CORPORATIONS LAW

Corporations Law



Corporations Law

Introduction

A corporation is a form of business organization that has a legal personality separate from its owners. For this reason, a corporation can acquire, transfer or dispose of property, sue and be sued in court, among other things. Generally, corporations are formed by various persons or entities, among which are the aforementioned shareholders. These are what might be called owners of the corporation, and they are natural or legal persons. Moreover, it is possible to have directors or counselors, who are responsible for the overall management of the corporation and who are chosen by the shareholders. It is usual that corporations have a registered agent, who will be responsible to receive all legal notices regarding the institution and send them to the officers (Mitchell, 2009, 7). Generally, due to the characteristics of the role, this position is occupied by a lawyer. As we see, there are several positions within a corporation, each of them necessary for the proper operation, however, is not exclusive positions, but a person holding one of them, you can perform the duties of any other office , serving one, two or more roles simultaneously. In general, a corporation is allowed to perform all types of transactions as permitted by the laws of each country. Therefore in this paper we are going to analyze corporation Law by evaluating some cases.

Common wealth of Australia established the corporations act of 200, this law is established to deal with business entities of Australia at interstate and federal level. It mainly focuses on companies but it also sometimes cover various laws related to other entities like managed investment schemes and partnership. Currently corporation act of 2001 is considered as world's largest act. This act was simplified by CLERP. This act is thousand pages long; it dwarfs those of other states like Sweden whose corporation act is less than 200 hundred pages comparatively. The corporations law helps in regulating issues like operations, and formation of companies (in combination with law which a company adopts), fundraising, officers duties, and takeovers. Corporations law of Australia was highly influenced form company Law of UK. This Act is operated by investment commission, a sole national regulatory authority, and the Australian securities which directly reports to treasurer.

Issue

The issue discussed in first case is regarding whole owning of shares by cotton limited since it hold 89.5% shares in Stain Co. now Cotton limited want to acquire all the shares of the company but it is able to because other 10.5% of shares are owned by small investors and Silk. They are basically refusing to sell their shares to Cotton Limited, now the problem here is that would it be possible for Silk to start a legal action against the Cotton Limited if we look at the Corporations Law 2001.

Shareholders Rights (Section 250E)

According to the corporations act 2001 under section 205E she may succeed in her action because according to corporations Law Corporation corporations can buy back its shares from stakeholder only when stakeholders ...