Business Law of a Company

Questions: 1. Register a proprietary limited co. You should refer to section 117 of the corp. act, complete an application form and and prepare all relevant consents NB section 117(2). You must also create a share register NB sections 167, 168 and 169. 2. Research then explainthe reason and justificationfor the following sections of the corp act :- section124; section 129(1) and section588M(3). Your analysis of each section is worth 5%. Answers: (1). Constitution of XYZ Pty Company 1. This Constitution of the Company declares the name of the Company as XYZ Pty Company. 2. Its directors named XYZ represent the Company. 3. The primary or basic objective of this Company is indulged itself in dealing with production and selling of matters of electronics. 4. This Constitution in accordance with Section 134 of the Corporations Act of 2001provides expressly the methods of management of those affairs of this Company that are internal. This Constitution provides expressly that the internal management of the Company shall be administered by the provision of Section 134 of the said Act. Section 134 declares that the rules that are related to the management of a company shall be regarded as the replaceable rules. It is provided in the Corporations Act of 2001 that any Company is either governed by the constitution or the replaceable rules or by both. The date at which the Company is going to get registered is 20th May 2016. The rules regarding the replaceable rules are given in Section 135 of the Corporations Act of 2001. This Constitution possesses the powers to make the modification in the rules that are replaceable. 5. The power to make the issue of shares that is the either the bonus shares or preference shares, partly-paid shares or the redeemable preference shares are dealt in section 254A of the Corporations Act of 2001. This Constitution expressly provides that the issue of the redeemable preference shares attaches the rights of the share holders in getting the priority during capital repayment. The Company also through this Constitution declares the issue of the redeemable shares that are entitled to get redeemed on the happening of any specified terms: 6. Any specified event 7. Option of the Company 8. Shareholders will (2). In section 124 of the Corporations Act of 2011, there is the express declaration of the capacity of any Company in the legal sense of the term. In Subsection (1) of Section 124, there is an express declaration that any corporation or company enjoys the similar powers or capacities in the legal terms that are enjoyed in the normal circumstances in any jurisdiction. The same section also makes the declaration that any company possess those powers that are enjoyed by a body corporate (Abeysekera 2013). Those powers are to facilitate in the issue of the shares and making the cancellation of any shares. The second power is to take any decision regarding the factor of issue of unused shares. The third power is to get indulge in making the process of the issue of the redeemable or irredeemable shares. The next power is to arrange the security granting about those properties that are circulating. The next power is to arrange the security granting for the interest of any capital that is uncal led. The next powers of a body corporate, as stated in the said section, is to make the arrangement for the registration of such corporate body in any areas whether outside the territory of the company. The last power of a body corporate is to make the arrange of the performance of any activity or any function that is necessary by the law of any other country where the company was having its operation. It has also been provided in the same section that any company that is limited by guarantee possess no power to make the issue of the shares (Arku 2013). In subsection (2) of Section 124, there is an express stipulation of the fact that the matters that are related to the interest fulfilment of the company do not affect the legal capacity of a company. In Subsection (3) of Section 124 of the Corporations Act 2001, clearly puts the bar on the activities of any company that is prohibited by the law of any territory or state. The same section also makes the prohibition for any company to make the exercise of any right that is expressly denied by any law of the territory or state (Bae Choi et al. 2013). There is a strong interrelation between the sections 128 and 129 of the Corporations Act of 2001. In section 128, there is a right that is possessed by any company that it has the power of making many assumptions (Gruenewald and Smith 2014). In section 129, there is an express declaration regarding the express declaration regarding the assumptions that are to be made by a company. In the subsection of Section 129, there is the declaration that any company can make the assumption the laws of the Corporations Act 2001, the Constitution of the Company and the replaceable rules apply to a corporation or company (Baumfield 2014). The methods by which the amount of compensation is recovered in cases of loss are declared by the Section 588M of the Corporations Act of 2001. The said loss is as a result of the insolvent trading by any company. In subsection (1) of Section 588M, it is provided that the section makes its application only in certain conditions or situations (Campbell et al. 2013). Such situations are where a director of any corporation has made the contravention of subsection (2) of the Section 588G in relation with the debts incurred by any company. The second situation is that where any creditor that is owing some debt from any company has lead to a suffering of any loss or damage (Choi et al. 2016). The third situation is when any debt that is secured by any creditor at those time when the company is getting insolvent. The fourth situation it is that when the winding procedure of any company takes place. The last situation is that when there is any civil penalty is imposed on the part of any dire ctor (De Bakker et al. 2013). Reference List Abeysekera, I., 2013. A template for integrated reporting.Journal of Intellectual Capital,14(2), pp.227-245. Arku, G., 2013. Outsourcing functions to economic development corporations: Exploring the perceptions of officials in Ontario, Canada.Public Organization Review,13(1), pp.49-70. Bae Choi, B., Lee, D. and Psaros, J., 2013. An analysis of Australian company carbon emission disclosures.Pacific Accounting Review,25(1), pp.58-79. Baumfield, V.S., 2014. 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