i i i “BMIndex_Final_print” — 2019/7/30 — 9:19 — page 391 — #1 i 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 Commonwealth Bank 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 Pdf_Folio:391 INDEX 391 i i i i i i i “BMIndex_Final_print” — 2019/7/30 — 9:19 — page 392 — #2 i 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 Sydney 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