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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.