CORPORATIONS ACT 2001 - SECT 198E Single director/shareholder proprietary companies
CORPORATIONS ACT 2001 - SECT 198E
Single director/shareholder proprietary companies(1) The director of a proprietary company who is its only director and only shareholder may exercise all the powers of the company except any powers that this Act or the company's constitution (if any) requires the company to exercise in general meeting. The business of the company is to be managed by or under the direction of the director.
Note: For example, the director may issue shares, borrow money and issue debentures.
(2) The director of a proprietary company who is its only
director and only shareholder may sign, draw, accept, endorse or otherwise
execute a negotiable instrument. The director may determine that a
negotiable instrument may be signed, drawn, accepted, endorsed or otherwise
executed in a different way.