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Solution Library
Establishing Private Company from Family-owned Business
Question
Julie wishes to change her personally owned flower business into a corporation - in order to raise a greater amount of capital for an expansion program. June instructs her solicitor to prepare the necessary documents for incorporation whereby she will become a shareholder, along with her chief employee and brother. Julie wants to keep control of the company and, while allowing for non-family members, she wants to ensure that the board of directors can accept or reject potential members.
a) Julie believes she must have a company seal, company name, constitution and is concerned about running out of enough shares to issue to potential members of the company. Please advise Julie about all of these matters and the various documents to be prepared.
b) Julie is concerned about the particular rules of running a company and seeks advice as to the extra expenditure in satisfying ASIC requirements for financial records, meetings and other requirements. Please advise Julie on what would be required according to her choice of company.
Summary
The question belongs to Law and it discusses about turning a family owned business into a company. The chief promoter of the company needs advice from her solicitor for this purpose. The options available to her are discussed in the solution.
Total Word Count 156
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