In Australia, a proprietary company is defined under section 45A(1) of the Corporations Act 2001 (Cth).[1]
The Act puts certain restrictions on proprietary companies such as not permitting them to have more than 50 members (shareholders). Another important restriction relates to fundraising. A proprietary company must not engage in fundraising that would require a disclosure document such as a prospectus, an offer information statement, or a profile statement to be issued (sec.113(3)). The Act states in which circumstances a company must issue a prospectus when attempting to raise funds. This means that a proprietary company must not offer its shares to the public.
Section 45A of the Act also distinguishes proprietary companies as either "large proprietary" or "small proprietary". The differences here relate to issues such as operating revenue, consolidated gross assets, and the number of employed persons.
Under Australian law, a proprietary limited company (abbreviated as 'Pty Ltd') is a business structure that has at least one shareholder and up to 50, where the liability of shareholders is limited to the value of shares. Its counterparts include the public limited company (Ltd) and the Unlimited Proprietary company (Pty) with a share capital.
Under the Australian Corporations Act 2001 (Cth), a proprietary company must be either –
Proprietary Limited (Pty Ltd) company, limited by shares, where shareholders are afforded more protection when it comes to the level of liability they face for company debts; or
Unlimited Proprietary (Pty) company with a share capital, similar to its limited company (Ltd or Pty Ltd) counterpart, but where the members' or shareholders' liability is not limited.
The proprietary limited or unlimited company must have at least one shareholder, no more than 50 non-employee shareholders, and at least one director who must live in Australia. A secretary can be appointed (sec.204A), that must be at least 18 years of age. One person may simultaneously hold the positions of company director and secretary.
Proprietary limited companies are also classified as "large" or "small". A proprietary company is classified as small only if it meets at least two of the following criteria:[2]
It has assets of less than $25 million at the end of a financial year.
It has fewer than 100 employees at the end of a financial year.
It has a gross operating revenue of less than $50 million for the financial year.
Most large proprietary companies have to lodge audited accounts. Small proprietary companies only have to prepare audited financial statements if ordered to do so by Australian Securities & Investments Commission or members holding five percent of voting shares and, in some cases, if controlled by a foreign company.
Company namesEdit
Proprietary companies have the word "Proprietary" in their name, thus Relays Proprietary Limited, abbreviated to Relays Pty Ltd or Relays P/L.
Other countriesEdit
In Singapore, a proprietary company name would be named "Relays (Private) Limited" abbreviated to "Relays Pte Ltd".
In Namibia and South Africa, the name of a private company ends with "(Pty) Ltd" and that of a public company ends with "Ltd".
Company numberEdit
To help identify companies more uniquely and concisely, many countries have a company number which does not change if the company changes its name.
proprietary, company, this, article, needs, additional, citations, verification, please, help, improve, this, article, adding, citations, reliable, sources, unsourced, material, challenged, removed, find, sources, news, newspapers, books, scholar, jstor, decem. This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Proprietary company news newspapers books scholar JSTOR December 2009 Learn how and when to remove this template message A proprietary company the characteristic of which is abbreviated as Pty is a form of privately held company in Australia Namibia and South Africa that is either limited or unlimited However unlike a public company there are depending on jurisdiction restrictions on what it can and cannot do In Australia a proprietary company is defined under section 45A 1 of the Corporations Act 2001 Cth 1 The Act puts certain restrictions on proprietary companies such as not permitting them to have more than 50 members shareholders Another important restriction relates to fundraising A proprietary company must not engage in fundraising that would require a disclosure document such as a prospectus an offer information statement or a profile statement to be issued sec 113 3 The Act states in which circumstances a company must issue a prospectus when attempting to raise funds This means that a proprietary company must not offer its shares to the public Section 45A of the Act also distinguishes proprietary companies as either large proprietary or small proprietary The differences here relate to issues such as operating revenue consolidated gross assets and the number of employed persons Large proprietary companies are required to appoint an auditor and lodge appropriate financial statements with the Australian Securities amp Investments Commission Contents 1 Proprietary limited or unlimited company 2 Company names 2 1 Other countries 3 Company number 4 See also 5 ReferencesProprietary limited or unlimited company EditUnder Australian law a proprietary limited company abbreviated as Pty Ltd is a business structure that has at least one shareholder and up to 50 where the liability of shareholders is limited to the value of shares Its counterparts include the public limited company Ltd and the Unlimited Proprietary company Pty with a share capital Under the Australian Corporations Act 2001 Cth a proprietary company must be either Proprietary Limited Pty Ltd company limited by shares where shareholders are afforded more protection when it comes to the level of liability they face for company debts or Unlimited Proprietary Pty company with a share capital similar to its limited company Ltd or Pty Ltd counterpart but where the members or shareholders liability is not limited The proprietary limited or unlimited company must have at least one shareholder no more than 50 non employee shareholders and at least one director who must live in Australia A secretary can be appointed sec 204A that must be at least 18 years of age One person may simultaneously hold the positions of company director and secretary Proprietary limited companies are also classified as large or small A proprietary company is classified as small only if it meets at least two of the following criteria 2 It has assets of less than 25 million at the end of a financial year It has fewer than 100 employees at the end of a financial year It has a gross operating revenue of less than 50 million for the financial year Most large proprietary companies have to lodge audited accounts Small proprietary companies only have to prepare audited financial statements if ordered to do so by Australian Securities amp Investments Commission or members holding five percent of voting shares and in some cases if controlled by a foreign company Company names EditProprietary companies have the word Proprietary in their name thus Relays Proprietary Limited abbreviated to Relays Pty Ltd or Relays P L Other countries Edit nbsp In Singapore a proprietary company name would be named Relays Private Limited abbreviated to Relays Pte Ltd nbsp nbsp In Namibia and South Africa the name of a private company ends with Pty Ltd and that of a public company ends with Ltd Company number EditTo help identify companies more uniquely and concisely many countries have a company number which does not change if the company changes its name nbsp Australian Company NumberSee also EditAustralian company law South African company lawReferences Edit Commonwealth Government of Australia ComLaw Retrieved 30 June 2015 Are you a large or small company Australian Securities amp Investments Commission Retrieved from https en wikipedia org w index php title Proprietary company amp oldid 1176620808, wikipedia, wiki, book, books, library,
