COMPANY LAW

Company Law

Company Law

Introduction

Company law

A company is a business organization. The formation of the company forms the link and association among the people who are involved in the formation of companies. There are three types of the formation of companies. These include sole proprietorship, partnership and the limited liability. In sole proprietorship the individual person operates the company and is alone liable for all the liabilities of the company; in partnership multiple individuals operate the company and they all are liable to the liabilities of the company according to their collective gains of the company. In it there is the association among the individuals who provide some form of capital funding for the operation of the businesses. In limited liability the group of individuals is liable to the liabilities according to their shared capital in the business for the purpose of formation and for the operations of the company.

In all the types of the businesses, all the group of individuals has the common purpose and this purpose is to gain the profit maximization and to maximize the share capital in the market (Ciro, T and Symes, C., 2009, pp. 241).

The company act has been developed almost in all the countries of the world to assist the individuals in establishing their businesses with the legal rights and implementation of laws. The company law or corporate law involves the numerous law acts that pertain to the multiple issues that arise in the companies. These laws involve the acts that range from the establishment of the business to the dissolving of the business entity. All these laws have been established in order to make sure that the collection of associated groups of individuals or the specific single individual can operate the business according the law and to ensure the avoidance of issues that may arise in the businesses (Ankur Mittal, 2012). The company itself is considered as a legal person because the company name is raised because of the owning and representation of it on behalf of the legal person under law (Hanrahan, P. Ramsay, I. & Stapledon, G., 2011, pp. 825). Therefore, it has also certain rights and obligations that are clarified under the company act or the corporate act.

The Corporate Act 2001 of Australia is the provision of corporate governance that provides the legislations and laws for governing the issues and legal matters of the organizations. The laws and act are being constructed according to the types of the organizations. For each type of the company the legislation are provided for the formation, status, conduct, and corporate governance of companies as legal entities. The legal association of corporation, partnership, proprietorship, trust, or individual based corporations or companies has legal standings in the eyes of the law. A legal company or corporation has the legal capacity to enter into agreements or contracts with the related businesses and the individuals for the carrying out of obligations, gaining or/ and paying out off debts, suing or/ and being sued in its own right, and to ...