 | Steps involved in incorporation:
- Lodge an application with the Australian
Securities and Investments Commission (ASIC) and receive a Certificate of
Incorporation.
- Complete 2 compulsory sets of documents:
the Memorandum of Association and the Articles of Association.
- Receive an Australian Company Number (ACN)
that becomes part of the company name.
- Pay a required fee to the ASC.
|
| Limited Liability: the most money a
shareholder can lose is the amount they paid for their shares. Therefore, if
the company goes into liquidation the shareholders cannot be forced to sell
their personal assets to pay for the debts of the business. |
| Propriety (private) company: usually has
between 2 & 50 private shareholders. Shares in these companies are only
offered to those people the business wishes to have as part-owners.
|
| Public Company: shares are listed on the
Australian Stock Exchange (ASX) for the general public to buy and sell. It
has:
 | a minimum of 5 shareholders, but no limit
to the number. |
| no restrictions on the transfer of shares
or raising money from the public by offering shares |
| to issue a prospectus when selling their
shares for the first time |
| a minimum requirement of 3 directors (2
must live in Australia) |
| the word 'Limited' or 'Ltd' in its name
|
| to publish their audited financial
accounts each year, their Annual Report. |
|
| Cooperative: a group of people who join
together for a particular purpose. |
| Trust: a relationship in which one person
(the trustee) holds property (the trust property) on behalf of another (the
beneficiary). |
| Franchising: a license to operate an
individually owned business as if it were part of a chain of outlets or
stores. |
