BLAW20001 Lecture Notes - Lecture 1: Sole Proprietorship, Dominate, Salomon V A Salomon & Co Ltd
27 Jul 2018
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Document Summary
General term used to describe the legal rules governing: Formation and termination of companies: characteristics of companies (e. g. ) how they operate, relationships between participants in companies (e. g. ) directors, officers, shareholders, creditors, companies" dealings with outsiders. Investor protection: commercial stability and consumer confidence, balancing competing interests, certai(cid:374)ty sta(cid:374)dard for(cid:373) rules. Sources of rules: corporations act 2001, case la(cid:449) pre(cid:272)ede(cid:374)ts, other sources, corporations regulations, asic act, asic exemptions, accounting standards, asx listing rules (for listed companies, use cases and legislations to support answers. Public law: civil disputes between two legal persons (e. g. ) shareholders vs the company (e. g. ) outsider suing company for negligence, allows asic to punish wrongdoers and seek compensation, criminal disputes (e. g. ) fines for insider trading. Capital structure: companies are separate legal entities, hence they need funds from, two sources of funds, equity capital, debt capital. Equity capital: money invested by members (shareholders, by subscribing for shares (e. g. ) public company, by acquiring shares from existing shareholder (e. g. ) propriety company.
