Australia Corporation Law
Corporate law in Australia is embodied in two statues enacted in 2001, the content of which is mostly derived from English business law. The Australian Securities and Investments Commission is responsible for administering corporate law in the country.
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History
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After settlement by English colonists, regulation of corporations remained within the power of the United Kingdom. Following the federation of the Commonwealth, the national government of Australia was granted some power to regulate corporate activities such as trade between the territories and other nations. The formation and incorporation, however, fell under responsibility of the territories, which led to inconsistent rules. As a result, in 2001, the Federal Parliament enacted the "corporations legislation" which created the national system in place today.
Sources of Law
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The primary source of corporate law in Australia is governed by two statutes enacted in 2001 that together are called "corporations legislation." The Corporations Act establishes the rules for formation, registration, incorporation, and general business conduct. The Australian Securities and Investments Commission Act created the Australian Securities and Investments Commission, which administers the laws and the rules governing corporations and business and investment practices.
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Considerations
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Chapter 2A of the Corporations Act governs formation and divides companies between proprietary, public, limited, and unlimited corporations, each concerning the size of the company and available capital. Chapter 6 offers specific rules on corporate takeovers and subjects them to foreign investment, anti-monopoly and employment protection regulations. Insolvency is governed by Chapter 5.
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References
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