Corporation Law for Australian Securities- MyAssignmenthelp.com

Question: Discuss about theCorporation Law: Australian Securities and Investments. Answer: No liability companies come under public companies and are mentioned in section 112 of the Corporations Act 2001 (Cth). Hence a no liability company can be termed to be so if it has its own share capital. The company must have its own constitution which will contain the main objectives of the company. As per the constitution of the company, it will not have any right to contract with regards to recovering calls made pertaining to the shares which are not paid by the shareholders (Austlii.edu.au, 2017). As per the rules those companies who engage in mining activities can only be registered as no liability companies. The no liability company has to be registered as per the requirements of section 117 of the Corporations Act 2001 (Cth). Under sub section 1, the person intending to register the company has to lodge an application with the Australian Securities and Investments Commission (ASIC). A no liability company comes under the categories of companies as mentioned in section 112 of the Act. The sub section 2 of section 117 will contain the aspects of the application (Austlii.edu.au, 2017). Initially the type of company that is to be registered is to be specified. Then the proposed name of the company or the Australian Company Number has to be mentioned. It will be followed by names and address of the proposed members. It will include details of directors and company secretary of the company. It is important that the address of the proposed registered office of the company is mentioned. Since the no liability company is a public company the possible opening hours of the registered office has to be mentioned. Sub section 3 of the same section speaks about a public company that is to be registered. The company needs to have its own constitution. The applicant has to provide a copy of the constitution along with the constitution. The application form should cover all the agreements and consents. Once the registration process is completed, the consents and the agreements have to be handed over to the company by the applicant. Section 134 of the Corporations Act 2001 (Cth) speaks about the companys internal governance and management. Thus the internal management of the company can be followed as per the provisions of the concerned Act (Austlii.edu.au, 2017). The internal management can be in the form of replaceable rules, constitution or both combined. The company may also follow the other rules regarding internal management which is treated as common law. Section 135 of the Corporations Act 2001 (Cth) speaks about the replaceable rules of the company. As per the provision, a company may incorporate a replaceable rule within its constitution which is usually not applicable. It also says that the replaceable rules can be removed or modified by the constitution (Austlii.edu.au, 2017). As per section 254A (2) of the Corporations Act 2001 (Cth), a company can issue preference shares if rights pertaining to such issue is mentioned in the constitution of the company or through special resolution. These rights may be with respect to payment of the capital to the shareholders (Austlii.edu.au, 2017). The rights may be with respect to right of the shareholders with respect to profits and assets in surplus. The rights should also be pertaining to dividends that are cumulative and non cumulative. The rights are in relation to voting of the preference shares. Finally it is with respect to prioritising payment of capital and dividend with respect to other class of preference shares. Subsection 3 speaks about redeemable preference shares. These shares are issued on the conditioned that they can be bought back or redeemed. Thus these shares can be redeemed at the option of the company or the shareholder. They can also be redeemed when a period of time ends or an event occurs. References Austlii.edu.au. (2017).CORPORATIONS ACT 2001 - SECT 112. [online] Available at: https://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s112.html [Accessed 21 May 2017]. Austlii.edu.au. (2017).CORPORATIONS ACT 2001 - SECT 117. [online] Available at: https://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s117.html [Accessed 20 May 2017]. Austlii.edu.au. (2017).CORPORATIONS ACT 2001 - SECT 134. [online] Available at: https://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s134.html [Accessed 20 May 2017]. Austlii.edu.au. (2017).CORPORATIONS ACT 2001 - SECT 135. [online] Available at: https://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s135.html [Accessed 21 May 2017]. Austlii.edu.au. (2017).CORPORATIONS ACT 2001 - SECT 254A. [online] Available at: https://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s254a.html [Accessed 20 May 2017].