Business Law

Shareholders Rights & Directors Duties (G_S4M5)

This course develops understanding and application of the law relating to directors and management, members’ rights. Topics include: Shareholder Rights; Board Structure & Sub-Committee; Directors’ Roles & Duties; and Risk & Insurance.

The means of becoming a member of a company in Australia.

Section 231 of the Corporations Act 2001 sets out ways of becoming a member. In practical terms there are several methods of becoming a member of a company:
• With the member’s consent, being named in the application lodged with the ASIC s 120 for registration.

The member’s name must be entered in the register of members.
• Application And Allotment:
This is the way in which membership results from a contract with the company.
The application is the offer and acceptance made by allotment, which is communicated to the offeror by a letter of allotment. Membership of the company does not occur until the allottee’s name is entered in the register of members.
• Transfer Of Shares:
Where a shareholder sells shares in a company to another person, the buyer of the shares does not become a member of the company until his/her name is entered in the register of members and the seller does not cease to be a member until his/her name is removed from the register.

Upon the completion of this module, users will be able to:
• Critically apply the laws relating to: Shareholders Rights
• Demonstrate the capacity to apply legal reasoning and research to generate appropriate responses to legal problems in Directors Roles & Duties.

TIME: Up to 2 Hours

• No prerequisites.
• No materials distributed.
• No formal assessments required.
  • S4. Law - Lecture 5 - Shareholders Rights / Directors Roles & Duties
  • S4. Law - Course Linkage Map
  • S4. Law - Course Linkage Table
Completion rules
  • All units must be completed
  • Leads to a certificate with a duration: Forever