BLAW20001 Lecture Notes - Lecture 2: Transfer Tax, No Liability, Sole Proprietorship
27 Jul 2018
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Legal person forms contract, owns property, can be sued etc. Unincorporated entities have no legal personality separate from their participants. Individuals who form the company risk their personal assets if the company has unpaid debt. Sole trader: general or limited partnership, trusts and managed investment schemes, clubs. None of these constitute separate legal entities unless they are incorporated into a company. May be formed: by special act of parliament (e. g. ) Asic: by royal charter, under an act of parliament conferring power on some person to create corporations (e. g. ) Li(cid:373)ited o(cid:396) u(cid:374)li(cid:373)ited lia(cid:271)ilit(cid:455) exposed to debt or not. Limits on size: profit or non-profit, ability to raise capital, audit and reporting requirements, tax treatment. Decision must always depend on the individual circumstances of the business. Types of companies: corporations formed under corporations act are companies Some provisions of the act apply only to certain types of companies.
