Corporations Act Essay

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1.1.1: What is a ‘company’? What is the difference between a ‘company’ and a ‘corporation’? A company is an artificial person created by the law. A company is a type of corporation. The general term ‘corporation’ applies to all artificial entities which have separate legal personality. A ‘company’ is a corporation formed or treated as having been formed under the Corporations Act 1.1.2: What is equity capital? What is debt capital? Equity capital is the capital (the fund of property that belongs to the company) contributed by members of the company. Debt capital is the capital contributed by creditors such as banks or other credit providers. CACL 1-220 1.1.3: Who are the company’s officers, and what is their role? The officers of a company are the persons responsible for its management: directors (including executive and non-executive directors) who make most of the decisions affecting the company, a secretary who is responsible for certain administrative and reporting functions, and other officers. CACL 1-240 1.2.1: What were (1) ‘corporations aggregate’; (2) ‘joint stock’; and (3) ‘deed of settlement’ companies? (1) The company originally developed as a means of conferring on large groups of people the capacity to own and to deal with property and interests cooperatively to advance their collective aims. One of the earliest forms of company was the corporation aggregate which emerged in England during the middle ages. The creation of a corporation aggregate required the consent of the Crown through a Royal Charter. An example of a corporation aggregate was the East India Company. (2) The 17th century saw the development of joint stock. This was a mechanism whereby a person could invest a sum of money in a venture in return for an entitlement to share in the profits of the venture. The investor’s entitlement was represented by a share, which could be

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