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INDEX

AASB see Australian Accounting AUASB see Auditing and Assurance business judgment rule 212–214, 222 Standards Board Standards Board using the defence 213–214 ABN see Australian Business Number Auditing and Assurance Standards Board business name registration 40, 44 absolute liability 135, 136 (AUASB) 276 business names 40 accountability 174 auditor’s report 286 display and use of 42 ACN see Australian Company Number Australian Accounting Standards Board registration 40–41 acquiescence 122, 124 (AASB) 275–276 restrictions 41–42 active promoters 100 Australian Business Number (ABN) business organisations actual authority 120, 136 61, 77 business names 40 express 120–121 Australian Company Number (ACN) business structure 3–7 implied 121–122 58, 60, 61 companies 27–30 adjourned meetings 154 Australian Prudential Regulation cooperatives 30–34 Aequitas Ltd v Sparad No 100 Ltd 100 Authority (APRA) 32 hybrid business structures 37–40 agency costs 173, 194 Australian Securities and Investments incorporated association 34–37 agency theory 115, 137, 173–174, 194 Commission (ASIC) 50, 73, 143, joint ventures 17–19 agenda of meetings 159, 168 175, 200, 201, 228, 274–275 partnerships 10–17 AGM see annual general meeting Australian Securities and Investments sole traders 7–10 agricultural cooperatives 33 Commission Act 2001 (ASIC Act) trusts 20–27 Airpeak Pty Ltd & Ors v Jetstream 50 business structure 3–7 Aircraft Ltd & Anor (1997) 318 Australian Securities and Investments Andy Kala Pty Ltd v EJ Doherty Commission Act 2001 (Cth) 274 CAMAC see Corporations and Markets (Northcote) Pty Ltd (1995) 90 Australian Securities Exchange (ASX) Advisory Committee annual general meeting (AGM) 153, 52, 83, 84, 148, 174, 175, 275 Canadian Aero Services v O’Malley 168 Australian Taxation Office (ATO) 175 (1973) 238 annual reporting automatic disqualification 188 Canny Gabriel Castle Jackson auditor’s report 286 Automatic Self-Cleansing Filter Advertising Pty Ltd v Volume Sales directors’ report 286 Syndicate Co v Cuninghame (1906) (Finance) Pty Ltd (1974) 12 financial report 278–286 151, 157, 186 Caratti Holding Co Pty Ltd (1975) 90, ANZ Executors & Trustee Co. Ltd v avoid conflict, promoters 102 322 Qintex Australia Ltd (receivers and Aztech Science v Atlanta Aerospace (Woy Carew-Reid v The Public Trustee (1996) managers appointed) (1990) 125 Woy) (2005) 108 145 apparent authority 122, 137 Carrier Australia v Hunt (1939) 90 APRA see Australian Prudential balance sheet solvency test 165 carrying on a business 11 Regulation Authority Banking Act 1959 (Cth) 32 cash flow test 330, 343, 359 Articles of Association 78, 94 Beck v Tuckey (2007) 150 CBA see of Ashbury Railway Carriage & Iron Co v Bell v Westpac Banking Corporation Australia Riche (1875) 86 228 chair 161, 168, 208–209 ASIC see Australian Securities and beneficiary 21, 44 Chan v Zacharia (1984) 15 Investments Commission best interests of the company 229–233, chapter 6D disclosure 105 ASIC v Adler (2002) 209 246 Charterbridge Corp Ltd v Lloyds Bank ASIC v Adler (no 3) (2002) 228 corporate groups’ interests 232–233 Ltd (1970) 228 ASIC v Cassimatis (No 8) (2016) 208 creditors’ interests 230–231 CHESS see Clearing House Electronic ASIC v Citigroup 302 employees’ interests 231 Subregister System ASIC v Citigroup Global Markets members’ interests 230 chose in action 141, 168 Australia Pty Ltd (No 4) (2007) nominee officers’ interests 232–233 circulating resolution 159, 168, 186, 301 bonus shares 258, 269 194 ASIC v Healey (2011) 206 COPYRIGHTEDBoyd v Feeney (2017) 313 MATERIALcirculating security interest 266, 269 ASIC v Hellicar (2012) 299 Bradley Egg Farm Ltd v Clifford (1943) class action 322, 324 ASIC v Hellicar and ASIC v McDonald 35 class meetings 154 (2012) 207 breach of statutory contract, remedies for class of shares 257, 269 ASIC v Hochtief Aktiengesellschaft 91 classes of companies 51–57 (2016) 300 breaches of directors’ duties Clearing House Electronic Subregister ASIC v Newcrest Mining Ltd (2014) duty of care, skill and diligence 245 System (CHESS) 149–150 299 duty of good faith and for proper common law 67, 106–107, 147 ASIC v Plymin (2003) 330 purpose 245 Commonwealth Bank of Australia ASIC v Rich (2009) 213 duty to avoid conflicts of interest (CBA) 286 ASIC v Rich (2003) 208 245 Commonwealth of Australia Constitution ASIC v Vines (2006) 208 summary of consequences for 245 Act s 51(xx) 50 ASIC v Vizard (2005) 241 breakdown in mutual trust 316 companies 6, 27–30, 44, 50, 73 asset protection 21 Briggs v James Hardie & Co Pty Ltd advantages of 29 ASX see Australian Securities Exchange (1989) 68, 132 agent substantive authority 120–124 ASX Listing Rules 149 Brunninghausen v Glavanics (1999) changing the rules of 91 ATO see Australian Taxation Office 205 classes of 51–57 attachment 265 Burland v Earle (1902) 152 comparing types 55–57

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INDEX 391 i i

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companies (cont.) consumer cooperatives 31 Crabtree-Vickers Pty Ltd v Australian consent from officers, members and continuous disclosure 294, 304 Direct Mail Advertising & occupiers 59 generally available information Addressing Co. Pty Ltd (1975) contract binding by and against 297–298 123 company 116–120 liability and offences relating to creditors’ interests 230–231 contract directly 117–119 298–299 creditors’ voluntary winding up 348, contract indirectly 119–120 and material effect 298 359 corporate groups 63–64 section 674 and ASX Listing Rule 3.1 crime 133, 137 corporate liability 116 295–297 Crimes (Industrial Manslaughter) corporate veil 64–69 contract Amendment Act 2003 133 defined 50 between company and each director Criminal Code Act 1995 (Cth) 133 deregistration of 358 and company secretary 89–90 Crowd-sourced Funding Act 260 disadvantages of 29–30 between company and each member crowdfunding 33, 44, 259, 270 established after July 1998 78–79 89 CSR see corporate social responsibility established prior to July 1998 78 between member and each other cumulative operation of the assumptions formal registration 60 member 90 — s 129(8) 131 indoor management rule see indoor contract directly, companies cumulative preference share 258–259, management rule formal authority 117–119 270 internal management of 78 substantive authority 119 key elements of 27, 28f contractual rights 310 legal capacity and powers 115–116 convertible preference shares 258, 269 damages 106, 110 legal name 58–59 Cook v Deeks (1916) 237 Daniels v Anderson (1995) 201, 206, legal obligations 59–61 cooperatives 6, 30–34 207, 211 liability see liability agricultural 33 Darvall v North Brick & Tile Co limited by guarantee 27 digital 33 Ltd (1988) 230 limited by shares 27 financial 32–33 de facto directors 178 limited liability 69 key elements of 31f deadlock in management 316 operating the 59 non-trading 33 death of sole trustee 26 regulation in Australia 50–51 trading 30–33 debentures 262–264, 270 replaceable rules 79–83 vs. not-for-profit organisations 34 parties to debenture 263–264 rules and procedures 77–79 corporate governance 174, 194 statutory requirements to issue 263 separate legal entity 61–63 and company management 176 debt financing 260–262, 270 starting a 57–61 theories of 173–174 deceptive disclosure 291, 304 statutory assumptions 128–131 working definition of 174–176 liability for 292–294 structure 57–58 corporate group 39–40, 63–64, 73 declaration of dividends 166 types of 27–28 legal issues relating to 64 deed 117, 137 winding up 347f corporate groups’ interests 232–233 deed of company arrangement (DOCA) company constitution 83–85 corporate law 142 340–341, 343 bound by replaceable rules and corporate liability 116 deemed debts 216–218 88–91 corporate social responsibility (CSR) defective disclosure 291, 304 contents of 84–85 174 defences process to change 92 corporate veil 64, 73 company constitution 239–240 purpose and fairness of change legal principle of 65–66 for creditors 356 92–93 lifting 66–69 seek approval from the company 239 company limited by guarantee 54, 73 relation to corporate groups 66 delegation company limited by shares 54, 73 corporation 50, 73 information and advice provided by company position 121–122 Corporations Act see Corporations Act others 211–212 company secretary 179–180, 194 2001 (Cth) responsibility for actions 211 company’s constitution 148, 182 Corporations Act (Crowd-sourced deregistration of company 358 company’s officers 177f Funding) Amendment Act 2017 DFC of T v Austin (1998) 178 Competition and Consumer Act 2010 (Cth) 259 digital cooperative 33, 44 (Cth) 103, 133 Corporations Act 1989 (Cth) 50 diligence 209–212, 222 comprehensive disclosure 104 Corporations Act 2001 (Cth) 50–51, attending board meetings 210 compulsory winding up 349, 359 73, 77, 98, 142, 199, 227, 253, 273, delegation 210–212 effects of 349 309, 329, 346 director or company secretary — grounds for 349 Corporations Amendment s 129(2) 129 conflict of interest 235, 246 (Crowd-sourced Funding for directors 154, 177–179, 194 conflict arise 235–239 Proprietary Companies) Act 2018 appointment of 187–190 defences 239–240 (Cth) 259 being a nominee director 239 under general law 235–240 Corporations and Markets Advisory competing companies 239 consolidated accounts 64 Committee (CAMAC) 259 competition with the company 237 constitution 83, 94 Corporations Law Amendment corporate opportunity 237–238 constitution and replaceable rules (Employee Entitlements) Act 2001 disclosures 191 complied with — s 129(1) 129 231 disqualification 188–189 constructive notice rule 87, 95, 125, correcting the register of members holding directorship 239 137 145–146 meeting of the board 184–186 constructive trust 106, 110 court 155 members’ powers over 186–187

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misusing confidential company under s 588G of Corporations Act member’s common law application information or company funds 215–216 322 238 representative or class action not properly appointed 189–190 efficient market hypothesis 274, 304 322–323 notice of meetings 184–185 EGM see extraordinary general meeting suing in breach of contract 323 powers of 182–184 Eley v Positive Government Security Life Gilford Motor Co Ltd v Horne (1933) removal of 191 Assurance Co Ltd (1875) 89 67 remuneration 190–191 employees’ interests 231 Glencore PLC 39 resignation and vacation of office enhanced disclosure securities 273, Gluckstein v Barnes (1900) 104 191 304 good faith 227–229, 246 resolutions 185–187 Equiticorp Finance Ltd v Bank of NZ Grant v John Grant & Sons Pty Ltd roles 181f (1993) 232 (1950) 146 roles and powers 180–187 equity crowdfunding 259–260 grantor 264 undisclosed personal profits equity financing 252, 270 Greenhalg v Arderne Cinemas Ltd 236–237 Erlanger v New Sombrero Phosphate Co (1946) 204 directors’ report 286 (1878) 102, 105 group 11 director’s contract of service 90 estopped 147, 168 disclosing entities 276, 304 Exception Holdings Pty Ltd (In Liq) v hard law 274–276 disclosure 102–105, 242–243, 256, Albarran & Ors (2005) 333 Hely-Hutchinson v Brayhead Ltd (1967) 270, 274, 304 exceptions to disclosure under s 191 121 form and content of fundraising 243 Hickman v Kent or Romney Marsh Sheep 289–291 executive director 207–208 Breeders’ Association (1915) 89 not required for issuing securities exemptions 242 holding company 63, 73 288–289 express actual authority 120, 137 Hollis v Vabu Pty Ltd (2001) 132 securities in primary markets — s 706 expulsion 15–16 Hooker Investments Pty Ltd v Baring 288 extraordinary general meeting (EGM) Brothers Halkerston Securities Ltd securities in secondary markets 153, 168 (1986) 301 (secondary sales) — s 707 288 Hospital Products Ltd v United States discretionary trust 23, 44 failure of substratum 316 Surgical Corp (1984) 201 disqualified 188, 194 Fexuto Pty Ltd v Bosnjak Holdings Pty Howard Smith Ltd v Ampol Petroleum distribution to creditors 357–358 Ltd (2001) 314 Ltd (1974) 212, 233 dividend imputation 166, 168 fiduciary 201 hybrid business structures 7, 37–40 dividends 164–166, 168 fiduciary duties 14, 44 examples of 39–40 declaration of 166 fiduciary obligation 201, 227, 246 reason for 38–39 entitlement to 164–165 final distributions hybrid law 274–276 improper dividend payment 166 and deregistration 356 payment of 165–166 deregistration of company 358 taxation of 166 distribution to creditors 357–358 identifying promoters 100–101 DOCA see deed of company financial benefit 242 IMF (Australia) Ltd v Sons of Gwalia arrangement financial cooperatives 32–33, 44 Ltd (2005) 145 doctrine of separation of powers 176, financial report 278–286 implied actual authority 121, 137 194 Fire Nymph Products Ltd v The Heating In Re Bahia and San Francisco Rail Co document duly executed with seal — Centre Pty Ltd (1992) 266 (1868) 147 s 129(6) 131 fixed trust 22, 44 incorporated association 7, 34–37, 44 document duly executed without seal — Florgale Uniforms Pty Ltd v NAB (2004) advantages of 37 s 129(5) 130–131 336 disadvantages of 37 duties of trustees 24–25 forgery 127–128 key features of 36–37 duties under common law and equity formal authority 118, 137 incorporated limited partnerships 17, 200–201 formal registration, companies 60 44 act with reasonable care and diligence Fortescue Metals Group Ltd v ASIC; independent party 104 201 Forrest v ASIC (2012) 297 indoor management rule 126, 137 fiduciary duties 201 Fraser v NRMA Holdings Ltd (1995) and constructive notice 126–128 duty of care and diligence 203–206 292 injunction 317, 324 consequences of breaching fraud 127–128 insider trading 205–206 fraud or misconduct 316 and generally available information defences against breach of 212–214 freely transferable shares 148–149 301 director breached 205 Freeman & Lockyer v Buckhurst and information 301 duty of loyalty 201, 222 Properties Ltd (1964) 122 and materiality 301 duty to prevent insolvent trading fully paid share 259, 270 exceptions 301–302 company becomes insolvent 218 fundraising 286–291 liability and offences relating to 302 defences to breach of s 588G Furs Ltd v Tomkies (1936) 236 sections 1043A and 1042A 300–301 218–219 insolvency 218, 329–331, 343 directors’ liability for insolvent Gambotto v WCP (1995) 92, 323 test for 330–331 trading 215–216 general civil liability only provision insolvent 215, 222 penalties and remedies 219 294 insolvent trading 64, 215, 222 safe harbour against liability for general law remedies 322 insolvent transaction 343, 352, 359 insolvent trading 219–220 equitable limitation on majority voting integrity 174 suspecting insolvency 218 323 internal management of companies 78

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INDEX 393 i i

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invalid circulating security interest proceedings 159–164 penalties and remedies 203 charges 355–356 proper purpose 157 operators 27, 44 proxies 161–163 oppression remedy 312, 324 NV v ASIC quorum 160–161 applicants 312 (2010) 299 technology of 159 circumstances 312–313 John Shaw and Sons (Salford) Ltd v types of 153–154 oppressive or unfair conduct Shaw (1935) 176 voting and resolutions 159 315–316 joint and several liability 13, 44 members’ rights 142, 142f tests 313–315 joint venture 6, 17–19, 39, 44 balance of majority and minority ordinary resolution 159, 168 advantages of 18 309–310 ordinary shares 258, 270 business structure 18f contractual rights 310 organic theory 115, 137, 176 defined 17–18 and remedies 310–312 organisational structures 5f disadvantages of 18 statutory rights 310 vs. partnership 18 members’ voluntary winding up 348, Panorama Developments (Guildford) Ltd joint venture agreement 19 359 v Fidelis Furnishing Fabrics Ltd Jones v Lipman (1962) 67 member’s personal rights 321–322 (1971) 179 Memorandum of Association 78, 95 Parke v Daily News Ltd (1962) 231 Kevroy Pty Ltd v Keswick Developments Meriton Apartments Pty Ltd v The parties to debenture Pty Ltd (2009) 108 Owners Strata Plan No. 72381 duties of borrower 263 (2015) 101 duties of guarantor 264 lack of confidence in management 316 minimise income tax 21 duties of trustee 263–264 Lagunas Nitrate Company v Lagunas minimum standards of care 206–207 partly paid shares 259, 270 Syndicate 100, 102, 104, 105 minutes of members’ meetings 160, partner 10, 44 large proprietary company 52, 73 168 changes to 15–16 Lee v Lee’s Air Farming Ltd (1961) 65 Modern Slavery Act 2018 (Cth) 174 dealings with each other 14 legal capacity, companies 115–116 multi-stakeholder cooperatives 31 fiduciary and statutory duties 14–15 Lennard’s Carrying Co Ltd v Asiatic partnership 6, 10–17 Petroleum Co Ltd (1915) 132 narrow ultra vires 125–126 advantages of 12 Lewis v Cook (2000) 354 negative pledge clause 266, 270 alternative forms of 16–17 liability Nibaldi v RM Fitzroy & Associates business structure 10f for subsidiary in tort 132 PtyLtd (1996) 192 defined 10–12, 44 in crime 133 no liability (NL) company 28, 54, 73 disadvantages of 13 in tort 132–3 nominee officers’ interests 232–233 dissolving 16 of trustees 25 non-circulating security interest 266, property of 15 limited liability 27, 44, 69, 73 270 partnership agreement 10, 44 limited partnership 16–17, 39, 44 non-cumulative preference share passive promoters 100, 110 liquidation 346–349, 359 258–259, 270 Paul A Davies (Aust) Pty Ltd v Davies liquidator non-executive director 208 (1983) 238 appointment of 349–351 non-trading cooperative 33, 44 Percival v Wright (1902) 204 duties of 350–351 Northside Developments Pty Ltd v perfection 265 powers of 350 Register-General (1990) 127 periodic disclosure 274, 304 listed companies 28 novation 107, 110 personal action listed company 52, 73 NRMA v Parker (1986) 151 general law remedies 322 member’s personal rights 321–322 Macaura v Northern Assurance (1925) objects clause 85, 95 statutory contract 322 65 practical implications of 86–88 personal guarantee 70, 73 managing director/chief executive officer offer information statement 291, 304 personal property 264 209 officer or agent with authority to warrant Personal Property Securities Act 2009 material personal interest 242, 247 that document is genuine or true (Cth) 264, 265, 267, 338 member approval 242 copy — s 129(7) 131 powers of directors 81 member liability 54–55 officer or agent — s 129(3) 129–130 pre-registration contracts 106, 110 members 27, 44, 141, 168 officers 176, 194 superseded common law 106–107 as owners 141–152 company secretary 179–180 under Corporations Act 107 limit on members’ rights 151–152 directors 177–179 preference shares 258–259, 270 membership 143 senior managers 180 Presidential Security Services Pty Ltd v recording membership 143–151 officers types by standards of care Brilley (2008) 134 register of 143–145 chair 208–209 primary issue 255 members’ guarantee 54, 73 executive director 207–208 primary liability 131–132 members’ interests 230 managing director/chief executive priority of security interests 265 members’ meeting officer 209 producer cooperatives 31 adjourned meetings 154 non-executive director 208 professional indemnity cover 243 agenda 159–160 officers’ duties 199–203 profile statement 290–291, 304 calling a meeting 154–159 duties under common law and equity promoters 100, 110 chair 161 200–201 disclosure 103–105 class meetings 153 duties under Corporations Act duties and liabilities of 101–105 irregularities 163–164 201–202 identifying 100–101 minutes of 160 interaction of general law and proper performance of duties — s 129(4) notice of 158–159 statutory duties 202 130

Pdf_Folio:394

394 INDEX i i

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proper purpose 233–235, 247 recovery of secret profit 105, 110 separate legal entity 61–63 breach of duty of 233–234 redeemable preference shares 258, 270 settlor 21, 44 defences for breach of 234–235 refusal to register transfer 150–151 Shamsallah Holdings Pty v CBD property available to liquidator Regal (Hastings) Ltd v Gulliver (1967) Refrigeration and Airconditioning 351–356 237, 239 Services Pty Ltd (2001) 314 defences for creditors 356 register of members 143–145, 168 share 254, 270 types of voidable transactions related party 242, 247 definition of 254–255 352–356 relation back day 351, 359 issues 255–256 voidable transactions see voidable remedies 105, 111, 310–312, 325 statutory power to issue 256–257 transactions and penalties, for breach of duty 244 types of 257–260 property, of partnership 15 for breach 105–106 share certificates 146–148, 168 proprietary companies 28, 51, 73, 143, for breach of statutory contract 91 share issue 255, 270 243 replaceable rules 79, 95 vs. sale of shares 255f convert between public and 57 rescission of contract 105, 111 shareholders 6, 44, 141, 155 prospectus 289, 304 resolution 152, 168, 185–187, 194 shareholders’ request 154 proxy 161–163, 168 retain discretions 201, 222 shelf company 60, 73 proxy rules 163f retirement 16 short-form prospectus 290, 304 public companies 28, 52, 73, 243 of trustee 26 single director/shareholder proprietary conversion between proprietary and rights of trustees 25 companies 81 57 Romalpa clause 267, 270 rules for appointment of directors 82 public interest 316 Royal Automobile Club of Queensland special rule for 82 purchasing cooperatives 31 (RACQ) 32 small proprietary company 52, 73 Royal British Bank v Turquand (1986) Smith, Stone & Knight Ltd v Birmingham Queensland Bacon Pty Ltd v Rees (1996) 126 Corporation (1939) 68 218 rules of company, changing 91 soft law 274–276 Queensland Mines Ltd v Hudson (1978) application of changes to existing sole trader 6–10 239 members 93 advantages of being 9 quorum 160–161, 168, 185, 194 entrenched provisions 93 business structure 8f process to change the constitution 92 defined 8–9, 44 R v Firns (2001) 297 purpose and fairness of change disadvantages of being 9 R v Mansfield (2011) 301 92–93 special resolution 159, 168 RACQ see Royal Automobile Club of specific disclosure 274, 304 Queensland S and Y Investments (No. 2) Pty Ltd (in specific liability provisions 292–293 Re Bright Pine Mills Pty Ltd (1969) liquidation) v Commercial Union stakeholder theory 173–174, 194 314 Assurance Company of Australia Standard Chartered Bank of Australia Re Clifton Springs Hotel Ltd (1939) Ltd (1986) 134 Ltd v Antico (1995) 178 145 sale of shares 255, 270 standard of care Re Compaction Systems Pty Ltd (1976) Salomon v Salomon & Co Ltd (1896) by types of officers 207–209 164 62 minimum 206–207 Re Darby (1911) 67 Salomon v Salomon & Co Ltd (1897) State of South Australia v Marcus Clark Re Molopo Energy Ltd: Molopo Energy 65, 104 (1996) 239 Ltd v Keybridge Capital Ltd (2014) Sanford v Sanford Courier Service Pty statutory assumptions, company 157 Ltd (1986) 315 assumptions made 128–131 Re Overton Holdings Pty Ltd (1985) scope of directors’ duties 64 entitlement to make 128 315 Scottish Co-operative Society v Meyer statutory contract 322 Re Tivoli Freeholds Ltd (1972) 317 (1959) 232 statutory demand 331, 343, 359 Re Totex-Adon Ltd (1980) 155 secondary issue 255 statutory derivative action 319–321, reasonable director test 205, 222 Section 131(1) — ratification 107–108 325 receiver 331, 333, 343 Section 131(2) — promoter liability court will grant leave to bring receivership 331, 343 108 320–321 appointment of 332 Section 131(3) — recovering against on behalf of the company 319–320 duties and liabilities of 336–337 company 108 statutory duties 14, 44 effects of 333 Section 131(4) —damages for which the statutory provisions, relating to conflict powers of 336 company is liable 108 of interest 240–243 role of 333–335 secured loan 262, 270 defences 242–243 termination of 337 secured party 265 related party transactions 241–242 recording membership security agreement 265 statutory remedies Clearing House Electronic Subregister security for debts oppression remedy 312–316 System (CHESS) 149–150 circulating security interest 265–266 statutory injunction 317–319 correcting the register of members negative pledges 266 winding up a company 316–317 145–146 non-circulating security interest statutory rights 310 refusal to register transfer 150–151 265–266 stewardship 174 register of members 143–145 reason for distinction 266 strict liability 134, 137 share certificates 146–148 registration of security 264–265 subsidiary 63, 73 transfer of shares unlisted company Romalpa clause 267 substantive authority 119, 137 149 voidable antecedent transactions 267 actual authority 120–122 transferability of shares 148–149 security interest 264 apparent authority 122–124 transmission of shares 151 senior managers 180, 194 superannuation fund 21

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INDEX 395 i i

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supply of goods and services, debts liabilities of 25 unreasonable director-related 216 powers concerning trust property transactions 355 Swansson v RA Pratt Pty Ltd (2002) 25–26 voluntary administration 337, 343 321 removal of 26 appointment of 338 replacing 26–27 deed of company arrangement 341 Tax File Number (TFN) 77 retirement of 26 duties and liabilities of 339–340 Taxation Administration Act 67 rights of 25 effects of 339 Taxation Administration Act 1953 (Cth) two-part corporate bond prospectus powers of 339 66 290, 304 process of 340–341 taxation of dividends 166 role of 339 tenants-in-common 19, 44 ultra vires 86, 95 termination of 341 Topfelt Pty Ltd v State Bank of New uncommercial transactions 353–354 voluntary administrator 337, South Wales (1994) 331 unfair loans 354–355 343/span> tort 132, 137 unfair preferences 353 voluntary winding up Tracy v Mandalay Pty Ltd (1953) 101 unit trust 22, 44 creditors’ 348–349 trading cooperative 30, 44 unlimited company 27, 54, 73 members’ 348 transactions discharging liability of unlimited liability 8, 44 related entities 355 unlisted company 28, 52, 73 Wayde v New South Wales Rugby League transferability of shares 148–149 unreasonable director-related Ltd (1985) 313 transmission of shares 151 transactions 355 Whitehouse v Carlton Hotel Pty Ltd transparency 174 (1987) 234 trust 6, 20–27, 44 vicarious liability 132, 137 wholly owned subsidiary 63, 73 advantages of 21 voidable transactions 351, 359 wide ultra vires 125–126 basic structure 20f insolvent transaction 352–353 winding up 346–349, 359 defined 20–21 invalid circulating security interest compulsory 349 disadvantages of 22 charges 355–356 voluntary 348–349 types of 22–24 transactions discharging liability of winding up a company 316–317 trustees 21, 44 related entities 355 workers’ cooperatives 31 administrative issues for 26–27 transactions for the purpose of appointment of original and new 26 defeating creditors 354 Zhen Yun (Aust) Pty Ltd v State Bank of changes to 26–27 uncommercial transactions 353–354 South Australia (1994) 331 death of sole 26 unfair loans 354–355 duties of 24–25 unfair preferences 353

Pdf_Folio:396

396 INDEX i i

i i