"Registration of a Proprietary Ltd Company in AustraliaPART 1INTRODUCTIONSetting up of a company needs lot of legal and regulatory setups. Those setups fulfil all kind ofrequirements that are essential, rather mandatory in different regions. The current discussioninvolves the legal and regulatory requirements essential for setting up and registering aProprietary Ltd Company in Australia. Australian Securities & Investments Commissionprovides all the legal and regulatory requirements for the same. Before starting with theregistration process, it is essential to understand and to know the meaning and significance of aProprietary Ltd Company (Chan, Watson, &Woodliff, 2014). Basically the abbreviation forProprietary Limited is Pty Ltd which means the company is held privately and limited means thatthe shareholders of the company are liable for paying the debts of the company. In Australiathere are certain conditions for the a Proprietary Ltd Company like,? Must have a director living in Australia? Must have a physical address of an Australian for registration? Company secretary must live in Australia? The number of shareholders must be more than one but less than 50METHODS & STEPS OF REGISTRATION OF A PROPRIETARY LTD COMPANYMajority of the Australian companies have Pty Ltd registration. There are two ways by which thecompany can be registered,1 Registration of a Proprietary Ltd Company in Australia? Directly with Australian Securities and Investment Commission (ASIC) by lodging apaper form at the counter with some official fees. It also needs corporate registerdocumentation so as to get compliant with the Corporations Act 2001.? Involvement of the third party vendors or agents who will support the entire registrationprocess. ASIC's electronic lodgment protocol named EDGE is used for this purposewhere application can be submitted 24/7.An amount of $469 is charged for the registration fees which are also known as GSTfees(Klettner, Clarke, &Boersma, 2014). Apart from the methods of registration there are certain steps that should be followed for theregistration process. Some of those are,? Deciding the structure of the business as per the standard under the Corporations Act2001? Choosing a right name for the startup? Determining if the company will be operational under the replaceable rules or under theconstitution or it will follow a combination of both.? Collecting consents of the directors, members and secretary of the company? Logging and filing the application formsLAWS GOVERNING REGISTRATIONUnder the Corporations Act 2001, three laws govern the registration of the companies inAustralia, 2 Registration of a Proprietary Ltd Company in Australia1. Replaceable rules – A table is presented (s141) under the Corporations Act. Under thelaw of the section 135, this is not applicable for proprietary companies(Chan, Watson,&Woodliff, 2014).2. A Constitution – It involves passage of a special resolution for the adaption of theconstitution after the registration process is over. It needs a 21 days’ notice and anagreement of majority of around 75% (a reference is made to 136, 137, 249H & L)3. Proprietary Companies rule – It comes under the act of 112 and 113 of the ASIC andunder s165 for a private firm.PART 2SECTION 198AAccording to the Corporations Act 2001, Directors were given the right to govern the companyon behalf of the shareholders. This comes under S198A (1) of the Corporations Act 2001 whichis also well known as the “power of the Directors”. The same is mentioned in section 135 of thereplaceable rule(Chan, Watson, &Woodliff, 2014). This power was provided to the directorsbecause they act with diligence and care for the company. They also take critical decisions notby getting biased, rather thinking of various aspects of the company and its future. He also holdsgood faith of the employee and the shareholders for whom he actually represents(Rhode,&Packel, A2014). Section 198Eprovides all the information about the powers andresponsibilities of the directors as well as their limitations (Dhaliwal, Li, Tsang, & Yang, 2014).A director should never misuse his position or power which has been clearly mentioned insection S180. Section 183 provides the law for proper use of the information of the company andalso provides the limitations beyond which he cannot render his power or3 Registration of a Proprietary Ltd Company in Australiaresponsibilities(Klettner, Clarke, &Boersma, 2014). Australian Securities & InvestmentsCommission provides all the legal and regulatory requirements for the roles and responsibilitiesof the Director. SECTION 191Section 191 of the Corporations Act 2001 provides guidelines for the circumstances when thedirector is allowed to disclose any kind of personal interest material to the board (Rhode,&Packel, A2014). To be more specific, this section guides the director’s duty to disclose as andwhen the situation is required like that of a conflict or any mismatch in the decisions taken forthe company(Chan, Watson, &Woodliff, 2014). It also have many subsections like, S191(1)provides guidelines to the company’s director when and where he has to disclose his personalinformation or is personal interests to other members or other directors of the company. Section191(1A) defines the rule when nondisclosure of those information during the time of need or atthe legal requirements(Klettner, Clarke, &Boersma, 2014). This rule provides strict guidelinesfor the same and also defines the proper relationship of the director with other members andshareholders of the company. The power was provided to the directors because they act withdiligence and care for the company. They also take critical decisions not by getting biased, ratherthinking of various aspects of the company and its future(Dhaliwal, Li, Tsang, & Yang, 2014).He also holds good faith of the employee and the shareholders for whom he actually represents.SECTION 250R (2) &(3)Section 250R (2) & (3) of the Corporations Act 2001 provides highlights of the roles andresponsibilities of the Assistant General Manager (AGM). The role of the Assistant GeneralManager is vital for any kind of business firm. This act also provides information on the proxy4 Registration of a Proprietary Ltd Company in Australiavoting (Klettner, Clarke, &Boersma, 2014). This is management by the personnel authorized bythe company. Subsection 250R(2) provides guidelines for the probable resolutions for theconflicts or any kind of proxy voting. It also provides information about the resolution or theremuneration report that is listed under the Corporations Act 2001. Subsections 250R(4)providesrules that helps in prohibiting persons who are not authorized to vote or have any kind oflitigations or conflicts associated with(Dhaliwal, Li, Tsang, & Yang, 2014). The combinedefforts of the assistant general manager and the director involves, deciding the structure of thebusiness as per the standard under the Corporations Act 2001, choosing a right name for thestartup, determining if the company will be operational under the replaceable rules or under theconstitution or it will follow a combination of both, collecting consents of the directors, membersand secretary of the company and logging and filing the application forms (Ferran, & Ho, 2014). 5 "