T1 Introduction to Company Law

Week Commencing 14 March 2016

Readings
Hanrahan, Ramsay and Stapledon, Commercial Applications of Company Law (2016)
(RHS)

Chs 1 to 3-480
Ch 26-001 to 26-080

Salomon v Salomon & Co Ltd [1897] AC 22 (see BlackBoard)

Instructions
These questions are drawn from RHS, as well as the discussion in Lectures 1 and 2.
From your lecture notes and the readings, answer all questions below. NB: Your
answers may be collected and/or you may be called on in class to respond on the
basis of your answers.

Questions
1.

You have been invited for an interview by The Job of Your Dreams Pty Ltd,
a consulting firm specialised in finding graduate opportunities for
Commerce and Business students. The recruiter asks you about the
courses you are taking this semester. In one brief paragraph, tell the
recruiter:
a. What is company law.
b. Why your knowledge of company law will make you a good
hire.

2.

What is the South Sea Bubble

a. The South Sea Company, a company formed in 1711.
b. The Bubble Act of 1720 (UK), an Act of the British Parliament
which prohibited joint stock companies.
c. A body corporate established by Royal Charter.

3.

The Corporations Act 2001 is the main company law statute in Australia. It
is federal legislation in force since 15 July 2001. Looking at para. 2-220 of
the text book, briefly explain:
a. Why the cooperative scheme (1981 1991) and Corporations
Law 1991 failed. Hint: Remember the constitutional division of
power in Australia between the federal government and the
states, and the constitutional challenges mentioned in the text
book.
b. How the Commonwealth government finally got the power to
regulate on company law matters. Hint: Consider s 51(xxxvii)
Commonwealth Constitution.

4.

Give a two sentence introduction to ASIC and list three of its functions.

5.

FWPL is a proprietary company.

a. What is a proprietary company? Hint: see s 45A Corporations
Act 2001.
b. Has the size of FWPLs operations grown beyond the original
scale? Does this change its legal status?

6. GML is a public company with shares listed for quotation on the ASX.
a. What is a public company?
b. What does it mean to say that a company is listed? Are all
public companies listed on the ASX?
c. Which companies must comply with the ASXs Listing Rules?
What is the legal effect of the Rules?