Commonwealth Repealed Acts

This legislation has been repealed.

CORPORATIONS LAW- SECT 124

Legal capacity and powers of a company

 
 
(1)
A company has the legal capacity and powers of
an individual both in and outside this jurisdiction. A company also has all
the powers of a body corporate, including the power to: 
 
 
 
(a)
issue and cancel shares in the
company

(b)
issue debentures (despite any rule of law or equity to the
contrary, this power includes a power to issue debentures that are
irredeemable, redeemable only if a contingency, however remote, occurs, or
redeemable only at the end of a period, however long)

(c)
grant options over unissued shares in the company

(d)
distribute any of the company's property among the members, in
kind or otherwise

(e)
give security by charging uncalled capital

(f)
grant a floating charge over the company's property

(g)
arrange for the company to be registered or recognised as a body
corporate in any place outside this jurisdiction

(h)
do anything that it is authorised to do by any other law
(including a law of a foreign country). 

 
A company limited by guarantee does not have the power to issue
shares.
 
 Note: For a company's power to
issue bonus, partly-paid, preference and redeemable preference shares, see
section 254A. 


 
 
(2)
A company's legal capacity to do something
is not affected by the fact that the company's interests are not, or would not
be, served by doing it.