The Importance of Company Law in Australia: Exploring Legal

Sandar Win 45748022 TUTl 1 Tutor Weinert, Kim Tutorial 1 1.The first pieces of information that caught my interest in the lecture was "what is company and how important are companies in Australia? "The company is an artificial legal person create law which hold property and carry-on business with a separate form of participants. On the lecture side 6 there is a two-pie chart showing Number of company and net tax. In the number of company section, the majority is made up of SME and only 0.1% was large enterprise. However, in tax pay section, the 61.4% of the economy taxpayer was made of those very larger enterprise. Another interesting sector was company law. The corporation Act 2001 is the main law statue of Australia company which was in force since 2001. 2. The company is form through the process of registration and de-registered to end the company existence. The applications are carried to the Australia securities and investment commission (ASIC). The shares of larger company with billions of dollars in asset and numerous shareholders are quoted on the Australia Securities exchange (ASX). Therefore, the investor can buy and sold of company shares. 3.The three characteristics of corporations - separate legal personality, corporate capacity and limited liability. The main key point for the separate legal is the rights and liabilities are separate from its members and managers. Corporate capacity is the company has the power of a body corporate including issuing and cancelling the share in the firm, issue debentures and distribute among the member any of the property owned by the company and etc. Limited liability is investors are liability to the limited amount which they agreed to invest in the company, taking Salomon v Salomon case as an example, Mr Salomon convert his sole trader business to company, the main reason was to obtain limited liabilities and his personal position will not be at risk if the business fail. His case shows that both large and small business can be limited company. 4. I believe company law is essential as it protect every player in the organisation. It set out rules and regulations for the businesses and operation of the companies. It provides balancing competing interest to both shareholder and director. This area can include - Mergers and acquisitions, partnership, and shareholder right etc. As a student studying business major, I am likely to work in a corporation or entrepreneurship in near future, it is fundamental to know the company law to manage the business more efficiently, maximum profit and limited risk.