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Assignment Task:

Task:

A company is a legal entity
?Incorporated via registration by Australian Securities and Investments Commission (ASIC)
?Subject to requirements of Corporations Act 2001
?
A company:
?has limited liability
?has its own separate legal existence
?has the legal powers of a natural person
?has financing advantages
?has the right to own assets and enter contracts
?has the right to sue and be sued
Proprietary (Pty) companies
?Minimum of 1 member, maximum of 50
?Minimum of 1 director
?Cannot raise funds from the public
?Classified as large or small (see next slide for further discussion)
?
Public companies
?Can invite public to subscribe for securities
?Can list on Australian Securities Exchange (ASX)
?Minimum 1 member, no maximum
?Minimum of 3 directors
?Must prepare published financial statements and be audited
 

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