Legt2741Note
A s ae o . s h r d n.
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LEGT2741 Lecture 1 – Structure of Australian Company Law and Administration
Purpose: Describe the development of company law in England.
Understand the current structure of Australian company law.
Identify the process of and current law reforms.
Explain how company law is administered through ASIC.
English Company Law:
Incorporation Monasteries, local government boroughs and trade guilds were the earliest examples of bodies to be incorporated by Royal Charter (prior to parliamentary democracy).
Commercial Development The 17th and 18th Centuries led to the formation of large, partnership-like structures known as joint-stock companies, so that pooled investments could be made. At this point, partnership and corporate law were fused.
The Bubble Act of 1720 attempted to stop the rampant growth to joint stock companies (excessive speculation), particularly in the Dutch tulip industry.
Such activity is similar to that before the dot.com collapse.
Bubble Act of 1720 An early form of securities regulation directed at ‘persons who contrive such dangerous and mischievous undertakings, under dales pretences of public good, and draw in many unwary persons to subscribe’.
It sought to limit those who could raise capital through the issue of securities by requiring royal charter
(merit regulation, where a minimum standard or approval is required).
It was repealed in 1825 as it did not meet the aims).
Joint Stock Companies Registration and Regulation Act 1844 (UK) Set out a procedure for incorporation of companies without the need for a Royal Charter (i.e. Incorporation was no longer a privilege.
Limited Liability Act 1855 (UK) enhanced this developed by allowing people to take commercial risks without concern that creditors might seek access to their personal wealth.
Modern Practice Can now be traced back to the 1844 Act, which assisted the formation of companies – to form a company, one only need to fill
.
LEGT2741 Lecture 1 – Structure of Australian Company Law and Administration
Purpose: Describe the development of company law in England.
Understand the current structure of Australian company law.
Identify the process of and current law reforms.
Explain how company law is administered through ASIC.
English Company Law:
Incorporation Monasteries, local government boroughs and trade guilds were the earliest examples of bodies to be incorporated by Royal Charter (prior to parliamentary democracy).
Commercial Development The 17th and 18th Centuries led to the formation of large, partnership-like structures known as joint-stock companies, so that pooled investments could be made. At this point, partnership and corporate law were fused.
The Bubble Act of 1720 attempted to stop the rampant growth to joint stock companies (excessive speculation), particularly in the Dutch tulip industry.
Such activity is similar to that before the dot.com collapse.
Bubble Act of 1720 An early form of securities regulation directed at ‘persons who contrive such dangerous and mischievous undertakings, under dales pretences of public good, and draw in many unwary persons to subscribe’.
It sought to limit those who could raise capital through the issue of securities by requiring royal charter
(merit regulation, where a minimum standard or approval is required).
It was repealed in 1825 as it did not meet the aims).
Joint Stock Companies Registration and Regulation Act 1844 (UK) Set out a procedure for incorporation of companies without the need for a Royal Charter (i.e. Incorporation was no longer a privilege.
Limited Liability Act 1855 (UK) enhanced this developed by allowing people to take commercial risks without concern that creditors might seek access to their personal wealth.
Modern Practice Can now be traced back to the 1844 Act, which assisted the formation of companies – to form a company, one only need to fill