entities

2576 Words Jun 4th, 2015 11 Pages
Securities Act and Companies Law
Australia and its Corporate Entities
In Australia we can mainly see two kinds of corporate entities. They are namely first, the public limited company and second, the private limited company or otherwise called proprietary company. In a private limited or proprietary company there is a limitation in the liability which is controlled by the share. Or else there is an unlimited liability but that exists with the share capital. In a private company the number of directors and shareholders are limited. Like one director is allowed with one shareholder. The number of non-employee shareholders is limited to a maximum of 50. A private companycan be of two types, a small one and a large one. This differentiation is done on the basis of various parameters like size and income of the company. (Brown, 2013). It is not necessary for a proprietary company to have a secretary. If it does then it is compulsory to have at least one secretary from Australia. (sec204A (1) of the Corporations Act 2001).If we talk about public company we can see that the limited liability is being limited either by guarantee or shares and limitless liability either with share capital or with no liability. In case of a public company the number of shareholders has no restriction. On There is no restriction on the number of shareholders for a public company. At the end of a company name the word limited or ltd is used in order to indicate that it’s a public company.
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