2.1.2. Corporations Act

The Australian Corporations Act 2001 (Cth) is a federal law that governs the registration, operation, and management of corporations in Australia. It is a comprehensive piece of legislation that plays a key role in regulating the business environments. It sets out the rules for incorporating and operating a company, and helps to ensure that companies operate in a transparent and responsible manner.

Key points:

• Sets out the legal requirements for incorporating a company in Australia. This includes specifying the minimum number of directors, the types of shares that can be issued, and the rules around company names and registration.
• Once a company is registered, it must comply with a range of ongoing legal obligations. For example, companies must keep accurate financial records, hold regular meetings of directors and shareholders, and comply with various reporting requirements.
• Establishes the Australian Securities and Investments Commission (ASIC), which is responsible for enforcing the law and regulating corporate activity in Australia. ASIC has a range of powers to investigate and prosecute companies and individuals who breach the law, including the power to impose fines, issue injunctions, and seek criminal penalties.
• Provisions to protect the interests of shareholders, including rules around issuing and trading shares, and requirements for companies to disclose certain information to shareholders.
• Provisions to protect the interests of creditors, including rules around insolvency and bankruptcy.
  

Refer to Corporations Act