Creating a company

No liability company Creation 9
Running Head: No liability company creation
Title: No liability company creation
Student Name and Id:
Course Name and Id:
University Affiliation
Date of submission: 7/9/2019
Authors Note
The cu
ent report is presented as part of the requirements to complete the course work.
Table of contents
3Introduction
3Liability of the company and Operations
3No liability of the company
4Constitution of the company
4Issue of shares and conversion of the shares:
5Internal management of the company
5Replaceable rules:
7References
8Appendix
Introduction
Company formation or the registration of the company in Australia need to be done so in the companies’ house. There is need to follow-up a systematic procedure to register or for formation of a company in Australia. Once a company is formed with all the underlying approvals and acceptance of the criterion applicable for it, it will become a legal entity as a person in the consideration of a law and all the business laws and the prevailing legislations will be applied to the entity as they will be applied for a legally abiding individual. The legislation and the guidelines for creation of an organization are different for different types and there is need for extensive consideration to a range of factors before finalizing an approval of a business as a legally approved entity. Depending on the type of business and governance mechanism, ownership and liability elements the formation procedures and the guidelines will be different. The following part of discussions is about no liability company formation in Australia (Act, 2001). There is an extensive discussion made to the range of applicable legislations in the context of cu
ent business formation and the details of the same are included in the report.
Liability of the company and Operations
The cu
ent company to be formed is a no liability company in Australia. The company will be suffixed with NL and will be guided by the corporations act, 2001 of Australia. The operations of the company will be just restricted to mining and it will not be undertaking any other operations which are just unsaid in the company charter. Mining interests and objectives are going to be in gold mining sector. Hence all the privileges available for no liability companies in mining sectors are applicable for this company.
No liability of the company
If the company has no liability(CA 2001,s.112), the shareholders of this company can choose not to pay when there is call over their shares. In these circumstances he will just forfeit the unpaid and paid shares of the company and there won’t be any sort of legal consequences to the share holders in the aftermath. However the share holder also has an option to convert the company to the limited liability firm, when all other conditions are advantageous for such conversion. All the shares which are not answers of the call, will be forfeited by the share owners and will be subjected to auction in a time span of after 14 days, share owners can just redeem the shares after paying the necessary expenses of the shares as well as the fee of the related expenses(Lipton et al.,2011).
Company name: XYZ NL
(XYZ is the name of the mining company and NL is the tag indicating that the company is No liability company – Earlier notation of the registration of the company like XYZ mining N.L. is now changed to XYZ NL.(CA 2001, s.117).
Section 147 of the corporations act is applicable here to finalize the name of the company(CA 2001, s.147). The name selected for the company need to be unique and should not be identical with any name reserved for a set of bodies, also the name is not supposed to be identical with any other name that is already existing for any other body...