Inc. versus Co.
Thu, 21 Sept 2000, 07:28 pmWalter Plinge11 posts in thread
Inc. versus Co.
Thu, 21 Sept 2000, 07:28 pmI am having enormous difficulties assembling a committee for my opera company. Especially a treasurer and a secretary. I have reserved the name as an incorporated association, but I am thinking about ditching this in favour of a simple business name - a company - which could be run by one or two people.
What are people's thoughts either way? I am trying to do the right thing by going Inc.... you know, keeping the whole thing above-board and accountable, and avoiding the stigma of people thinking I'll bunk with the profits and vacation in the Bahamas for a year.
(although...)
But if I can't get a committee together, what other option do I have? Wouldn't it be simpler to run it as a busniess?
David M.
(Knight of the Round Meadows)
What are people's thoughts either way? I am trying to do the right thing by going Inc.... you know, keeping the whole thing above-board and accountable, and avoiding the stigma of people thinking I'll bunk with the profits and vacation in the Bahamas for a year.
(although...)
But if I can't get a committee together, what other option do I have? Wouldn't it be simpler to run it as a busniess?
David M.
(Knight of the Round Meadows)
RE: Inc. versus Co.
Fri, 22 Sept 2000, 12:32 pmDavid
The Corporations Law is the biggestand most comlicated peice of legislation Australia has ever produced. Earlier this year a comitee was commissioned to simplify it and they managed to make it about 30 pages longer!
If you want to be a company (in this case you would be a proprietry, closely held company) you need to write and lodge your Corporate Constitution with ASIC bearing in mind the replaceable rules in s98A of the Corps Law, then you need to observe your reporting requirements to them. You need to hold an annual general meeting to elect a board of directors and ,if your shareholders are the same as your directors (as is usually the case in situations like this) you need to know and abide by the formal speration of the powers and functions of the two bodies. You need to know your tax requirements and the shraeholder recourse against the company. You need to be familure with the concepts of corporate personality and limited liability.
In short, you need a lawyer.
I would start by ringing or e-mailing ASIC, they are usually quite helpful. There is actually a way for one person to constitute an entire corporation, that might be the way to go.
Good luck!
LEAH
PS You might want to think about Partnership, less tax breaks but a hell of a lot simpler to run providing no-one ever leaves until they die.
The Corporations Law is the biggestand most comlicated peice of legislation Australia has ever produced. Earlier this year a comitee was commissioned to simplify it and they managed to make it about 30 pages longer!
If you want to be a company (in this case you would be a proprietry, closely held company) you need to write and lodge your Corporate Constitution with ASIC bearing in mind the replaceable rules in s98A of the Corps Law, then you need to observe your reporting requirements to them. You need to hold an annual general meeting to elect a board of directors and ,if your shareholders are the same as your directors (as is usually the case in situations like this) you need to know and abide by the formal speration of the powers and functions of the two bodies. You need to know your tax requirements and the shraeholder recourse against the company. You need to be familure with the concepts of corporate personality and limited liability.
In short, you need a lawyer.
I would start by ringing or e-mailing ASIC, they are usually quite helpful. There is actually a way for one person to constitute an entire corporation, that might be the way to go.
Good luck!
LEAH
PS You might want to think about Partnership, less tax breaks but a hell of a lot simpler to run providing no-one ever leaves until they die.