11 Jul WHAT IS THE MAXIMUM NUMBER OF SHAREHOLDERS ALLOWED FOR A PROPRIETARY LIMITED COMPANY?
Ruprecht and Lawrence are partners in Trident Holdings, a business which manufactures synthetic cork products. The business is growing and Ruprecht and Lawrence are keen to obtain further capital, export their products and also reward ten loyal long-term employees who have been with them since they started the business. They decide to change their business structure to a proprietary limited company and request your advice as to the following matters:
(a) What is the purpose of the Small Business Guide produced by ASIC?
(b) In what way can a proprietary limited company structure be used to reward employees?
(c) What is the maximum number of shareholders allowed for a proprietary limited company?
(d) Can the business continue to be called Trident Holdings? If not, what changes must be made?
(e) What is the difference between a small proprietary company and a large proprietary company?
(f) How may Ruprecht and Lawrence use the structure of the proprietary limited company to raise capital to grow the business?
(g) Why is a company structure beneficial for a business involved in export?
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