CCH Note:
Part 13 of the
Corporations Act 1989, inserted
by sec 6 of No 110 of 1990, Sch 1 (effective 1 January 1991), begins as
follows:
PART 13 - THE CORPORATIONS LAW
THE CORPORATIONS LAW
82
The Corporations Law is as follows:...
CHAPTER 2B - BASIC FEATURES OF A COMPANY
History
Chapter 2B inserted by No 61 of 1998, Sch 1 (effective 1 July 1998).
PART 2B.1 - COMPANY POWERS AND HOW THEY ARE EXERCISED
History
Part 2B.1 inserted by No 61 of 1998, Sch 1 (effective 1 July 1998).
SECTION 124
LEGAL CAPACITY AND POWERS OF A COMPANY
124(1)
(Capacity and powers)
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.
History
S 124(1) amended by No 156 of 1999, Sch 3, Pt 2 (effective 13 March 2000).
S 124(1) substituted by No 61 of 1998, Sch 1 (effective 1 July 1998).
124(2)
(Company's interests)
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.
History
S 124(2) substituted by No 61 of 1998, Sch 1 (effective 1 July 1998).