BLAW20001 Lecture 3: BLAW20001 - Lecture 3 Business-Planning-and-Setting-Up-Companies

• School: University of Melbourne
• Department: Business Law
• Course: BLAW20001
• Professor: All

Document Summary

Choice of form of business: unincorporated entities. Do not aim to make a pro t, if they do must be reinvested. Have no legal personality separate from their members. Cannot hold property in its own name. No limited liability: incorporated entities ( corporations", companies") Separate legal persons: associations can be incorporated under state laws, focus is on companies incorporated under the corporations act 2001 (cth) Partnerships cannot raise equity capital beyond the partners. E. g. splitting income among shareholders requires a company. Can have > 20 members (outsize partnerships prohibited by s 115) A business partnership can be implied - no formalities needed - may cause problems: disadvantages: Usually greater expense in formation and compliance. May have to reveal information to the public: the decision must always depend on the individual circumstances of the business. Piercing the corporate veil": shareholders normally do not have to pay company debts.