Law of Business Organization Productivity Commission

Question: Discuss about the Law of Business Organization for Productivity Commission. Answer: When a company has to get registered, the person planned for the registration must primarily apply with the ASIC. The ASIC is one of the most important key and rather aspect when a new business is going to take its form. The ASIC is the unique number provided to the applicant so that they can protect their business from violation of privacy and it also helps to protect some important business news (Rahman 2013). The explanation of the ASIC is mentioned under the section of 117 of the corporation act. After the registration under Sec 117 of the Act, the question comes in about the formation and type of business set up as mentioned under Sec 112. So, in this matter, the type of company: Proprietary Limited Company. The next factor explained here is the limited form of company mainly limited by the shares explained under 601CW of the corporation act which can be summed up as: The mentioned section applies to the registered body subjecting to the Subclause(2). When the registrable body is same as the Australian registrable body, then the application of the section will have no validity concerning to the place of origin. Clause 9- all the other body except the Australian ADI, there must be an affix of the name in front of the corporating outlet whether in the painted form or in any other form which is legible to all. The name of the company is compulsory to have the display in front of all other corporating offices including the registered office. Along with the other mentioned criteria, the company must also put the suffix sign of Limited or Ltd. And proprietary or pty. The actual liability of the entity must be well understood to the newly registered organizations (australia.gov.au 2016). The next step that follows after the determination of the type of company is done concerning the sec 117(2) in this Act. In this step, the following things must cover up to complete the registration: The new business entity must indicate the liability of all the person within the corporation: The set up of the company to mentioned in suffix form, Suggestive names of the company (not registered under the name of business), Names must be in such form to get the sanction from ASIC since it will not approve the name of any corporation existing in the era of business, The consent of the members involved with such entity since it is mandatory to keep a record of all the valid consents. The consent must be made from the following persons: The director of the registered company expected to be over the age of 18 years. All the members of the company acting with the present set up. The necessity of the consent from the from the secretary is not neede for the proprietary form of the business. Once the step gets over with undertaking of the valid consents from the part of the company, the fulfillment of the registration comes in after the following details provided: The registration of the application must contain the following: details of the applicant: Name: Company name: Position: Address (residential and proposed registered office): Contact details ( residential and official): Details of the company: Company name (proposed in preference): Suffixed name: State of incorporation: Registered address of office: Business address: Superannuation acting trustee: Seal: Company presentation: Seal: Bank kit: Verification made prior that the same name is not registered elsewhere: Actual role of the applicant whether he will act as an agent or with the compliance of the ASIC: Shareholder: Type: Name: A.C.N or A.B.N.: Address: Personal details: Position in the company: number of shares: Whether beneficially owned or trustee: The pattern to be followed for all the other shareholders and must have a record of such submission. Apart from that any additional notes: Next step is to deal with the payment: General fees are $738 GST: Pattern of payment: After the completion of the registration, some internal procedures governing constitution constructed which includes the procedure for governing the same. The clause of the internal management is mentioned under section 134 of the corporation act (legislation.gov.au 2016). There are replaceable rules as mentioned under the sec of 135 of the act which is essential for the include in the making of the constitution and the members are expected to work with the concern to the mentioned regulations. Although it is not mandatory for the proprietary company to form a constitution, yet it is advisable for the same so that the effective regulation of the members can get maintained and the directors can work with good faith. Constitutions are mainly based on the redeemable with the option of the shareholders (Anderson et al. 2015). The legal authority of the members ensures that the company was acting in the good faith with all the important necessity. Sec 124 defines about the legal capacity that the members or the directors acting get the control to carry on with some activities for which may not need any forum and the act based on the situation. This section has a critical role in the formation of the business (Bakan 2012). It is paramount for the members acting members since such legal authority given the concern of the situation as well as for the purpose of the security policy (abr.gov.au 2016). Sec 129(1): the essential of the company constitution with the replaceable rules compiled together is mandatory since there must be scope for the amendment made as there are some of the situation which may not comply with the situation that takes place in the business. The combining of the replaceable rules with the actual constitutions helps the company to make the essential changes during the time of the situation when such changes become an absolute necessity (austlii.edu.au 2016). Section 588(M) (3): the clause arises some necessity to the act after the introduction of this section. Here there is an explanation of the creditor who is not liable to get the damage in means of compensation from the directors of the company. The creditors are also known as the investors of the company. Hence, they are liable to get the compensation to the loss occurred to them due to the insolvency of the company as mentioned under the subdivision B. Concerning the section of the act, and the amount is equal to the amount of loss occurred (Dobson 2014). Also, the liquidator of the company is also liable for the compensation provided that the director has been proved for his insolvency (Wright 2014). So, all the three sections mentioned here hold a major role in the carrying out of the business. References: Abr.gov.au. 2016. For Business, Super funds Charities | Australian Business Register. [online] Available at: https://abr.gov.au/For-Business,-Super-funds---Charities/ [Accessed 23 May 2016]. Anderson, C., Howell, N. and Mason, R.F., 2015. Submission to the Productivity Commission issues paper business set-Up, transfer and closure. Asic.gov.au. 2016. Lodging paper forms | ASIC - Australian Securities and Investments Commission. [online] Available at: https://asic.gov.au/online-services/lodging-paper-forms/ [Accessed 23 May 2016]. Austlii.edu.au. 2016. CORPORATIONS ACT 2001 - SECT 129Assumptions that can be made under section 128. [online] Available at: https://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s129.html [Accessed 23 May 2016]. Australia.gov.au. 2016. ABN, ACN, business management | australia.gov.au. [online] Available at: https://www.australia.gov.au/information-and-services/business-and-industry/abn-acn-business-management [Accessed 23 May 2016]. Bakan, J., 2012.The corporation: The pathological pursuit of profit and power. Hachette UK. Dobson, R., 2014. Liquidation Winding up a company.Busidate,22(4), p.5. Human, S.E., Clark, T., Baucus, M.S. and Eustis, A.C.S., 2015. Idea or Prime Opportunity? A Framework for Evaluating Business Ideas for New and Small Ventures.Journal of Small Business Strategy,15(1), pp.59-80. Legislation.gov.au. 2016. Corporations Act 2001. [online] Available at: https://www.legislation.gov.au/Details/C2014C00519 [Accessed 23 May 2016]. Rahman, A.R., 2013.The Australian Accounting Standards Review Board (RLE Accounting): The Establishment of Its Participative Review Process. Routledge. Wright, C.J., 2014.A critical enquiry into the need for avoidance provisions in business rescue proceedings.