BLO 2205 Final: Corporate Law BLO2205
Document Summary
A company is any company registered under s 9 ca. S124(1) the company is a separate legal entity can own property, enter into contracts, commit torts and conduct business operations. Shareholder liability is limited to the capital they have contributed (s516) A company may be a parent company if they own shares in another company. When a company falls insolvent a liquidator is appointed to control the company with a view to maximizing the assets of the company in favor of creditors. Alternatively the company my be put into administration. The business judgment rule has been introduced to protect directors from honest decisions which turn out to be wrong. Ss198e(1: they can however make offers to existing shareholders and personal offers under s708, a proprietary company may convert to a public company under s165, by passing a special resolution and lodging an application with asic.
