Proprietary company | Practical Law
Proprietary company
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Proprietary company
Practical Law ANZ Glossary w-005-9421
(Approx. 3 pages)
Glossary
Proprietary company
A company that is registered as, or converts to, a proprietary company under the
Corporations Act 2001
(Cth)
(CA 2001
).
A proprietary company must:
Have share capital (either as a company limited by shares or as an unlimited company with share capital).
Have no more than 50 shareholders that:
are not employees of the company or a subsidiary of the company; or
were not employees of the company or a subsidiary of the company when they became shareholders.
Not do anything that would require disclosure to investors under Chapter 6D, except for an offer of shares to:
existing shareholders of the company; or
employees of the company or a subsidiary of the company.
(
Sections
45A
and
113
, CA 2001
).
For more information, see
Practice note, Types of company under the Corporations Act 2001 (Cth): proprietary companies
.