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Corporation Law - Answer to Week 6 Situation 1 Issue: In this particular scenario, Polyester transferred an amount of $65000 to her own account from the company's account in order to settle her personal debts. She spends the entire transferred amount to settle her personal debts. Rule: Now, in this situation as per the Corporation Act 2001, the company’s integration considers it as a different legal unit, which is completely di…
Corporations Law - Week 6 Answer As per the Corporation Act 2001, Director of the entities have certain duties to follow:- Directors should follow due diligence They should work in good faith and interest of the company Company information should not be used for personal purpose, it should be for the interest of the company. Should not misuse his position for his personal interest or gain Disclose any interest on company Rul…
Corporations Law - Question 1 The simplest of the structures is called as the sole trader according to the Australian Corporation Law. The main advantage is that owing to the only owner, there is complete control over the decisions made in the business. However, on the flipside all the debts as well as the tasks need to be performed by the sole trader only. The business is comparatively has very few reporting requirements as well as has a reas…
Foundations of Australian Corporations Law A1. Sole Trader According to the Corporations' Act 2001, this business is of unlimited liability where the person initiated the business is solely responsible for all the liability and loss incurred during the business1. The advantages of sole trade business are that a person can have complete control over the management of the business as well as over the decision-making process. No fees of…
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