Commonwealth Consolidated Acts Commonwealth Consolidated ActsAct No. 61 of 1998 as amended
This compilation was prepared on 1 November 2005
[This Act was amended by Act No. 63 of 1998 and
Act No. 156 of 1999]
Amendment from Act No. 63 of 1998
[Schedule 7 (item 1) amended subsection 2(5)
Schedule 7 (item 1) commenced on 1 July 1998]
Amendment from Act No. 156 of 1999
[Schedule 9 (item 1)
repealed and substituted the heading
preceding Item 1 of Schedule 4
Schedule 9 (item 1) commenced on 29 June 1998]
Prepared by the Office of
Legislative Drafting and Publishing,
Attorney-General's Department,
Canberra
Contents
1............ Short title etc. [see Note 1] ................................................................. 1
2............ Commencement [see Note 1] .............................................................. 1
3............ Schedules ............................................................................................ 1
Schedule 1--Main amendments of the Corporations Law 2
Part 1.5--Small business guide 2
4............ Continuing obligations after the company is set up ......................... 10
5............ Company directors and company secretaries ................................... 12
6............ Shares and shareholders .................................................................... 15
7............ Signing company documents ............................................................ 17
8............ Funding the company's operations .................................................. 17
9............ Returns to shareholders .................................................................... 18
10.......... Annual financial reports and audit .................................................... 19
11.......... Disagreements within the company ................................................. 20
12.......... Companies in financial trouble ......................................................... 21
Chapter 2A--Registering a company 23
Part 2A.1--What companies can be registered 23
112........ Types of companies ......................................................................... 23
113........ Proprietary companies ..................................................................... 24
114........ Minimum of 1 member ..................................................................... 25
115........ Restrictions on size of partnerships and associations ...................... 25
116........ Trade unions cannot be registered .................................................... 26
Part 2A.2--How a company is registered 26
117........ Applying for registration .................................................................. 26
118........ ASC gives company ACN, registers company and issues certificate 27
119........ Company comes into existence on registration ................................ 28
120........ Members, directors and company secretary of a company ............. 28
121........ Registered office ............................................................................... 29
122........ Expenses incurred in promoting and setting up company ................ 29
123........ Company may have common seal .................................................... 29
Chapter 2B--Basic features of a company 30
Part 2B.1--Company powers and how they are exercised 30
124........ Legal capacity and powers of a company ........................................ 30
125........ Constitution may limit powers and set out objects ......................... 30
126........ Agent exercising a company's power to make contracts .................. 31
127........ Execution of documents (including deeds) by the company itself ... 31
Part 2B.2--Assumptions people dealing with companies are entitled to make 32
128........ Entitlement to make assumptions .................................................... 32
129........ Assumptions that can be made under section 128 ........................... 32
130........ Information available to the public from the ASC does not constitute constructive notice 34
Part 2B.3--Contracts before registration 34
131........ Contracts before registration ............................................................ 34
132........ Person may be released from liability but is not entitled to indemnity 35
133........ This Part replaces other rights and liabilities .................................... 35
Part 2B.4--Replaceable rules and constitution 36
134........ Internal management of companies ................................................... 36
135........ Replaceable rules .............................................................................. 36
136........ Constitution of a company ............................................................... 37
137........ Date of effect of adoption, modification or repeal of constitution ... 38
138........ ASC may direct company to lodge consolidated constitution ......... 38
139........ Company must send copy of constitution to member ..................... 38
140........ Effect of constitution and replaceable rules ...................................... 39
141........ Table of replaceable rules ................................................................. 39
Part 2B.5--Registered office and places of business 41
142........ Registered office ............................................................................... 41
143........ ASC may change address of registered office to a director's address 42
144........ Company's name must be displayed at registered office etc. .......... 42
145........ Opening hours of registered office of public company .................... 42
146........ Change of address of principal place of business ............................. 43
Part 2B.6--Names 43
Division 1--Selecting and using a name 43
147........ When a name is available .................................................................. 43
148........ A company's name ........................................................................... 44
149........ Acceptable abbreviations .................................................................. 45
150........ Exception to requirement for using "Limited" in name .................... 45
151........ Exception to requirement for using "Limited" in name-- pre-existing licences 46
152........ Reserving a name .............................................................................. 46
153........ Using a name and ACN on documents ............................................. 47
154........ Exception to requirement to have ACN on receipts ......................... 47
155........ Regulations may exempt from requirement to set out information on documents 47
156........ Carrying on business using "Limited", "No Liability" or "Proprietary" in name 48
Division 2--Changing a company's name 48
157........ Company changing its name ............................................................. 48
158........ ASC's power to direct company to change its name ....................... 48
159........ ASC's power to include "Limited" in company's name .................. 49
160........ ASC must issue new certificate if company's name changes ........... 49
161........ Effect of name change ....................................................................... 49
Part 2B.7 Changing company type 50
162........ Changing company type ................................................................... 50
163........ Applying for change of type ............................................................ 52
164........ ASC changes type of company ........................................................ 54
165........ ASC may direct a proprietary company to change to a public company in certain circumstances 55
166........ Effect of change of type ................................................................... 56
167........ Issue of shares by company or holding company--company limited by guarantee changing to company limited by shares ................................................................................................ 57
Chapter 2F--Members' rights and remedies 58
246A..... Membership of a company .............................................................. 58
Part 2F.1--Oppression 58
Part 2F.2--Class rights 58
246B..... Varying and cancelling class rights .................................................... 58
246C..... Certain actions taken to vary rights etc. ........................................... 59
246D..... Variation, cancellation or modification without unanimous support of class 61
246E...... Variation, cancellation or modification with unanimous support of class 62
246F...... Company must lodge documents and resolutions with the ASC ..... 62
246G..... Member's copies of documents and resolutions .............................. 63
Part 2F.3--Inspection of books 63
247A..... Order for inspection of books of company or registered managed investment scheme 63
247B..... Ancillary orders ................................................................................ 64
247C..... Disclosure of information acquired in inspection ............................. 64
247D..... Company or directors may allow member to inspect books (replaceable rule see section 135) 64
Chapter 2G--Meetings 64
Part 2G.1--Directors' meetings 64
Division 1--Resolutions and declarations without meetings 64
248A..... Circulating resolutions of companies with more than 1 director (replaceable rule see section 135) 64
248B..... Resolutions and declarations of 1 director proprietary companies .. 65
Division 2--Directors' meetings 65
248C..... Calling directors' meetings (replaceable rule see section 135) ......... 65
248D..... Use of technology ............................................................................. 66
248E...... Chairing directors' meetings (replaceable rule see section 135) ....... 66
248F...... Quorum at directors' meetings (replaceable rule see section 135) ... 66
248G..... Passing of directors' resolutions (replaceable rule see section 135) 66
Part 2G.2--Meetings of members of companies 67
Division 1--Resolutions without meetings 67
249A..... Circulating resolutions of proprietary companies with more than 1 member 67
249B..... Resolutions of 1 member companies ................................................ 68
Division 2--Who may call meetings of members 68
249C..... Calling of meetings of members by a director (replaceable rule--see section 135) 68
249CA.. Calling of meetings of members of a listed company by a director .. 68
249D..... Calling of general meeting by directors when requested by members 69
249E...... Failure of directors to call general meeting ........................................ 69
249F...... Calling of general meetings by members ........................................... 70
249G..... Calling of meetings of members by the Court .................................. 70
Division 3--How to call meetings of members 71
249H..... Amount of notice of meetings .......................................................... 71
249HA.. Amount of notice of meetings of listed company ............................ 71
249J...... Notice of meetings of members to members and directors ............... 72
249K..... Auditor entitled to notice and other communications ...................... 73
249L...... Contents of notice of meetings of members ..................................... 73
249M.... Notice of adjourned meetings (replaceable rule--see section 135) .. 73
Division 4--Members' rights to put resolutions etc. at general meetings 74
249N..... Members' resolutions ....................................................................... 74
249O..... Company giving notice of members' resolutions ............................. 74
249P...... Members' statements to be distributed ............................................ 75
Division 5--Holding meetings of members 76
249Q..... Purpose ............................................................................................. 76
249R..... Time and place for meetings of members ......................................... 76
249S...... Technology ....................................................................................... 76
249T..... Quorum (replaceable rule--see section 135) .................................... 77
249U..... Chairing meetings of members (replaceable rule--see section 135) . 77
249V..... Auditor's right to be heard at general meetings ................................ 78
249W.... Adjourned meetings .......................................................................... 78
Division 6--Proxies and body corporate representatives 79
249X..... Who can appoint a proxy (replaceable rule for proprietary companies and mandatory rule for public companies--see section 135) ....................................................................................... 79
249Y..... Rights of proxies ............................................................................... 79
249Z..... Company sending appointment forms or lists of proxies must send to all members 80
250A..... Appointing a proxy .......................................................................... 80
250B..... Proxy documents .............................................................................. 82
250BA.. Proxy documents--listed companies ............................................... 82
250C..... Validity of proxy vote ...................................................................... 83
250D..... Body corporate representative ......................................................... 83
Division 7--Voting at meetings of members 84
250E...... How many votes a member has (replaceable rule--see section 135) 84
250F...... Jointly held shares (replaceable rule--see section 135) ................... 85
250G..... Objections to right to vote (replaceable rule--see section 135) ....... 85
250H..... Votes need not all be cast in the same way ...................................... 85
250J...... How voting is carried out (replaceable rule--see section 135) ........ 85
250K..... Matters on which a poll may be demanded ...................................... 86
250L...... When a poll is effectively demanded ................................................ 86
250M.... When and how polls must be taken (replaceable rule--see section 135) 86
Division 8--AGMs of public companies 87
250N..... Public company must hold AGM .................................................... 87
250P...... Extension of time for holding AGM ................................................. 87
250R..... Business of AGM ............................................................................ 88
250S...... Questions and comments by members on company management at AGM 88
250T..... Questions by members of auditors at AGM .................................... 88
Part 2G.3--Minutes and members' access to minutes 88
251A..... Minutes ............................................................................................ 88
251AA.. Disclosure of proxy votes--listed companies .................................. 89
251B..... Members' access to minutes ............................................................ 90
Part 2G.4--Meetings of members of registered managed investment schemes 91
Division 1--Who may call meetings of members 91
252A..... Calling of meetings of members by responsible entity ..................... 91
252B..... Calling of meetings of members by responsible entity when requested by members 91
252C..... Failure of responsible entity to call meeting of the scheme's members ................... 92
252D..... Calling of meetings of members by members ................................... 93
252E...... Calling of meetings of members by the Court .................................. 93
Division 2--How to call meetings of members 94
252F...... Amount of notice of meetings .......................................................... 94
252G..... Notice of meetings of members to members, directors and auditors 94
252H..... Auditors entitled to other communications ...................................... 95
252J...... Contents of notice of meetings of members ..................................... 95
252K..... Notice of adjourned meetings ........................................................... 95
Division 3--Members' rights to put resolutions etc. at meetings of members 96
252L...... Members' resolutions ....................................................................... 96
252M.... Responsible entity giving notice of members' resolutions ............... 96
252N..... Members' statements to be distributed ............................................ 97
Division 4--Holding meetings of members 98
252P...... Time and place for meetings of members ......................................... 98
252Q..... Technology ....................................................................................... 98
252R..... Quorum ............................................................................................. 99
252S...... Chairing meetings of members .......................................................... 99
252T..... Auditors' right to be heard at meetings of members ....................... 100
252U..... Adjourned meetings ........................................................................ 100
Division 5--Proxies and body corporate representatives 100
252V..... Who can appoint a proxy ............................................................... 100
252W.... Rights of proxies ............................................................................. 101
252X..... Responsible entity sending appointment forms or lists of proxies must send to all members 101
252Y..... Appointing a proxy ........................................................................ 102
252Z..... Proxy documents ............................................................................ 103
253A..... Validity of proxy vote .................................................................... 104
253B..... Body corporate representative ....................................................... 105
Division 6--Voting at meetings of members 105
253C..... How many votes a member has ...................................................... 105
253D..... Jointly held interests ...................................................................... 106
253E...... Responsible entity and associates cannot vote if interested in resolution 106
253F...... How to work out the value of an interest ....................................... 106
253G..... Objections to a right to vote ........................................................... 107
253H..... Votes need not all be cast in the same way .................................... 107
253J...... How voting is carried out ............................................................... 107
253K..... Matters on which a poll may be demanded .................................... 107
253L...... When a poll is effectively demanded .............................................. 108
Division 7--Minutes and members' access to minutes 108
253M.... Minutes .......................................................................................... 108
253N..... Members' access to minutes .......................................................... 109
Chapter 2H--Shares 109
254AA.. Shares to have nominal value .......................................................... 109
Part 2H.1--Issuing and converting shares 110
254A..... Power to issue bonus, partly-paid, preference and redeemable preference shares 110
254B..... Terms of issue ................................................................................ 110
254CA.. Nominal value of shares issued after registration ........................... 112
254CB... Share premium ................................................................................ 112
254CC... Issue of shares at a discount ........................................................... 113
254D..... Pre-emption for existing shareholders on issue of shares in proprietary company (replaceable rule--see section 135) ........................................................................................................ 114
254E...... Court validation of issue ................................................................. 115
254F...... Bearer shares and stock must not be issued ................................... 115
254G..... Conversion of shares ...................................................................... 115
254H..... Resolution to convert shares into larger or smaller number ............ 116
Part 2H.2--Redemption of redeemable preference shares 117
254J...... Redemption must be in accordance with terms of issue ................. 117
254K..... Other requirements about redemption ............................................ 117
254L...... Consequences of contravening section 254J or 254K .................... 118
Part 2H.3--Partly-paid shares 118
254M.... Liability on partly-paid shares ....................................................... 118
254N..... Calls may be limited to when company is externally‑administered 118
254P...... No liability companies--calls on shares ......................................... 119
254Q..... No liability companies--forfeiture and sale of shares for failure to meet call 119
254R..... No liability companies--redemption of forfeited shares ............... 122
Part 2H.4--Capitalisation of profits 122
254S...... Capitalisation of profits (replaceable rule--see section 135) ........ 122
Part 2H.5--Dividends 123
254T..... Dividends to be paid out of profits ................................................ 123
254U..... Other provisions about paying dividends (replaceable rule--see section 135) 123
254V..... When does the company incur a debt? ........................................... 123
254W.... Dividend rights ............................................................................... 124
Part 2H.6--Notice requirements 124
254X..... Notice to ASC of share issue .......................................................... 124
254Y..... Notice to ASC of share cancellation ............................................... 125
Chapter 2J--Transactions affecting share capital 126
Part 2J.1--Share capital reductions and share buy-backs 126
Division 1--Reductions in share capital not otherwise authorised by law 126
256A..... Reductions in share capital ............................................................. 126
256B..... Court order confirming the reduction ............................................. 127
256C..... The creditor protection test ............................................................ 127
256D..... Putting the capital reduction into effect ......................................... 129
256E...... Effect of reduction of share capital on members and former members 130
256F...... Consequences of failing to comply with section 256A .................. 131
Division 2--Share buy-backs 131
257AA.. Purpose ........................................................................................... 131
257A..... The company's power to buy back its own shares ....................... 132
257B..... Buy-back procedure--general ........................................................ 132
257C..... Buy-back procedure--shareholder approval if the 10/12 limit exceeded 135
257D..... Buy-back procedure--special shareholder approval for selective buy-back 135
257E...... Buy-back procedure--lodgment of offer documents with the ASC 136
257F...... Notice of intended buy-back .......................................................... 137
257G..... Buy-back procedure--disclosure of relevant information when offer made 137
257H..... Acceptance of offer and transfer of shares to the company ........... 137
257J...... Signposts to other relevant provisions ........................................... 138
Division 3--Other share capital reductions 139
258A..... Unlimited companies ...................................................................... 139
258B..... Right to occupy or use real property ............................................. 140
258C..... Brokerage or commission ................................................................ 140
258D..... Cancellation of forfeited shares ...................................................... 140
258E...... Other authorised reductions ........................................................... 140
258F...... Reductions because of lost capital .................................................. 141
Part 2J.2--Self-acquisition and control of shares 141
259A..... Directly acquiring own shares ........................................................ 141
259B..... Taking security over own shares or shares in holding company .... 141
259C..... Issuing or transferring shares to controlled entity .......................... 142
259D..... Company controlling entity that holds shares in it ........................ 143
259E...... When a company controls an entity ............................................... 144
259F...... Consequences of failing to comply with section 259A or 259B .... 145
Part 2J.3--Financial assistance 145
260A..... Financial assistance by a company for acquiring shares in the company or a holding company 145
260B..... Shareholder approval ...................................................................... 146
260C..... Exempted financial assistance ......................................................... 148
260D..... Consequences of failing to comply with section 260A .................. 149
Part 2J.4--Interaction with general directors' duties 150
260E...... General duties still apply ............................................................... 150
Chapter 2M--Financial reports and audit 150
Part 2M.1--Overview 150
285........ Overview of obligations under this Chapter ................................... 150
Part 2M.2--Financial records 152
286........ Obligation to keep financial records ............................................... 152
287........ Language requirements .................................................................... 152
288........ Physical format ............................................................................... 153
289........ Place where records are kept .......................................................... 153
290........ Director access ................................................................................ 153
291........ Signposts to other relevant provisions ........................................... 154
Part 2M.3--Financial reporting 155
Division 1--Annual financial reports and directors' reports 155
292........ Who has to prepare annual financial reports and directors' reports 155
293........ Small proprietary company--shareholder direction ...................... 155
294........ Small proprietary company--ASC direction ................................. 156
295........ Contents of annual financial report ................................................ 156
296........ Compliance with accounting standards and regulations ................. 158
297........ True and fair view ........................................................................... 158
298........ Annual directors' report ................................................................. 158
299........ Annual directors' report--general information .............................. 159
300........ Annual directors' report--specific information ............................. 160
300A..... Annual directors' report--specific information to be provided by listed companies 164
301........ Audit of annual financial report ...................................................... 165
Division 2--Half-year financial report and directors' report 165
302........ Disclosing entity must prepare half-year financial report and directors' report 165
303........ Contents of half-year financial report ............................................ 166
304........ Compliance with accounting standards and regulations ................. 167
305........ True and fair view ........................................................................... 167
306........ Half-year directors' report ............................................................. 167
Division 3--Audit and auditor's report 168
307........ Audit ............................................................................................... 168
308........ Auditor's report on annual financial report .................................... 168
309........ Auditor's report on half-year financial report ................................ 169
310........ Auditor's power to obtain information .......................................... 170
311........ Reporting to ASC ........................................................................... 170
312........ Assisting auditor ............................................................................. 170
313........ Special provisions on audit of borrowing corporations and guarantor bodies 171
Division 4--Annual financial reporting to members 172
314........ Annual financial reporting to members ........................................... 172
315........ Deadline for reporting to members ................................................. 173
316........ Member's choices for annual financial information ........................ 173
317........ Consideration of reports at AGM .................................................. 174
318........ Additional reporting by debenture issuers ..................................... 174
Division 5--Lodging reports with the ASC 175
319........ Lodgment of annual reports with the ASC ..................................... 175
320........ Lodgment of half-year reports with the ASC ................................. 176
321........ ASC power to require lodgment ..................................................... 176
322........ Relodgment if financial statements or directors' reports amended after lodgment 177
Division 6--Special provisions about consolidated financial statements 177
323........ Directors and officers of controlled entity to give information ...... 177
323A..... Auditor's power to obtain information from controlled entity ...... 177
323B..... Controlled entity to assist auditor .................................................. 178
323C..... Application of Division to entity that has ceased to be controlled 178
Division 7--Financial years and half-years 178
323D..... Financial years and half-years ........................................................ 178
Division 8--Disclosure by listed companies of information filed overseas 179
323DA.. Listed companies to disclose information filed overseas ................ 179
Part 2M.5--Accounting standards 180
334........ Accounting standards ..................................................................... 180
335........ Equity accounting ........................................................................... 181
336........ Comparative amounts ..................................................................... 181
337........ Interpretation of accounting standards ........................................... 181
338........ Severing invalid provisions ............................................................. 181
339........ Evidence of text of accounting standard ......................................... 181
Part 2M.6--Exemptions and modifications 182
340........ ASC's power to make specific exemption orders .......................... 182
341........ ASC's power to make class orders ................................................. 182
342........ Criteria for specific exemption orders and class orders .................. 183
343........ Modification by regulations ........................................................... 184
Part 2M.7--Sanctions for contraventions of Chapter 184
344........ Contravention of Part 2M.2 or 2M.3 ............................................. 184
Chapter 2N--Annual returns and lodgments with the ASC 185
Part 2N.1--Annual returns 185
345........ Deadline for lodging annual return .................................................. 185
346........ Solvency resolution--companies ................................................... 186
347........ Lodging annual return with ASC .................................................... 186
348........ Contents of annual return--companies .......................................... 186
349........ Contents of annual return--registered schemes ............................. 188
Part 2N.2--Lodgments with ASC 189
350........ Forms for documents to be lodged with ASC ................................ 189
351........ Signing documents lodged with ASC .............................................. 189
352........ Documents lodged with ASIC electronically .................................. 190
Chapter 5A--Deregistration of companies 190
601AA.. Deregistration--voluntary .............................................................. 190
601AB.. Deregistration--ASC initiated ........................................................ 191
601AC.. Deregistration--following amalgamation or winding up ................ 192
601AD.. Effect of deregistration ................................................................... 193
601AE... What the ASC does with the property .......................................... 194
601AF... ASC's power to fulfil outstanding obligations of deregistered company 195
601AG.. Claims against insurers of deregistered company ........................... 195
601AH.. Reinstatement ................................................................................. 195
Chapter 5B--Bodies corporate registered as companies, and registrable bodies 197
Part 05B.1--Registering a body corporate as a company 197
Division 1--Registration 197
601BA.. Bodies corporate may be registered as certain types of companies 197
601BB... Bodies registered as proprietary companies ................................... 197
601BC... Applying for registration under this Part ....................................... 198
601BD.. ASC gives body ACN, registers as company and issues certificate 201
601BE... Registered office ............................................................................. 202
601BF... Name ............................................................................................... 202
601BG.. Constitution .................................................................................... 202
601BH.. Modifications of constitution ......................................................... 202
601BJ.... ASC may direct company to apply for Court approval for modifications of constitution 203
601BK.. Establishing registers and minute books ......................................... 203
601BL... Registration of registered bodies ..................................................... 203
Division 2--Operation of the Corporations Law 204
601BM. Effect of registration under this Part .............................................. 204
601BN.. Liability of members on winding up ............................................... 204
601BP... Bearer shares ................................................................................... 204
601BR... First AGM ..................................................................................... 205
601BS... Modification by regulations ........................................................... 205
Part 5B.3--Names of registrable Australian bodies and foreign companies 205
601DA.. Reserving a name ............................................................................ 205
601DB.. Acceptable abbreviations ................................................................ 206
601DC.. When a name is available ................................................................ 206
601DD.. Registered Australian bodies and registered foreign companies can carry on business with some names only 207
601DE... Using a name and ARBN ................................................................ 207
601DF... Exception to requirement to have ARBN on receipts .................... 208
601DG.. Regulations may exempt from requirement to set out information on documents 208
601DH.. Notice of name change must be given to the ASC .......................... 208
601DJ... ASC's power to direct a registered name be changed ..................... 209
Chapter 10--National scheme provisions 210
1362A... Recognition of companies from other jurisdictions ........................ 210
1362B... Transfer of registration ................................................................... 210
1362BA Compensation for compulsory acquisition .................................... 210
Chapter 11--Application and transitional provisions 211
Part 11.1--Introduction of the Corporations Law 211
1362CA Existing company ........................................................................... 211
1362CB. Existing company taken to be registered under the Corporations Law 212
1362CC. Constitution of existing company .................................................. 212
1362CD Application of Law to existing companies ..................................... 213
1362CE. Acts preparatory to external administration of existing company . 213
1362CF. Appointments of receivers ............................................................. 214
1362CG Application of Division 2 of Part 5.6 ............................................. 214
1362CH Reinstatement of companies deregistered before commencement .. 214
1362CJ.. Registrable Australian bodies and foreign companies ..................... 215
Division 10--Changes resulting from the Company Law Review Act 1998 216
1412...... Meaning of commencement, new Law and old Law ....................... 216
1413...... Registration--existing companies continue to be registered ........... 216
1414...... Registration--application orders under subsection 112(3) of the old Law 216
1415...... Basic features of a company--memorandum and articles are taken to be constitution 217
1416...... Basic features of a company--companies limited both by shares and by guarantee 217
1417...... Basic features of a company--acts before external administration of existing company 217
1418...... Basic features of a company--registered office ............................. 218
1419...... Basic features of a company--opening hours of registered office of public company 218
1420...... Basic features of a company--name, reservation of name and ACN continues 218
1421...... Members' rights and remedies--applications for inspection orders under repealed provisions 219
1422...... Meetings--AGM before commencement ...................................... 219
1423...... Meetings--first AGM for companies incorporated before commencement 219
1424...... Meetings--general transitional arrangements ................................. 219
1425...... Nominal value ................................................................................. 221
1426...... Share capital--calls on partly-paid shares ..................................... 221
1427...... Share capital--provisions in constitution about amount of share capital and division into shares 221
1428...... Share capital--conversion of stock into shares .............................. 222
1429...... Share capital--previous Law continues to apply to capital reductions initiated before commencement 223
1430...... Share capital--continued operation of other repealed provisions .. 223
1431...... Financial reports and audit--application of Chapter 2M to periods that end after commencement, and continued application of repealed provisions to past periods ........................ 223
1432...... Financial reports and audit--lodgment of accounts by public companies that are not disclosing entities 224
1433...... Financial reports and audit--continued operation of accounting standards 224
1434...... Financial reports and audit--continued operation of exemption orders 225
1435...... Annual returns--solvency resolution ............................................. 225
1436...... Annual returns--application of annual return provisions .............. 225
1437...... Deregistration--previous Law continues to apply to deregistrations initiated before commencement 226
1438...... Deregistration--property vested in ASC under previous laws ..... 226
1439...... Deregistration--reinstatement of registration where application under section 571 or subsection 574(3) made before commencement ............................................................................... 226
1440...... Deregistration--deregistration of companies dissolved under the State Bank (Corporatisation) Act 1994 of South Australia ......................................................................................... 227
1441...... Accounting standards made under section 32 of the Corporations Act 1989 227
1442...... References in State laws and other documents ............................... 227
Schedule 2--Consequential amendment of the Corporations Law 228
Part 1--Registering a company (new Chapter 2A) Basic features of a company (new Chapter 2B) Members' rights and remedies (new Chapter 2F) 228
109X..... Service of documents ...................................................................... 235
224B..... Single director/shareholder proprietary companies ........................ 237
224C..... Company may appoint a director (replaceable rule--see section 135) ................... 238
224D..... Directors may appoint other directors (replaceable rule--see section 135) 238
226A..... Powers of directors (replaceable rule--see section 135) ................ 239
226B..... Negotiable instruments (replaceable rule--see section 135) .......... 239
226C..... Managing director (replaceable rule--see section 135) .................. 240
226D..... Delegation to committees (replaceable rule--see section 135) ...... 240
226E...... Removal by members--proprietary companies (replaceable rule--see section 135) 240
227A..... Director may resign by giving written notice to company (replaceable rule--see section 135) 241
236A..... Remuneration of directors (replaceable rule--see section 135) ..... 242
242........ Notice of name and address of directors and secretaries to ASC ... 244
242AA.. Address for officers ........................................................................ 244
524........ Past member of former limited company ....................................... 249
Part 2--Meetings (new Chapter 2G) 256
161........ Section 9 ......................................................................................... 256
162........ Section 9 (definition of annual general meeting) ............................ 256
163........ Section 9 ......................................................................................... 256
164........ Section 9 ......................................................................................... 256
52A....... Signing ............................................................................................. 257
225A..... Alternate directors (replaceable rule--see section 135) ................. 258
Part 3--Shares (new Chapter 2H) Transactions affecting share capital (new Chapter 2J) 263
1091AA Transmission of shares on death (replaceable rule--see section 135) 270
1091AB Transmission of shares on bankruptcy (replaceable rule--see section 135) 271
1091B... Transmission of shares on mental incapacity (replaceable rule--see section 135) 272
1091D... Registration of transfers (replaceable rule--see section 135) ........ 272
1091E.... Additional general discretion for directors of proprietary companies to refuse to register transfers (replaceable rule--see section 135) ............................................................................... 273
Part 4--Financial reports and audit (new Chapter 2M) 276
111AO.. Accounting requirements ................................................................ 280
325........ Appointment of auditor by proprietary company ........................ 282
Part 7.5--Dealers' financial statements and audit 285
Part 8.5--Financial statements and audit 289
Part 5--Annual returns and ASC lodgments (new Chapter 2N) 292
1355...... Doing act without payment of fee .................................................. 293
Part 6--Deregistration of companies (new Chapter 5A) 293
Schedule 3--Amendment of the Corporations Law to relocate provisions and make other structural changes 299
Chapter 2C--Registers 302
Chapter 2D--Officers 304
Chapter 2E--Financial benefits to related parties 304
Part 2E.1--Object and outline of Part 304
Part 2E.2--The meaning of expressions 305
Part 2E.3--The prohibitions 305
Part 2E.4--General exceptions 305
Part 2E.5--Financial benefits approved by general meeting of public company 306
Division 1--Exceptions from the prohibitions 306
Division 2--Conditions to be satisfied 307
Part 2E.6--Enforcement 307
Chapter 2K--Charges 308
Part 2K.1--Preliminary 308
Part 2K.2--Registration 308
Part 2K.3--Order of priority 313
Part 2M.4--Auditor 314
Part 5B.2--Registrable bodies 315
Part 11.2--Commencement and application of certain changes to this Law 319
Schedule 4--Consequential amendment of other legislation 320
Australian Securities and Investments Commission Act 1989 320
Foreign Acquisitions and Takeovers Act 1975 321
Pooled Development Funds Act 1992 322
Service and Execution of Process Act 1992 324
Schedule 5--Amendments in relation to nominal value and share capital reductions 325
Corporations Law 325
254C..... No par value shares ........................................................................ 327
254H..... Resolution to convert shares into larger or smaller number ............ 328
254K..... Other requirements about redemption ............................................ 328
254S...... Capitalisation of profits ................................................................. 328
254T..... Dividends to be paid out of profits ................................................ 329
256A..... Purpose ........................................................................................... 329
256B..... Company may make reduction not otherwise authorised .............. 329
256C..... Shareholder approval ...................................................................... 330
256D..... Consequences of failing to comply with section 256B .................. 331
256E...... Signposts to other relevant provisions ........................................... 332
258E...... Other share cancellations ................................................................ 333
258F...... Reductions because of lost capital .................................................. 334
601BQ.. References in pre-registration contracts and other documents to par value in existing contracts and documents 334
Division 11--Changes resulting from Schedule 5 to the Company Law Review Act 1998 336
1443...... Meaning of commencement, new Law and old Law ....................... 336
1444...... Share capital--application of new no par value rule to shares issued before commencement 336
1445...... Share capital--references to amount paid on shares issued before commencement 336
1446...... Share capital--transfer of money in share premium account and capital redemption reserve into the share capital account ............................................................................................ 337
1447...... Share capital--use of amount standing to credit of share premium account 337
1448...... Share capital--calls on partly-paid shares ..................................... 337
1449...... Share capital--references in pre-commencement contracts and other documents to par value 337
1450...... Share capital--previous Law continues to apply to capital reductions initiated before commencement 338
233A..... Transfer by life insurance company to statutory fund .................. 339