Operational management of Tourism and Hospitality

Question: Discuss about the Registration of Propriety Limited Company. Answer: Introduction A propriety Limited Company in most cases is abbreviated as PTY LTD. The name propriety means a company which is privately owned and on the other hand, limited refers to the liability that arises from the shareholders limited payment of debts by the amount of shares. Before registration of propriety limited company especially in Australia. There are very vital and important requirements which must be met. These requirements include the following; the company in question must at least have one director on board. The company must also have a physical Australian address for an office that is registered (Australia 2011). Other than that, the company must have on the lower case at least one shareholder but not exceeding a total of 50 non employees. The registration of a propriety limited company is reffered to section 117 where an application for registration is taken and completed in preparation of all the relevant consent. The application of the form has to be made to be made to ASIC whose full meaning is Australian Securities and Investment Commission. The subject body is the one charged with governing all the companies incorporation. At the registration of a propriety limited company, one will have to provide a corporate register for documentation which is supposed to be in line with the Corporate Act of 2001. It is only out of this that Australian Securities and Investment Commission will be able to provide you with the registration certificate. Nevertheless, the registration of a propriety limited company also requires very close observance on the internal management of the company which is to be governed by combination of rules and constitution that are replaceable. The mentioned should be in line with the Corporation Act under section 134 and 135. According to Corporations Act of 2001, replaceable rules are defined as certain sections within the Corporate Act which have an automatic application with respect to governing the management of the company. The NB section 134 and 135, clearly states the powers of rules that are within the constitution. Some of the powers include the following; the appointment and powers of the directors. It also deals with the regulation of the members and directors meetings. On the same aspect, it provides for the provisions of a number of share classes (Australia company laws and regulations handbook 2009). This is the main reason why the internal management of the propriety limited company should be under the governance by the combination of replaceable rules and constitution under section 134 and 135 as already covered from a detailed perspective. The registration of the company in question should also have a class of both ordinary shares as well as a class of redeemable preference shares. The former is covered under section 254A (2) and (3). In the case of preference shares, it is important in a companys registration since it empowers the subject issue. The shares are also pegged to the already discussed concept of constitutionality and rules of NB section 134 and 135 that deals with matters related to repayment of capital, cumulative and noncumulative of dividends (Cassidy 2006). On the part of redeemable preference shares under section 254A (3), it is vital for registration because it will allow for the propriety limited company to redeem its shares at a time that is fixed or on the happening of certain events. The events may be in line with the subject company option or shareholders option. All these are captured in NB section 254A (3). Section 198 A in the Corporate Act Background information of the section in context in line with the Corporate Act Section 198A of the corporate Act is a section that occurs within the 2001 Act of Corporations. It is a section that covers wider area or a wide perspective. The section is mainly in line with the powers directors, for example under special rules; it mentions propriety companies that may have single directors (Cch Editors. (2008). The section stipulates that the director of a propriety company is allowed to administer all of the company except where the Act in question requires the company to undergo an exercise of a general meeting. Reason for Inclusion of Section 198A in the Corporate Act The main reason for inclusion of the chapter in question is based on the provision it offers in terms of the overall managerial remuneration That is either payable by a private company where we find the propriety limited company or public company. This particular section also offers great and extensive coverage on the view of directors of propriety limited companies. Some the area it covers includes the duties of directors, those who are considered as directors among other major concerns. Section 191under the Corporate Act Background of section 191 under the mentioned Act The section in question is in line with the material self interest. This is mainly on the duties that are majorly held by the directors and therefore the disclosure of those duties is within their discretion (Cohen, Small Zimiles 2002). Reason for Inclusion of the Section in Context under the Corporate Act Main reason for inclusion of the subject section in the Corporate Act is because it closely examines how directors undertake duties they need to disclose. For example; it states that a company director has a material of personal interest in a matter that relates to the affairs of the company and must also offer notice messages unless stated otherwise. The section in question within the Corporate Act also gives relation to a contract that a company may bring forward in terms of entering into a business that is still pending approval by the members and there will be no imposition on any obligation on the grounds that the approval is not made by the members. The final reason why it is included in the Corporate Act is also on the basis that it analyzes various sub paragraphs in which if incase there are conflicting issues within the propriety limited company or any other company provided its provisions are within the subject section, references can be made and problem analyzed. Therefore section 191 is a vital organ in the Corporate Act, some experts at one point argued it out as one of the sections that act as key pillars to the Act in context. There argument was majorly based on how the Act addresses critical concerns with regards to companys directors and how these concerns can be looked at from a deeper perspective (Tomasic, Bottomley McQueen 2002). The Act has created many merits in companys managerial procedures because directors have been made known to the nature of their work and how they are also suppose to undertake them. Section 250 R (2) (3) of the Corporate Act Background of the above Section with regards to the Corporate Act The background of the section in context is mainly about the critical role it plays with regards to Corporations Act 2001 under AGM. Its background critically examines purposes and objectives that are to be considered in the cases of annual general meetings. Reason for Inclusion in the Corporate Act Its main reason for existence in the Corporate Act is because of the detailed information and guidelines that it offers for Annual General Meetings. It is documented in the subject section that there should considerations which are to be made with respect to both the financial report and the directors report. Section 250R (2) (3) also includes the consideration of the auditors report for the AGM (Moore Watson 2003). Apart from the mentioned, the subject also offers electoral guidelines for propriety limited companies, the fixation of the auditors remunerations and the procedure for appointment of auditors. The section above offers guidelines that are used in the advisory resolutions when it comes to adoption of reports of remuneration. The vitality of this section is greater because it acts as what combines the whole of propriety limited sector or even sectors of public companies. This is because as already mentioned in the background of the subject; it takes direct controls of AGMs. It is out of these AGMs that a company is able reflects into issues that relates to its operations, how it has performed for that particular year and even report analysis. From here, the company will able to come up with recommendations and restructuring policies that will be able to move it to greater highs (Slemrod 2010). On the same plight, the section in question also offers guidelines on matters of elections as mentioned are key areas in a company. The section ensures that there is smooth exit of the old energy and allows the entrance of a new energy that will be able to spur the company into better and greater heights. The mentioned are just a few explanations with the view of the already mentioned key reasons for inclusion of the section in question. Conclusion In conclusion, the registration of a propriety limited company is a detailed process that requires a number of documents and provisions as mentioned in the introductory paragraphs. The task above has also tackled critical areas that as provided as per the instructions. References Australia. (2011). Australian corporations securities legislation 2011. North Ryde, N.S.W., CCH Australia. Australia company laws and regulations handbook (2009). Vol. 1 strategic information and basic regulations. Vol. 1 strategic information and basic regulations. Washington, International Business Publications. Cassidy, J. (2006). Concise corporations law. Annandale, N.S.W., Federation Press. Cch Editors. (2008). Australian master accountants guide 2008/09. Sydney, CCH Australia. Cohen, H. R., Small, R. A., Zimiles, E. (2002). Money laundering update 2002: what you need to know now. New York, Practising Law Institute. Tomasic, R., Bottomley, S., McQueen, R. (2002). Corporations law in Australia. Sydney, Federation Press. Moore, J. C., Watson, V. (2003). Long service leave (New South Wales): being the Long Service Leave Act, 1955-1963, with rules, forms and notes. Sydney, Law Book Co. of Australasia. Slemrod, J. (2010). Do taxes matter?: the impact of the Tax Reform Act of 1986. Cambridge, Mass, MIT Press.