Company Law
Question2 (P47):
Facts:
Mary is the owner of a successful business selling women’s shoes. She seeks advice from her accountant to expand her business. Susan, the accountant, tells Mary that she has several options.
Issue:
• Recommendation for Mary, and influences to the advice.
• Whether a public entity is the most appropriate entity for her mining venture.
• Should Susan incorporate? If so, should she adopt a company structure?
• Assuming Susan adopts a company structure, what type of Liability Company should Susan adopt?
Relevant Laws:
Form of association:
• Consider the possible form of association, corporate and non-corporate
• Consider comparative advantages and disadvantages of each form of association in the light of facts given.
• Remember that there can be many relevant factors, not all of them related to corporate law issues. Taxation stamp duty and human factors can also be important.
Application
In this case, Mary as Sole trader, she wants to expand her business with a more appropriate structure. As a sole trader, Mary has unlimited type of liability. Beside, to transfer the ability of interest, it would be difficult for Mary because she needs new contracts with creditor. Thus, it appears that depend factors such as creditor or public, Mary might meet the difficulty to expand her business. Furthermore, Mary also can have advantages about loan and can employ others to help her as a sole trader.
As for Susan, she would incorporate as partnership with Mary, can be written or oral and express or implied. As a partnership, she can adopt a company structure depend on the expansion of Mary’s company. Base on the current market, Susan can adopt many different type of Liability Company. For example, company limited by share or unlimited.
Question2 (P63)
Facts:
Scenario: Marcia does not register her company until she is over 18. She wants her company called “Marcia’s Guaranteed Sparkle Pty Ltd”.
Issue:
• Will Marcia be able to
Facts:
Mary is the owner of a successful business selling women’s shoes. She seeks advice from her accountant to expand her business. Susan, the accountant, tells Mary that she has several options.
Issue:
• Recommendation for Mary, and influences to the advice.
• Whether a public entity is the most appropriate entity for her mining venture.
• Should Susan incorporate? If so, should she adopt a company structure?
• Assuming Susan adopts a company structure, what type of Liability Company should Susan adopt?
Relevant Laws:
Form of association:
• Consider the possible form of association, corporate and non-corporate
• Consider comparative advantages and disadvantages of each form of association in the light of facts given.
• Remember that there can be many relevant factors, not all of them related to corporate law issues. Taxation stamp duty and human factors can also be important.
Application
In this case, Mary as Sole trader, she wants to expand her business with a more appropriate structure. As a sole trader, Mary has unlimited type of liability. Beside, to transfer the ability of interest, it would be difficult for Mary because she needs new contracts with creditor. Thus, it appears that depend factors such as creditor or public, Mary might meet the difficulty to expand her business. Furthermore, Mary also can have advantages about loan and can employ others to help her as a sole trader.
As for Susan, she would incorporate as partnership with Mary, can be written or oral and express or implied. As a partnership, she can adopt a company structure depend on the expansion of Mary’s company. Base on the current market, Susan can adopt many different type of Liability Company. For example, company limited by share or unlimited.
Question2 (P63)
Facts:
Scenario: Marcia does not register her company until she is over 18. She wants her company called “Marcia’s Guaranteed Sparkle Pty Ltd”.
Issue:
• Will Marcia be able to