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CORPORATE ACCOUNTING
Essay specific features
Written by:
Troy W
Date added:
August 6, 2015
Level:
University
Grade:
A
No of pages / words:
5 / 1121
Was viewed:
10276 times
Rating of current essay:
Essay content:
listed on a Stock Exchange to facilitate transferability.
Proprietary companies on the other hand have specific limitations in terms of the amount and restrictions on its fundraising activities.
Specific features of a proprietary company include the need to have a share capital (unlike a public company which may be limited by guarantee and not merely shares):
? a requirement to have at least one shareholder and only one director (three directors for a public company) and not more than 50 shareholders (not including employee shareholders)
? not required to restrict the transfer of its shares (however it may elect to do so)
? the use of the designation "Pty" or "Proprietary" in its name
? a requirement not to engage in any fundraising activity which would require it to lodge a disclosure document with ASIC...
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Providing the company complies with S117 of the Corporations Act, ASIC will:
? give the company an ACN Number
? register the company
? issue a certificate that states the company's name, ACN No. etc.
Once registered, the company is capable of performing all the functions of a corporate body.
Question 6...
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