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Corporations Act 2001

  • - C2005C00127
  • In force - Superseded Version
  • View Series
Act No. 50 of 2001 as amended, taking into account amendments up to Act No. 8 of 2005
An Act to make provision in relation to corporations and financial products and services, and for other purposes
Administered by: Attorney-General's; Treasury
General Comments: This compilation is affected by retrospective amendments. Please see the Treasury Laws Amendment (2017 Measures No. 3) Act 2017 (Act No. 75 of 2017) for details.
Registered 07 Mar 2005
Start Date 22 Feb 2005
End Date 17 Nov 2005
Table of contents.
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Collapse Volume 1Volume 1
Chapter 1—Introductory
Part 1.1—Preliminary
1 Short title [see Note 1]
2 Commencement [see Note 1]
3 Constitutional basis for this Act
4 Referring States
5 General territorial application of Act
5A Application to the Crown
5B ASIC has general administration of this Act
5C Application of the Acts Interpretation Act 1901
Part 1.1A—Interaction between Corporations legislation and State and Territory laws
5D Coverage of Part
5E Concurrent operation intended
5F Corporations legislation does not apply to matters declared by State or Territory law to be an excluded matter
5G Avoiding direct inconsistency arising between the Corporations legislation and State and Territory laws
5H Registration of body as company on basis of State or Territory law
5I Regulations may modify operation of the Corporations legislation to deal with interaction between that legislation and State and Territory laws
Part 1.2—Interpretation
Division 1—General
6 Effect of this Part
7 Location of other interpretation provisions
9 Dictionary
Division 2—Associates
10 Effect of Division
11 Associates of bodies corporate
12 References in Chapters 6 to 6C, and other references relating to voting power and takeovers etc.
13 References in Chapter 7
15 General
16 Exclusions
17 Associates of composite person that carries on a financial services business
Division 3—Carrying on business
18 Carrying on business: otherwise than for profit
19 Businesses of a particular kind
20 Carrying on a business: alone or together with others
21 Carrying on business in Australia or a State or Territory
Division 5A—Types of company
45A Proprietary companies
Division 6—Subsidiaries and related bodies corporate
46 What is a subsidiary
47 Control of a body corporate’s board
48 Matters to be disregarded
49 References in this Division to a subsidiary
50 Related bodies corporate
50AAA Associated entities
50AA Control
Division 7—Interpretation of other expressions
52 Doing acts
52A Signing
53 Affairs of a body corporate
53AA Business affairs of a body corporate
53AB Business affairs of a natural person
53AC Business affairs of a partnership
53AD Business affairs of a trust
57 Classes of shares or interests in managed investment schemes
57A Meaning of corporation
58AA Meaning of court and Court
58B Discharge of obligations under this Act
59 Debentures as consideration for acquisition of shares
64 Entering into a transaction in relation to shares or securities
64A Entities
64B Entities connected with a corporation
65 Eligible money market dealer
66A Exempt bodies
70 Extension of period for doing an act
73A When a court is taken to find a person guilty of an offence
75 Inclusion in official list
79 Involvement in contraventions
80 Jervis Bay Territory taken to be part of the Australian Capital Territory
82 Offers and invitations to the public
83 Officers, and other persons, in default
86 Possession
88A Public document of a body corporate
88B Qualified accountants
89 Qualified privilege
90 Receivers and managers
92 Securities
95A Solvency and insolvency
Division 8—Miscellaneous interpretation rules
100 Address of registered office etc.
100A Operation of certain laws relating to instruments on which stamp duty has not been paid
101 Amount of stock representing a number of shares
102 Applications to be in writing
102B In Australia or elsewhere, in this jurisdiction or elsewhere etc.
102C In Australia
103 Effect of certain contraventions of this Act
104 Effect of provisions empowering a person to require or prohibit conduct
105 Calculation of time
106 Performance of functions by Commission delegate
107 No tice in relation to top 20 members of a class
108 Parts of dollar to be disregarded in determining majority in value of creditors etc.
109 References to persons, things and matters
109X Service of documents
Part 1.2A—Disclosing entities
Division 1—Object of Part
111AA Object of Part
Division 2—Definitions
111AB Terms defined in Division
111AC Disclosing entity
111AD ED securities
111AE Securities of body or undertaking that is included in a licensed market’s official list
111AF Securities (except debentures and managed investment products) to which lodged or deemed prospectus relates
111AFA Managed investment products held by 100 or more persons
111AG Securities issued as consideration for an acquisition under an off‑market takeover bid or Part 5.1 compromise or arrangement
111AH When a person holds securities for the purposes of sections 111AF, 111AFA and 111AG
111AI Debentures that need trustee appointed under section 283AA
111AJ Regulations may declare securities not to be ED securities
111AK ED securities of a disclosing entity
111AL Listed or unlisted disclosing entity
111AM Quoted ED securities
Division 3—Significance of being a disclosing entity
111AN Division contains outline of significance of being a disclosing entity
111AO Accounting requirements
111AP Continuous disclosure requirements
111AQ Prospectus relief
111AQA Product Disclosure Statement relief
Division 4—Exemptions and modifications
111AR Meaning of disclosing entity provisions
111AS Exemptions by regulations
111AT Exemptions by ASIC
111AU Enforcing conditions of exemptions
111AV Modifications by regulations
111AW Exemptions and modifications have effect
111AX Effect of Division
Part 1.4—Technical provisions about aids for readers
111J Small business guide
Part 1.5—Small business guide
1 What registration means
2 The company structure for small business
3 Setting up a new company
4 Continuing obligations after the company is set up
6 Shares and shareholders
7 Signing company documents
8 Funding the company’s operations
9 Returns to shareholders
10 Annual financial reports and audit
11 Disagreements within the company
12 Companies in financial trouble
Chapter 2A—Registering a company
Part 2A.1—What companies can be registered
112 Types of companies
113 Proprietary companies
114 Minimum of 1 member
115 Restrictions on size of partnerships and associations
116 Trade unions cannot be registered
Part 2A.2—How a company is registered
117 Applying for registration
118 ASIC gives company ACN, registers company and issues certificate
119 Company comes into existence on registration
119A Jurisdiction of incorporation and jurisdiction of registration
120 Members, directors and company secretary of a company
121 Registered office
122 Expenses incurred in promoting and setting up company
123 Company may have common seal
Chapter 2B—Basic features of a company
Part 2B.1—Company powers and how they are exercised
124 Legal capacity and powers of a company
125 Constitution may limit powers and set out objects
126 Agent exercising a company’s power to make contracts
127 Execution of documents (including deeds) by the company itself
Part 2B.2—Assumptions people dealing with companies are entitled to make
128 Entitlement to make assumptions
129 Assumptions that can be made under section 128
130 Information available to the public from ASIC does not constitute constructive notice
Part 2B.3—Contracts before registration
131 Contracts before registration
132 Person may be released from liability but is not entitled to indemnity
133 This Part replaces other rights and liabilities
Part 2B.4—Replaceable rules and constitution
134 Internal management of companies
135 Replaceable rules
136 Constitution of a company
137 Date of effect of adoption, modification or re peal of constitution
138 ASIC may direct company to lodge consolidated constitution
139 Company must send copy of constitution to member
140 Effect of constitution and replaceable rules
141 Table of replaceable rules
Part 2B.5—Registered office and places of business
142 Registered office
143 ASIC may change address of registered office to a director’s address
144 Company’s name must be displayed at registered office etc.
145 Opening hours of registered office of public company
146 Change of address of principal place of business
Part 2B.6—Names
Division 1—Selecting and using a name
147 When a name is available
148 A company’s name
149 Acceptable abbreviations
150 Exception to requirement for using “Limited” in name
151 Exception to requirement for using “Limited” in name—pre‑existing licences
152 Reserving a name
153 Using a name and ACN on documents
154 Exception to requirement to have ACN on receipts
155 Regulations may exempt from requirement to set out information on documents
156 Carrying on business using “Limited”, “No Liability” or “Proprietary” in name
Division 2—Changing a company’s name
157 Company changing its name
158 ASIC’s power to direct company to change its name
159 ASIC’s power to include “Limited” in company’s name
160 ASIC must issue new certificate if company’s name changes
161 Effect of name change
Part 2B.7—Changing company type
162 Changing company type
163 Applying for change of type
164 ASIC changes type of company
165 ASIC may direct a proprietary company to change to a public company in certain circumstances
166 Effect of change of type
167 Issue of shares by company or holding company—company limited by guarantee changing to company limited by shares
167AA Application of Part to company limited both by shares and by guarantee
Chapter 2C—Registers
Part 2C.1—Registers generally
167A Who is covered by this Chapter
168 Registers to be maintained
169 Register of members
170 Register of option holders and copies of options documents [see Note 3]
171 Register of debenture holders
172 Location of registers
173 Right to inspect and get copies
174 Agent’s obligations
175 Correction of registers
176 Evidentiary value of registers
177 Use of information on registers
178 Overseas branch registers
Part 2C.2—Notice by proprietary companies of changes to member register
178A Notice of change to member register
178B Top 20 only
178C Notice of change to share structure
178D Time within which ASIC must be notified
Chapter 2D—Officers and employees
Part 2D.1—Duties and powers
179 Background to duties of directors, other officers and employees
Division 1—General duties
180 Care and diligence—civil obligation only
181 Good faith—civil obligations
182 Use of position—civil obligations
183 Use of information—civil obligations
184 Good faith, use of position and use of information—criminal offences
185 Interaction of sections 180 to 184 with other laws etc.
186 Territorial application of sections 180 to 184
187 Directors of wholly‑owned subsidiaries
188 Responsibility of secretaries and directors for certain contraventions
189 Reliance on information or advice provided by others
190 Responsibility for actions of delegate
190A Limited application of Division to registrable Australian bodies
Division 2—Disclosure of, and voting on matters involving, material personal interests
191 Material personal interest—director’s duty to disclose
192 Director may give other directors standing notice about an interest
193 Interaction of sections 191 and 192 with other laws etc.
194 Voting and completion of transactions—directors of proprietary companies (replaceable rule—see section 135)
195 Restrictions on voting—directors of public companies only
196 ASIC power to make declarations and class orders
Division 3—Duty to discharge certain trust liabilities
197 Directors liable for debts and other obligations incurred by corporation as trustee
Division 4—Powers
198A Powers of directors (replaceable rule—see section 135)
198B Negotiable instruments (replaceable rule—see section 135)
198C Managing director (replaceable rule—see section 135)
198D Delegation
198E Single director/shareholder proprietary companies
198F Right of access to company books
Part 2D.2—Restrictions on indemnities, insurance and termination payments
Division 1—Indemnities and insurance for officers and auditors
199A Indemnification and exemption of officer or auditor
199B Insurance premiums for certain liabilities of director, secretary, other officer or auditor
199C Certain indemnities, exemptions, payments and agreements not authorised and certain documents void
Division 2—Termination payments
200A When benefit given in connection with retirement from office
200B Retirement benefits generally need membership approval
200C Benefits on transfer of undertaking or property need membership approval
200D Contravention to receive benefit without member approval
200E Approval by members
200F Exempt benefits and benefits given in certain circumstances
200G Genuine payments of pension and lump sum
200H Benefits required by law
200J Benefits to be held in trust for company
Part 2D.3—Appointment, remuneration and cessation of appointment of directors
Division 1—Appointment of directors
201A Minimum number of directors
201B Who can be a director
201D Consent to act as director
201E Special rules for the appointment of public company directors
201F Special rules for the appointment of directors for single director/single shareholder proprietary companies
201G Company may appoint a director (replaceable rule—see section 135)
201H Directors may appoint other directors (replaceable rule—see section 135)
201J Appointment of managing directors (replaceable rule—see section 135)
201K Alternate directors (replaceable rule—see section 135)
201L Signpost—ASIC to be notified of appointment
201M Effectiveness of acts by directors
Division 2—Remuneration of directors
202A Remuneration of directors (replaceable rule—see section 135)
202B Members may obtain information about directors’ remuneration
202C Special rule for single director/single shareholder proprietary companies
203A Director may resign by giving written notice to company (replaceable rule—see section 135)
203B Signpost to consequences of disqualification from managing corporations
203C Removal by members—proprietary companies (replaceable rule—see section 135)
203D Removal by members—public companies
203E Director cannot be removed by other directors—public companies
203F Termination of appointment of managing director (replaceable rule—see section 135)
Part 2D.4—Appointment of secretaries
204A Minimum number of secretaries
204B Who can be a secretary
204C Consent to act as secretary
204D How a secretary is appointed
204E Effectiveness of acts by secretaries
204F Terms and conditions of office for secretaries (replaceable rule—see section 135)
204G Signpost to consequences of disqualification from managing corporations
Part 2D.5—Public information about directors and secretaries
205A Director, secretary or alternate director may notify ASIC of resignation or retirement
205B Notice of name and address of directors and secretaries to ASIC
205C Director and secretary must give information to company
205D Address for officers
205E ASIC’s power to ask for information about person’s position as director or secretary
205F Director must give information to company
205G Listed company—director to notify market operator of shareholdings etc.
Part 2D.6—Disqualification from managing corporations
206A Disqualified person not to manage corporations
206B Automatic disqualification
206BA Extension of period of automatic disqualification
206C Court power of disqualification—contravention of civil penalty provision
206D Court power of disqualification—insolvency and non‑payment of debts
206E Court power of disqualification—repeated contraventions of Act
206F ASIC’s power of disqualification
206G Court power to grant leave
206H Territorial application of this Part
206HA Limited application of Part to registrable Australian bodies
Chapter 2E—Related party transactions
207 Purpose
Part 2E.1—Member approval needed for related party benefit
Division 1—Need for member appr oval
208 Need for member approval for financial benefit
209 Consequences of breach
Division 2—Exceptions to the requirement for member approval
210 Arm’s length terms
211 Remuneration and reimbursement for officer or employee
212 Indemnities, exemptions, insurance premiums and payment for legal costs for officers
213 Small amounts given to director or spouse
214 Benefit to or by closely‑held subsidiary
215 Benefits to members that do not discriminate unfairly
216 Court order
Division 3—Procedure for obtaining member approval
217 Resolution may specify matters by class or kind
218 Company must lodge material that will be put to members with ASIC
219 Requirements for explanatory statement to members
220 ASIC may comment on proposed resolution
221 Requirements for notice of meeting
222 Other material put to members
223 Proposed resolution cannot be varied
224 Voting by or on behalf of related party interested in proposed resolution
225 Voting on the resolution
226 Notice of resolution to be lodged
227 Declaration by court of substantial compliance
Part 2E.2—Related parties and financial benefits
228 Related parties
229 Giving a financial benefit
Part 2E.3—Interaction with other rules
230 General duties still apply
Chapter 2F—Members’ rights and remedies
231 Membership of a company
Part 2F.1—Oppressive conduct of affairs
232 Grounds for Court order
233 Orders the Court can make
234 Who can apply for order
235 Requirement for person to lodge order
Part 2F.1A—Proceedings on behalf of a company by members and others
236 Bringing, or intervening in, proceedings on behalf of a company
237 Applying for and granting leave
238 Substitution of another person for the person granted leave
239 Effect of ratification by members
240 Leave to discontinue, compromise or settle proceedings brought, or intervened in, with leave
241 General powers of the Court
242 Power of the Court to make costs orders
Part 2F.2—Class rights
246B Varying and cancelling class rights
246C Certain actions taken to vary rights etc.
246D Variation, cancellation or modification without unanimous support of class
246E Variation, cancellation or modification with unanimous support of class
246F Company must lodge documents and resolutions with ASIC
246G Member’s copies of documents and resolutions
Part 2F.3—Inspection of books
247A Order for inspection of books of company or registered managed investment scheme
247B Ancillary orders
247C Disclosure of information acquired in inspection
247D Company or directors may allow member to inspect books (replaceable rule see section 135)
Chapter 2G—Meetings
Part 2G.1—Directors’ meetings
Division 1—Resolutions and declarations without meetings
248A Circulating resolutions of companies with more than 1 director (replaceable rule see section 135)
248B Resolutions and declarations of 1 director proprietary companies
Division 2—Directors’ meetings
248C Calling directors’ meetings (replaceable rule see section 135)
248D Use of technology
248E Chairing directors’ meetings (replaceable rule see section 135)
248F Quorum at directors’ meetings (replaceable rule see section 135)
248G Passing of directors’ resolutions (replaceable rule see section 135)
Part 2G.2—Meetings of members of companies
Division 1—Resolutions without meetings
249A Circulating resolutions of proprietary companies with more than 1 member
249B Resolutions of 1 member companies
Division 2—Who may call meetings of members
249C Calling of meetings of members by a director (replaceable rule—see section 135)
249CA Calling of meetings of members of a listed company by a director
249D Calling of general meeting by directors when requested by members
249E Failure of directors to call general meeting
249F Calling of general meetings by members
249G Calling of meetings of members by the Court
Division 3—How to call meetings of members
249H Amount of notice of meetings
249HA Amount of notice of meetings of listed company
249J Notice of meetings of members to members and directors
249K Auditor entitled to notice and other communications
249L Contents of notice of meetings of members
249LA Notice of meeting not required to contain certain information
249M Notice of adjourned meetings (replaceable rule—see section 135)
Division 4—Members’ rights to put resolutions etc. at general meetings
249N Members’ resolutions
249O Company giving notice of members’ resolutions
249P Members’ statements to be distributed
Division 5—Holding meetings of members
249Q Purpose
249R Time and place for meetings of members
249S Technology
249T Quorum (replaceable rule—see section 135)
249U Chairing meetings of members (replaceable rule—see section 135)
249V Auditor’s right to be heard at general meetings
249W Adjourned meetings
Division 6—Proxies and body corporate representatives
249X Who can appoint a proxy (replaceable rule for proprietary companies and mandatory rule for public companies—see section 135)
249Y Rights of proxies
249Z Company sending appointment forms or lists of proxies must send to all members
250A Appointing a proxy
250B Proxy documents
250BA Proxy documents—listed companies
250C Validity of proxy vote
250D Body corporate representative
Division 7—Voting at meetings of members
250E How many votes a member has (replaceable rule—see section 135)
250F Jointly held shares (replaceable rule—see section 135)
250G Objections to right to vote (replaceable rule—see section 135)
250H Votes need not all be cast in the same way
250J How voting is carried out (replaceable rule—see section 135)
250K Matters on which a poll may be demanded
250L When a poll is effectively demanded
250M When and how polls must be taken (replaceable rule—see section 135)
Division 8—AGMs of public companies
250N Public company must hold AGM
250P Extension of time for holding AGM
250PA Written questions to auditor submitted by members of listed company before AGM
250R Business of AGM
250RA Auditor required to attend listed company’s AGM
250S Questions and comments by members on company management at AGM
250SA Listed company—remuneration report
250T Questions by members of auditors at AGM
Part 2G.3—Minutes and members’ access to minutes
251A Minutes
251AA Disclosure of proxy votes—listed companies
251B Members’ access to minutes
Part 2G.4—Meetings of members of registered managed investment schemes
Division 1—Who may call meetings of members
252A Calling of meetings of members by responsible entity
252B Calling of meetings of members by responsible entity when requested by members
252C Failure of responsible entity to call meeting of the scheme’s members
252D Calling of meetings of members by members
252E Calling of meetings of members by the Court
Division 2—How to call meetings of members
252F Amount of notice of meetings
252G Notice of meetings of members to members, directors and auditors
252H Auditors entitled to other communications
252J Contents of notice of meetings of members
252K Notice of adjourned meetings
Division 3—Members’ rights to put resolutions etc. at meetings of members
252L Members’ resolutions
252M Responsible entity giving notice of members’ resolutions
252N Members’ statements to be distributed
Division 4—Holding meetings of members
252P Time and place for meetings of members
252Q Technology
252R Quorum
252S Chairing meetings of members
252T Auditors’ right to be heard at meetings of members
252U Ad journed meetings
Division 5—Proxies and body corporate representatives
252V Who can appoint a proxy
252W Rights of proxies
252X Responsible entity sending appointment forms or lists of proxies must send to all members
252Y Appointing a proxy
252Z Proxy documents
253A Validity of proxy vote
253B Body corporate representative
Division 6—Voting at meetings of members
253C How many votes a member has
253D Jointly held interests
253E Responsible entity and associates cannot vote if interested in resolution
253F How to work out the value of an interest
253G Objections to a right to vote
253H Votes need not all be cast in the same way
253J How voting is carried out
253K Matters on which a poll may be demanded
253L When a poll is effectively demanded
Division 7—Minutes and members’ access to minutes
253M Minutes
253N Members’ access to minutes
Chapter 2H—Shares
Part 2H.1—Issuing and converting shares
254A Power to issue bonus, partly‑paid, preference and redeemable preference shares
254B Terms of issue
254C No par value shares
254D Pre‑emption for existing shareholders on issue of shares in proprietary company (replaceable rule—see section 135)
254E Court validation of issue
254F Bearer shares and stock must not be issued
254G Conversion of shares
254H Resolution to convert shares into larger or smaller number
Part 2H.2—Redemption of redeemable preference shares
254J Redemption must be in accordance with terms of issue
254K Other requirements about redemption
254L Consequences of contravening section 254J or 254K
Part 2H.3—Partly‑paid shares
254M Liability on partly‑paid shares
254N Calls may be limited to when company is externally‑administered
254P No liability companies—calls on shares
254Q No liability companies—forfeiture and sale of shares for failure to meet call
254R No liability companies—redemption of forfeited shares
Part 2H.4—Capitalisation of profits
254S Capitalisation of profits
Part 2H.5—Dividends
254T Dividends to be paid out of profits
254U Other provisions about paying dividends (replaceable rule—see section 135)
254V When does the company incur a debt?
254W Dividend rights
Part 2H.6—Notice requirements
254X Notice to ASIC of share issue
254Y Notice to ASIC of share cancellation
Chapter 2J—Transactions affecting share capital
Part 2J.1—Share capital reductions and share buy‑backs
256A Purpose
Division 1—Reductions in share capital not otherwise authorised by law
256B Company may make reduction not otherwise authorised
256C Shareholder approval
256D Consequences of failing to comply with section 256B
256E Signposts to other relevant provisions
Division 2—Share buy‑backs
257A The company’s power to buy back its own shares
257B Buy‑back procedure—general
257C Buy‑back procedure—shareholder approval if the 10/12 limit exceeded
257D Buy‑back procedure—special shareholder approval for selective buy‑back
257E Buy‑back procedure—lodgment of offer documents with ASIC
257F Notice of intended buy‑back
257G Buy‑back procedure—disclosure of relevant information when offer made
257H Acceptance of offer and transfer of shares to the company
257J Signposts to other relevant provisions
Division 3—Other share capital reductions
258A Unlimited companies
258B Right to occupy or use real property
258C Brokerage or commission
258D Cancellation of forfeited shares
258E Other share cancellations
258F Reductions because of lost capital
Part 2J.2—Self‑acquisition and control of shares
259A Directly acquiring own shares
259B Taking security over own shares or shares in holding company
259C Issuing or transferring shares to controlled entity
259D Company controlling entity that holds shares in it
259E When a company controls an entity
259F Consequences of failing to comply with section 259A or 259B
Part 2J.3—Financial assistance
260A Financial assistance by a company for acquiring shares in the company or a holding company
260B Shareholder approval
260C Exempted financial assistance
260D Consequences of failing to comply with section 260A
Part 2J.4—Interaction with general directors’ duties
260E General duties still apply
Chapter 2K—Charges
Part 2K.1—Preliminary
261 Interpretation and application
Part 2K.2—Registration
262 Charges required to be registered
263 Lodgment of notice of charge and copy of instrument
264 Acquisition of property subject to charge
265 Registration of documents relating to charges
265A Standard time for the purposes of section 265
266 Certain charges void against liquidator or administrator
267 Charges in favour of certain persons void in certain cases
268 Assignment and variation of charges
269 Satisfaction of, and release of property from, charges
270 Lodgment of notices, offences etc.
271 Company to keep documents relating to charges and register of charges
272 Certificates
273A Application of State and Territory laws to charges required to be registered under this Part
273B Application of State and Territory laws to transfers, assignments or giving of charges registered under this Part
273C Application of specified State and Territory laws to crop liens, wool liens and stock mortgages registered under this Part
273D Sections 273A to 273C do not apply to charges given by company jointly with person who is not a company
274 Power of Court to rectify Register
277 Power to exempt from compliance with certain requirements of Division
Part 2K.3—Order of priority
278 Definitions
279 Priorities of charges
280 General priority rules in relation to registered charges
281 General priority rule in relation to unregistered charges
282 Special priority rules
Expand Volume 2Volume 2
Expand Volume 3Volume 3
Expand Volume 4Volume 4
Expand Volume 5Volume 5

Corporations Act 2001

Act No. 50 of 2001 as amended

VOLUME 1   includes: Chapters 1–2K (ss. 1 – 282)

This compilation was prepared on 2 March 2005
taking into account amendments up to Act No. 8 of 2005

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

VOLUME 2           includes: Chapters 2L–5B (ss. 283AA – 601DJ)

VOLUME 3           includes: Chapters 5C–6D (ss. 601EA – 742)

VOLUME 4           includes: Chapter 7 (ss. 760A – 1101J)

VOLUME 5           includes: Chapters 9 and 10 (ss. 1274 – 1471)
                                              Schedules 3 and 4

                                              Table of Acts
                                              Act Notes
                                              Table of Amendments
                                              Endnotes
                                              Table A

Prepared by the Office of Legislative Drafting and Publishing,
Attorney-General’s Department, Canberra

  

  

  


Contents

Chapter 1—Introductory                                                                                                   11

Part 1.1—Preliminary                                                                                                         11

1............ Short title [see Note 1]..................................................................... 11

2............ Commencement [see Note 1]............................................................ 11

3............ Constitutional basis for this Act...................................................... 11

4............ Referring States................................................................................. 11

5............ General territorial application of Act............................................... 11

5A......... Application to the Crown................................................................ 11

5B......... ASIC has general administration of this Act.................................... 11

5C......... Application of the Acts Interpretation Act 1901............................... 11

Part 1.1A—Interaction between Corporations legislation and State and Territory laws   11

5D......... Coverage of Part............................................................................... 11

5E.......... Concurrent operation intended......................................................... 11

5F.......... Corporations legislation does not apply to matters declared by State or Territory law to be an excluded matter 11

5G......... Avoiding direct inconsistency arising between the Corporations legislation and State and Territory laws            11

5H......... Registration of body as company on basis of State or Territory law 11

5I........... Regulations may modify operation of the Corporations legislation to deal with interaction between that legislation and State and Territory laws................................................................... 11

Part 1.2—Interpretation                                                                                                    11

Division 1—General                                                                                                    11

6............ Effect of this Part............................................................................. 11

7............ Location of other interpretation provisions..................................... 11

9............ Dictionary......................................................................................... 11

Division 2—Associates                                                                                              11

10.......... Effect of Division............................................................................. 11

11.......... Associates of bodies corporate......................................................... 11

12.......... References in Chapters 6 to 6C, and other references relating to voting power and takeovers etc.        11

13.......... References in Chapter 7.................................................................... 11

15.......... General.............................................................................................. 11

16.......... Exclusions......................................................................................... 11

17.......... Associates of composite person that carries on a financial services business         11

Division 3—Carrying on business                                                                       11

18.......... Carrying on business: otherwise than for profit............................... 11

19.......... Businesses of a particular kind......................................................... 11

20.......... Carrying on a business: alone or together with others...................... 11

21.......... Carrying on business in Australia or a State or Territory................ 11

Division 5A—Types of company                                                                           11

45A....... Proprietary companies..................................................................... 11

Division 6—Subsidiaries and related bodies corporate                           11

46.......... What is a subsidiary......................................................................... 11

47.......... Control of a body corporate’s board................................................ 11

48.......... Matters to be disregarded................................................................. 11

49.......... References in this Division to a subsidiary...................................... 11

50.......... Related bodies corporate.................................................................. 11

50AAA. Associated entities............................................................................ 11

50AA.... Control.............................................................................................. 11

Division 7—Interpretation of other expressions                                         11

52.......... Doing acts......................................................................................... 11

52A....... Signing............................................................................................... 11

53.......... Affairs of a body corporate.............................................................. 11

53AA.... Business affairs of a body corporate................................................ 11

53AB.... Business affairs of a natural person.................................................. 11

53AC.... Business affairs of a partnership...................................................... 11

53AD.... Business affairs of a trust................................................................. 11

57.......... Classes of shares or interests in managed investment schemes........ 11

57A....... Meaning of corporation.................................................................... 11

58AA.... Meaning of court and Court............................................................. 11

58B....... Discharge of obligations under this Act............................................ 11

59.......... Debentures as consideration for acquisition of shares...................... 11

64.......... Entering into a transaction in relation to shares or securities........... 11

64A....... Entities.............................................................................................. 11

64B....... Entities connected with a corporation.............................................. 11

65.......... Eligible money market dealer............................................................ 11

66A....... Exempt bodies.................................................................................. 11

70.......... Extension of period for doing an act................................................. 11

73A....... When a court is taken to find a person guilty of an offence............. 11

75.......... Inclusion in official list..................................................................... 11

79.......... Involvement in contraventions......................................................... 11

80.......... Jervis Bay Territory taken to be part of the Australian Capital Territory             11

82.......... Offers and invitations to the public.................................................. 11

83.......... Officers, and other persons, in default............................................. 11

86.......... Possession........................................................................................ 11

88A....... Public document of a body corporate............................................... 11

88B....... Qualified accountants....................................................................... 11

89.......... Qualified privilege............................................................................. 11

90.......... Receivers and managers.................................................................... 11

92.......... Securities........................................................................................... 11

95A....... Solvency and insolvency.................................................................. 11

Division 8—Miscellaneous interpretation rules                                          11

100........ Address of registered office etc........................................................ 11

100A..... Operation of certain laws relating to instruments on which stamp duty has not been paid   11

101........ Amount of stock representing a number of shares........................... 11

102........ Applications to be in writing............................................................ 11

102B..... In Australia or elsewhere, in this jurisdiction or elsewhere etc........ 11

102C..... In Australia....................................................................................... 11

103........ Effect of certain contraventions of this Act..................................... 11

104........ Effect of provisions empowering a person to require or prohibit conduct              11

105........ Calculation of time............................................................................ 11

106........ Performance of functions by Commission delegate.......................... 11

107........ Notice in relation to top 20 members of a class............................... 11

108........ Parts of dollar to be disregarded in determining majority in value of creditors etc. 11

109........ References to persons, things and matters....................................... 11

109X..... Service of documents........................................................................ 11

Part 1.2A—Disclosing entities                                                                                       11

Division 1—Object of Part                                                                                       11

111AA.. Object of Part................................................................................... 11

Division 2—Definitions                                                                                              11

111AB.. Terms defined in Division................................................................ 11

111AC.. Disclosing entity............................................................................... 11

111AD.. ED securities..................................................................................... 11

111AE... Securities of body or undertaking that is included in a licensed market’s official list              11

111AF... Securities (except debentures and managed investment products) to which lodged or deemed prospectus relates.......................................................................................................... 11

111AFA Managed investment products held by 100 or more persons.......... 11

111AG.. Securities issued as consideration for an acquisition under an off-market takeover bid or Part 5.1 compromise or arrangement....................................................................................... 11

111AH.. When a person holds securities for the purposes of sections 111AF, 111AFA and 111AG 11

111AI.... Debentures that need trustee appointed under section 283AA....... 11

111AJ... Regulations may declare securities not to be ED securities.............. 11

111AK.. ED securities of a disclosing entity.................................................. 11

111AL... Listed or unlisted disclosing entity................................................... 11

111AM. Quoted ED securities........................................................................ 11

Division 3—Significance of being a disclosing entity                                 11

111AN.. Division contains outline of significance of being a disclosing entity 11

111AO.. Accounting requirements.................................................................. 11

111AP... Continuous disclosure requirements................................................. 11

111AQ.. Prospectus relief............................................................................... 11

111AQA..................................................... Product Disclosure Statement relief  11

Division 4—Exemptions and modifications                                                    11

111AR.. Meaning of disclosing entity provisions........................................... 11

111AS... Exemptions by regulations............................................................... 11

111AT.. Exemptions by ASIC........................................................................ 11

111AU.. Enforcing conditions of exemptions................................................. 11

111AV.. Modifications by regulations............................................................ 11

111AW. Exemptions and modifications have effect....................................... 11

111AX.. Effect of Division............................................................................. 11

Part 1.4—Technical provisions about aids for readers                                    11

111J...... Small business guide......................................................................... 11

Part 1.5—Small business guide                                                                                     11

1............ What registration means................................................................... 11

2............ The company structure for small business....................................... 11

3............ Setting up a new company............................................................... 11

4............ Continuing obligations after the company is set up......................... 11

5............ Company directors and company secretaries................................... 11

6............ Shares and shareholders.................................................................... 11

7............ Signing company documents............................................................ 11

8............ Funding the company’s operations.................................................. 11

9............ Returns to shareholders.................................................................... 11

10.......... Annual financial reports and audit.................................................... 11

11.......... Disagreements within the company................................................. 11

12.......... Companies in financial trouble......................................................... 11

Chapter 2A—Registering a company                                                                        11

Part 2A.1—What companies can be registered                                                   11

112........ Types of companies......................................................................... 11

113........ Proprietary companies..................................................................... 11

114........ Minimum of 1 member..................................................................... 11

115........ Restrictions on size of partnerships and associations...................... 11

116........ Trade unions cannot be registered.................................................... 11

Part 2A.2—How a company is registered                                                               11

117........ Applying for registration.................................................................. 11

118........ ASIC gives company ACN, registers company and issues certificate 11

119........ Company comes into existence on registration................................ 11

119A..... Jurisdiction of incorporation and jurisdiction of registration........... 11

120........ Members, directors and company secretary of a company............. 11

121........ Registered office............................................................................... 11

122........ Expenses incurred in promoting and setting up company................ 11

123........ Company may have common seal.................................................... 11

Chapter 2B—Basic features of a company                                                            11

Part 2B.1—Company powers and how they are exercised                            11

124........ Legal capacity and powers of a company........................................ 11

125........ Constitution may limit powers and set out objects......................... 11

126........ Agent exercising a company’s power to make contracts.................. 11

127........ Execution of documents (including deeds) by the company itself... 11

Part 2B.2—Assumptions people dealing with companies are entitled to make       11

128........ Entitlement to make assumptions.................................................... 11

129........ Assumptions that can be made under section 128........................... 11

130........ Information available to the public from ASIC does not constitute constructive notice         11

Part 2B.3—Contracts before registration                                                               11

131........ Contracts before registration............................................................ 11

132........ Person may be released from liability but is not entitled to indemnity 11

133........ This Part replaces other rights and liabilities.................................... 11

Part 2B.4—Replaceable rules and constitution                                                   11

134........ Internal management of companies................................................... 11

135........ Replaceable rules.............................................................................. 11

136........ Constitution of a company............................................................... 11

137........ Date of effect of adoption, modification or repeal of constitution... 11

138........ ASIC may direct company to lodge consolidated constitution........ 11

139........ Company must send copy of constitution to member..................... 11

140........ Effect of constitution and replaceable rules...................................... 11

141........ Table of replaceable rules................................................................. 11

Part 2B.5—Registered office and places of business                                      11

142........ Registered office............................................................................... 11

143........ ASIC may change address of registered office to a director’s address 11

144........ Company’s name must be displayed at registered office etc........... 11

145........ Opening hours of registered office of public company.................... 11

146........ Change of address of principal place of business............................. 11

Part 2B.6—Names                                                                                                                11

Division 1—Selecting and using a name                                                           11

147........ When a name is available.................................................................. 11

148........ A company’s name........................................................................... 11

149........ Acceptable abbreviations.................................................................. 11

150........ Exception to requirement for using “Limited” in name.................... 11

151........ Exception to requirement for using “Limited” in name—pre-existing licences        11

152........ Reserving a name.............................................................................. 11

153........ Using a name and ACN on documents............................................. 11

154........ Exception to requirement to have ACN on receipts......................... 11

155........ Regulations may exempt from requirement to set out information on documents  11

156........ Carrying on business using “Limited”, “No Liability” or “Proprietary” in name   11

Division 2—Changing a company’s name                                                        11

157........ Company changing its name............................................................. 11

158........ ASIC’s power to direct company to change its name...................... 11

159........ ASIC’s power to include “Limited” in company’s name................. 11

160........ ASIC must issue new certificate if company’s name changes.......... 11

161........ Effect of name change....................................................................... 11

Part 2B.7—Changing company type                                                                          11

162........ Changing company type................................................................... 11

163........ Applying for change of type............................................................ 11

164........ ASIC changes type of company....................................................... 11

165........ ASIC may direct a proprietary company to change to a public company in certain circumstances       11

166........ Effect of change of type................................................................... 11

167........ Issue of shares by company or holding company—company limited by guarantee changing to company limited by shares................................................................................................ 11

167AA.. Application of Part to company limited both by shares and by guarantee             11

Chapter 2C—Registers                                                                                                     11

Part 2C.1—Registers generally                                                                                    11

167A..... Who is covered by this Chapter....................................................... 11

168........ Registers to be maintained................................................................ 11

169........ Register of members......................................................................... 11

170........ Register of option holders and copies of options documents [see Note 3]             11

171........ Register of debenture holders........................................................... 11

172........ Location of registers......................................................................... 11

173........ Right to inspect and get copies......................................................... 11

174........ Agent’s obligations........................................................................... 11

175........ Correction of registers...................................................................... 11

176........ Evidentiary value of registers........................................................... 11

177........ Use of information on registers........................................................ 11

178........ Overseas branch registers................................................................. 11

Part 2C.2—Notice by proprietary companies of changes to member register         11

178A..... Notice of change to member register................................................. 11

178B..... Top 20 only...................................................................................... 11

178C..... Notice of change to share structure.................................................. 11

178D..... Time within which ASIC must be notified....................................... 11

Chapter 2D—Officers and employees                                                                      11

Part 2D.1—Duties and powers                                                                                      11

179........ Background to duties of directors, other officers and employees.... 11

Division 1—General duties                                                                                     11

180........ Care and diligence—civil obligation only.......................................... 11

181........ Good faith—civil obligations............................................................ 11

182........ Use of position—civil obligations.................................................... 11

183........ Use of information—civil obligations............................................... 11

184........ Good faith, use of position and use of information—criminal offences  11

185........ Interaction of sections 180 to 184 with other laws etc.................... 11

186........ Territorial application of sections 180 to 184.................................. 11

187........ Directors of wholly-owned subsidiaries........................................... 11

188........ Responsibility of secretaries and directors for certain contraventions 11

189........ Reliance on information or advice provided by others..................... 11

190........ Responsibility for actions of delegate.............................................. 11

190A..... Limited application of Division to registrable Australian bodies..... 11

Division 2—Disclosure of, and voting on matters involving, material personal interests           11

191........ Material personal interest—director’s duty to disclose................... 11

192........ Director may give other directors standing notice about an interest 11

193........ Interaction of sections 191 and 192 with other laws etc.................. 11

194........ Voting and completion of transactions—directors of proprietary companies (replaceable rule—see section 135).......................................................................................................... 11

195........ Restrictions on voting—directors of public companies only........... 11

196........ ASIC power to make declarations and class orders.......................... 11

Division 3—Duty to discharge certain trust liabilities                              11

197........ Directors liable for debts and other obligations incurred by corporation as trustee                11

Division 4—Powers                                                                                                     11

198A..... Powers of directors (replaceable rule—see section 135).................. 11

198B..... Negotiable instruments (replaceable rule—see section 135)............ 11

198C..... Managing director (replaceable rule—see section 135).................... 11

198D..... Delegation......................................................................................... 11

198E...... Single director/shareholder proprietary companies.......................... 11

198F...... Right of access to company books................................................... 11

Part 2D.2—Restrictions on indemnities, insurance and termination payments      11

Division 1—Indemnities and insurance for officers and auditors       11

199A..... Indemnification and exemption of officer or auditor........................ 11

199B..... Insurance premiums for certain liabilities of director, secretary, other officer or auditor        11

199C..... Certain indemnities, exemptions, payments and agreements not authorised and certain documents void              11

Division 2—Termination payments                                                                     11

200A..... When benefit given in connection with retirement from office......... 11

200B..... Retirement benefits generally need membership approval............... 11

200C..... Benefits on transfer of undertaking or property need membership approval         11

200D..... Contravention to receive benefit without member approval............ 11

200E...... Approval by members...................................................................... 11

200F...... Exempt benefits and benefits given in certain circumstances........... 11

200G..... Genuine payments of pension and lump sum.................................. 11

200H..... Benefits required by law................................................................... 11

200J...... Benefits to be held in trust for company.......................................... 11

Part 2D.3—Appointment, remuneration and cessation of appointment of directors            11

Division 1—Appointment of directors                                                               11

201A..... Minimum number of directors.......................................................... 11

201B..... Who can be a director....................................................................... 11

201D..... Consent to act as director................................................................. 11

201E...... Special rules for the appointment of public company directors...... 11

201F...... Special rules for the appointment of directors for single director/single shareholder proprietary companies         11

201G..... Company may appoint a director (replaceable rule—see section 135).. 11

201H..... Directors may appoint other directors (replaceable rule—see section 135)           11

201J...... Appointment of managing directors (replaceable rule—see section 135)               11

201K..... Alternate directors (replaceable rule—see section 135)................... 11

201L...... Signpost—ASIC to be notified of appointment............................... 11

201M.... Effectiveness of acts by directors..................................................... 11

Division 2—Remuneration of directors                                                            11

202A..... Remuneration of directors (replaceable rule—see section 135)....... 11

202B..... Members may obtain information about directors’ remuneration.... 11

202C..... Special rule for single director/single shareholder proprietary companies               11

Division 3—Resignation, retirement or removal of directors              11

203A..... Director may resign by giving written notice to company (replaceable rule—see section 135)             11

203B..... Signpost to consequences of disqualification from managing corporations             11

203C..... Removal by members—proprietary companies (replaceable rule—see section 135)             11

203D..... Removal by members—public companies....................................... 11

203E...... Director cannot be removed by other directors—public companies 11

203F...... Termination of appointment of managing director (replaceable rule—see section 135)         11

Part 2D.4—Appointment of secretaries                                                                   11

204A..... Minimum number of secretaries....................................................... 11

204B..... Who can be a secretary..................................................................... 11

204C..... Consent to act as secretary............................................................... 11

204D..... How a secretary is appointed........................................................... 11

204E...... Effectiveness of acts by secretaries.................................................. 11

204F...... Terms and conditions of office for secretaries (replaceable rule—see section 135)                11

204G..... Signpost to consequences of disqualification from managing corporations             11

Part 2D.5—Public information about directors and secretaries                 11

205A..... Director, secretary or alternate director may notify ASIC of resignation or retirement          11

205B..... Notice of name and address of directors and secretaries to ASIC.... 11

205C..... Director and secretary must give information to company.............. 11

205D..... Address for officers.......................................................................... 11

205E...... ASIC’s power to ask for information about person’s position as director or secretary         11

205F...... Director must give information to company.................................... 11

205G..... Listed company—director to notify market operator of shareholdings etc.           11

Part 2D.6—Disqualification from managing corporations                             11

206A..... Disqualified person not to manage corporations.............................. 11

206B..... Automatic disqualification................................................................ 11

206BA.. Extension of period of automatic disqualification............................ 11

206C..... Court power of disqualification—contravention of civil penalty provision           11

206D..... Court power of disqualification—insolvency and non-payment of debts              11

206E...... Court power of disqualification—repeated contraventions of Act.. 11

206F...... ASIC’s power of disqualification..................................................... 11

206G..... Court power to grant leave............................................................... 11

206H..... Territorial application of this Part.................................................... 11

206HA.. Limited application of Part to registrable Australian bodies............ 11

Chapter 2E—Related party transactions                                                                11

207........ Purpose............................................................................................. 11

Part 2E.1—Member approval needed for related party benefit                11

Division 1—Need for member approval                                                           11

208........ Need for member approval for financial benefit............................... 11

209........ Consequences of breach.................................................................... 11

Division 2—Exceptions to the requirement for member approval    11

210........ Arm’s length terms........................................................................... 11

211........ Remuneration and reimbursement for officer or employee.............. 11

212........ Indemnities, exemptions, insurance premiums and payment for legal costs for officers         11

213........ Small amounts given to director or spouse....................................... 11

214........ Benefit to or by closely-held subsidiary.......................................... 11

215........ Benefits to members that do not discriminate unfairly.................... 11

216........ Court order....................................................................................... 11

Division 3—Procedure for obtaining member approval                           11

217........ Resolution may specify matters by class or kind............................ 11

218........ Company must lodge material that will be put to members with ASIC  11

219........ Requirements for explanatory statement to members...................... 11

220........ ASIC may comment on proposed resolution................................... 11

221........ Requirements for notice of meeting.................................................. 11

222........ Other material put to members......................................................... 11

223........ Proposed resolution cannot be varied............................................... 11

224........ Voting by or on behalf of related party interested in proposed resolution             11

225........ Voting on the resolution................................................................... 11

226........ Notice of resolution to be lodged...................................................... 11

227........ Declaration by court of substantial compliance............................... 11

Part 2E.2—Related parties and financial benefits                                             11

228........ Related parties.................................................................................. 11

229........ Giving a financial benefit.................................................................. 11

Part 2E.3—Interaction with other rules                                                                    11

230........ General duties still apply................................................................. 11

Chapter 2F—Members’ rights and remedies                                                       11

231........ Membership of a company.............................................................. 11

Part 2F.1—Oppressive conduct of affairs                                                               11

232........ Grounds for Court order................................................................... 11

233........ Orders the Court can make............................................................... 11

234........ Who can apply for order.................................................................. 11

235........ Requirement for person to lodge order............................................. 11

Part 2F.1A—Proceedings on behalf of a company by members and others              11

236........ Bringing, or intervening in, proceedings on behalf of a company..... 11

237........ Applying for and granting leave....................................................... 11

238........ Substitution of another person for the person granted leave............ 11

239........ Effect of ratification by members..................................................... 11

240........ Leave to discontinue, compromise or settle proceedings brought, or intervened in, with leave              11

241........ General powers of the Court............................................................ 11

242........ Power of the Court to make costs orders......................................... 11

Part 2F.2—Class rights                                                                                                      11

246B..... Varying and cancelling class rights.................................................... 11

246C..... Certain actions taken to vary rights etc............................................ 11

246D..... Variation, cancellation or modification without unanimous support of class          11

246E...... Variation, cancellation or modification with unanimous support of class               11

246F...... Company must lodge documents and resolutions with ASIC.......... 11

246G..... Member’s copies of documents and resolutions.............................. 11

Part 2F.3—Inspection of books                                                                                     11

247A..... Order for inspection of books of company or registered managed investment scheme           11

247B..... Ancillary orders................................................................................ 11

247C..... Disclosure of information acquired in inspection............................. 11

247D..... Company or directors may allow member to inspect books (replaceable rule see section 135)             11

Chapter 2G—Meetings                                                                                                     11

Part 2G.1—Directors’ meetings                                                                                   11

Division 1—Resolutions and declarations without meetings                11

248A..... Circulating resolutions of companies with more than 1 director (replaceable rule see section 135)       11

248B..... Resolutions and declarations of 1 director proprietary companies.. 11

Division 2—Directors’ meetings                                                                          11

248C..... Calling directors’ meetings (replaceable rule see section 135)......... 11

248D..... Use of technology............................................................................. 11

248E...... Chairing directors’ meetings (replaceable rule see section 135)....... 11

248F...... Quorum at directors’ meetings (replaceable rule see section 135)... 11

248G..... Passing of directors’ resolutions (replaceable rule see section 135) 11

Part 2G.2—Meetings of members of companies                                                11

Division 1—Resolutions without meetings                                                     11

249A..... Circulating resolutions of proprietary companies with more than 1 member         11

249B..... Resolutions of 1 member companies................................................ 11

Division 2—Who may call meetings of members                                        11

249C..... Calling of meetings of members by a director (replaceable rule—see section 135) 11

249CA.. Calling of meetings of members of a listed company by a director.. 11

249D..... Calling of general meeting by directors when requested by members 11

249E...... Failure of directors to call general meeting........................................ 11

249F...... Calling of general meetings by members........................................... 11

249G..... Calling of meetings of members by the Court.................................. 11

Division 3—How to call meetings of members                                             11

249H..... Amount of notice of meetings.......................................................... 11

249HA.. Amount of notice of meetings of listed company............................ 11

249J...... Notice of meetings of members to members and directors............... 11

249K..... Auditor entitled to notice and other communications...................... 11

249L...... Contents of notice of meetings of members..................................... 11

249LA... Notice of meeting not required to contain certain information......... 11

249M.... Notice of adjourned meetings (replaceable rule—see section 135).. 11

Division 4—Members’ rights to put resolutions etc. at general meetings