法律必背..docxVIP

Business structure different legal, industry choice and size of the businessSole trader own owner+ ① Easy and low cost of registration② Owner keep own profit③ Completely free of decision making, operate independently.﹣① Unlimited liability --- sole trader is risking their personal savings and assets.② Difficult to obtain finance③ Various skills required, long working hoursPartnership two or more owners operating the business together+ ① Easy and low cost of registration② Shared workload③ Each partner tax individually﹣① Unlimited liability② Shared profit③ DisagreementsFranchise operate under the name of an established brand+ ① The security of a recognized name and product② The experience of the franchisor③ Access to bulk buying﹣① A Part of your profit goes to franchisor② Expanding limited③ Disputes commonUnincorporated+ ① Easy and low cost of registration② Owner keep own profit③ Completely free of decision making, flexibility﹣① Unlimited liability② Difficult to obtain finance③ Illusion of flexibility, long working hoursIncorporatedIncorporation is a legal process establishing a separate legal entity distinct from its members.+ ① Limited liability② Raising money easier③ More stable and increased business operations﹣① Another tax to pay② Increased paper work③ Registration expensive【Corporation veil】Salomon V Salomon 27Judicial recognition of principle ‘one man’ company. The principle of the corporate veil was established in the case of Salomon v Salomon which found that the company is separate from the owners and the company debts are not the owners debtsDirector’s duty under Corporation Act① Act with care and diligence as a reasonable person.② Director has fiduciary duty --- act in good faith in relation to the company.③ Should not use their position improperly to gain an advantage for themselves.Remedies for breach of duty: civil + criminal① Pay damage to the company.② Disgorge (没收) profit made through the breach of duty.③ Injunctions: stop being a director.④ Impriso