Commonwealth Repealed Acts

This legislation has been repealed.

CORPORATIONS LAW- SECT 113

Proprietary companies

 
 
(1)
A company must have no more than 50
non-employee shareholders if it is to: 
 
 
 
(a)
be registered as a proprietary company; or

(b)
change to a proprietary company; or

(c)
remain registered as a proprietary company. 

 
 Note: Proprietary companies
have different financial reporting obligations depending on whether they are
small proprietary companies or large proprietary companies (see section 45A
and Part 2M.3). 


 
 
(2)
In applying subsection (1): 
 
 
 
(a)
count joint holders of a
particular parcel of shares as 1 person; and

(b)
an employee shareholder is: 

 
 
(i)
a
shareholder who is an employee of the company or of a subsidiary of the
company; or

(ii)
a shareholder who was an employee of the company, or of a
subsidiary of the company, when they became a shareholder. 

 
 
(3)
A proprietary company must not
engage in any activity that would require disclosure to investors under
Chapter 6D, except for an offer of its shares to: 
 
 
 
(a)
existing shareholders of the company;
or

(b)
employees of the company or of a subsidiary of the company.


 
 
(4)
An act or transaction is not invalid
merely because of a contravention of subsection (3). 
 
 
 Note: If a proprietary company contravenes this section,
ASIC may require it to change to a public company (see section 165).