Securities Act And Companies Law : Australia And Its Corporate Entities

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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…show more content…
Secretaries and directors are such people. According to the section nine of the Corporations Act 2001 the definition of a director is as follows: a) a director is one who is appointed for the post of the director. b) A person who is appointed as a substitute director plus who is performing the role of the director which is done irrespective of the name or position assigned to that person in that company. (Commonwealth Consolidated Acts, 2015). In section 120 of the Corporations Act 2001 it is mentioned that whenever a company is formed and its registration is going on any individual can become a member or director or the secretary of the company provided that in the application form their name is mentioned with their consent of working as a part of that company. The shares distributed to the members of the company can also be decided at the time of registration and is mentioned in the application itself. (Commonwealth Consolidated Acts, 2015a). Appointment At the time of incorporating the company officers are assigned. But whenever there is a need for appointing a new officer, it can be done with the permission of the existing officers of the company. And also a written application in the form of consent is to be given to the new officer. A person who is newly appointed can also act as a secretary
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