Write 3 page essay on the topic Organisation law—contracts and shares.
The legal text that regulates the various activities of companies across Australia is the Corporations Act 2001. the case law is also applicable on issues, which are not particularly regulated by the Australian law –especially the above legislative text –, or those which have been already examined and evaluated by the Courts.
At the first level, a company is a separate legal entity, which means that it has the responsibility of the actions developed in its name (Salomon v Salomon & Co , Ander Transport Pty Ltd v Brambles Ltd (2004). the individuals that participate in a company need to follow the rules set by the company law – the principles of common law may also be applicable. furthermore, the members of a company have to follow the rules included in the company’s constitution – which is considered as a contract between the company and its members (CA s140(1)). The company – as a legal entity – can enter contracts with individuals or other companies. however, the company is an artificial person and cannot enter a contract by itself. it is represented by individuals, board of directors or agents (Lennard’s Carrying Co v Asiatic Petroleum , Royal British Bank v Turquand (1856)). the contracts of companies with third parties (outsiders) are regulated in the section 129 of Corporations Act 2001. Because of its nature as a separate legal entity, a company can be held liable for the damages that have been caused to outsiders because of the violation of the terms of contracts signed between them and the particular company. however, the members and the officers of the firm may be hold liable for the amount paid as compensation or losses to outsiders – in the context described above – referring especially to the case that the damages to outsiders resulted by the unfair conduct of the company’s affairs.
In regard to the rights and the obligations