Capital Structure Of A Company

Submitted By bluemay
Words: 1179
Pages: 5
Open Document
What is a company? * Come into existence through registration with ASIC (Australian Securities and Investments Commission) * They are artificial legal entities that have attribute of a separate legal entity. * Previously required multiple people, but now require only 1 member (If the company is limited by shares- the member will hold at least 1 share). * All companies must have at least 1 director, all public companies must have a secretary (although proprietary companies tend to have 1). * Large companies tend to have officers that are involved in management

Company Capital Structure
3 sources of funds: 1. Capital contributed by people who form the company or become members of the company 2. Creditors who lend money, 3. Profits not distributed to its members

Shares
Once a person has paid money, they are given a share, which entitles them to either control rights (voting and information) or distribution rights (receive dividends or assets upon winding up od company).

Members: Any person that holds shares in a company is a member of the company. They have particular rights relating to administration. Any legal person can become a member of a company, this can mean that companies can become members of other companies.

Debt Capital: Money that is borrowed by a company whether through a bank, credit provider or supplier. This can be either secured) against the company’s assets or the business) or unsecured. These entities that lend money are NOT members of the company.

Company Management
Managing companies involves decision-making, which is comprised of: * Appropriate capital structure * Nature and form of the company’s activities.

Officers: are persons (only humans) responsible for the company’s management. (In small companies, officers and members may be the same person).
Board of Directors: when there are more than one director in a company.

Directors of company are decided through a manner agreed between the members and reflected in a company’s internal governance rules. Their powers are decided by the law and on internal rules. The difference between whether they are executive or not is whether they are employed by the company.

Secretary: Responsible for administrative and reporting functions defined by the law, a person can be both director and secretary.
Chapter 2 – Company Law

Company Law covers 4 broad main aspects: 1. The formation and ultimately termination of companies 2. Relationships between participants in companies (members, directors, employees and officers) 3. Corporate Finance: how the raise capital – equity capital and debt finance 4. Implications of external party dealings

If company law is breached through either a person or the company, depending on the rule breach, one of or both may result: * The person is subject to a public law sanction, which is a fine or term of imprisonment as defined per state. * The person or company may be stopped from engaging in the wrongful conduct or may be required to do further acts or compensations. This is a private law remedy
Certain contraventions of the Corporations Act is a criminal offences while other provisions are civil penalty provisions.

Company Law is derived from: 1. The Corporations Act 2. Case Law 3. Other sources of law such as ASIC, ASX rulings, etc

Corporations Act
The corporations Act is a statuary source of company law in Australia and contains many rules governing companies.
Chapter 2A-2N and Ch6A of the corporations act along with Ch 1 (which contains rules for interpreting and applying the Act) and Ch 9 (which includes some consequences of contravening the Act) make up the core of Aus company law.

Case Law (‘Precedent’)
Case Law can be used as a source for additional binding rules that are not in the Corporations Act or are binding statements governing interpretation of the provisions of the Corporations Act.
It is
Show More

Related Documents: Capital Structure Of A Company

What a Company Essay

宗教英语词汇 帝王等)统治；朝代，在位时代 reign 佛经 buddhist scriptures [宗教、政治]教义；原则 doctrine 思想史 intellectual history ...的一个主要的部分 an integral part of... 多灾多难的 calamitous 密教（中国佛教宗派之一） Esotericism 大乘（佛教宗派之一） Mahayana/Greater Vehicle 小乘（佛教宗派之一） Theravada/Hinayana/Lesser Vehicle 土生土长的 indigenous 达赖 Dalai 班禅 Bainqen(Panchen) 达摩 Bodhidharma 法显 Faxian 玄奘 Xuanzang 法，即达摩，支配个人行为的宗教伦理规范 dharma 鉴真 Jianzhen 地产 landed property 废除（法令等），取消 abrogate 支柱，后盾 prop 养生法 regimen 默想；坐禅 meditation 符咒 charm 咒语 spell 苦行的…

Words 892 - Pages 4

Essay on What Is In a Company Logo?

What Is In a Company Logo? Page 1 What Is In A Company Logo? Peggy Payne Mid-American Christian University What Is In a Company Logo? Page 2 You see company logos everywhere you look. On daily items of use such as toothpaste, hair spray, food items, and even clothing articles. A company's logo is everything that identifies that company. Just like your name is important to you. It is how you are identified. Your name means something…

Words 697 - Pages 3

Week 1. What Is The Name Of The Company?

Week 2 Mini Case Assignment 1. What is the name of the company? What is the industry sector? Google Inc. is a global technology leader focused on improving the ways people connect with information. Google aspires to build products and provide services that improve the lives of billions of people globally. Google’s mission is to organize the world’s information and make it universally accessible and useful. Google’s innovations in web search and advertising have made their website a top internet…

Words 693 - Pages 3

What Was The Goal Of The Ohio Company

Chapter 6 Review Sheet – Roark What was the goal of the Ohio Company? Started by Lawrence and Augustine Washington the Ohio company goal was to secure wilderness tracts to be resold later on the exploding Anglo- American population seeking fresh land. What was George Washington’s first (and quite delicate) assignment? He was sent by Robert Dinwiddie as a messenger in 1753 to warn the French that they were trespassing on Virginia land. What did the French and Indians do to Fort Necessity? During…

Words 1382 - Pages 6

What Does It Mean For A Company To Think Strategically?

of Human Resources February 2,2015 Amtrak Article Q: What does it mean for a company to think strategically? In your own words, what is Amtrak doing to be strategic? For a company to be thinking strategically they need to be evaluating every decisions with the utmost care. Before a company makes a decision they need to weigh out all the possibilities and see what works best for them. To be considered thinking strategically a company needs to be thinking and working on not only about their current…

Words 284 - Pages 2

What Companies Have Recently Filed Initial Public Offerings?

Gina Mendoza * Task 3 * Due: October 1, 2012 * What Companies have Recently Filed Initial Public Offerings? 1. Explain how you found the one or two companies that interested you. Step 1: I followed the link you provided. www.ipocentral.com Step 2: I browsed some of the subcategories that Hoovers’ IPO Central provided. [For Example: IPO Pipeline, IPO Filing, IPO Performance, IPO Scorecard, Biggest First Days, Winners and Losers.] Step 3: I then selected…

Words 1585 - Pages 7

Essay on What is the impact of automation on human resource management in advanced manufacturing companies?

What is the impact of automation on human resource management in advanced manufacturing companies? Introduction The progress of automation and smart devices has laid the foundation for the development of current manufacturing by achieving a high level of accuracy and consistency as well as contributed to addressing some common issues such as conservation of energy and resources (Frontini and Kennedy 2003). While the demands for introducing advanced machines into manufacturing companies have…

Words 1787 - Pages 8

Essay on What messages would you like to bring to large NGOs, international companies and government agencies on what they should do to more effectively end poverty?

technology, information, skills, infrastructure, institutions, equity, and empowerment4. Since poor countries are inadequate in many of these areas, they are ill equipped to deal with environmental disruptions. As such, when advising large NGOs, companies and governmental agencies, I would suggest leaders focus on building regional capacity to deal with future environmental stresses and disasters. Instead of providing aid relief when disasters strike, organizations should help poor countries anticipate…

Words 499 - Pages 2

Essay on It Is Said That Many Companies Are over Managed and Under Led. Define Leadership and Explain What the Path-Goal Theory of Leadership Is. Identify the Four Leadership Styles of Path-Goal Theory and Explain When They Are Most Appropriately Used.

In this era of socialism, most people do not like to be over-controlled and over- managed. They tend to have higher free will and thinking, work and etc. Leaders will have different leadership styles to manage and lead their employees which are identified by the path–goal theory of leadership. This is why the attitude and the behavior of a leader will influence his/her subordinates on achieving their goals and objectives. Leadership is mostly defined as a process of leading or influencing a group…

Words 1341 - Pages 6

Studds-Nolan Case Essay

What are the intercultural issues involved in the relationship between the two partners? In all companies, the understanding of the intercultural issues is really important. In fact, companies have to deals with the culture that they have into. Company Culture is the term given to the shared values and practices of the employees. So the companies have to know that to understand their employees and for manage their teams in a right way. Above all, if the companies…

Words 949 - Pages 4