The company form of business structure is one of the most common in the world today. As discussed in the previous chapter, there are a variety of benefits that make the corporate form the most appealing for many business operators, and also for investors and other stakeholders. This chapter examines this dominant business structure in detail, and explains the regulations in place around it. It identifies the legislation and other regulatory tools that enable the formation of companies in Australia, the process of incorporation and its legal consequences, what it means to be a member of a company, how companies are managed and the duties that are owed by the persons in control, companies financial reporting obligations, and the processes involved when a company becomes insolvent or otherwise needs to be wound up. You will follow a practical example across the course of this chapter, identifying how the company business structure would affect this startup business, and the impact that the legal regulation in this area will have on the individuals within and associated with this business.

This chapter examines a range of alternative mechanisms arising from a charity’s legal form or status as a charity that potentially restrain a charity’s accumulation activities. Key amongst them are administrative (or deviation) schemes and cy-près schemes, which enable modification of the administrative machinery or charitable purpose of charities. As these mechanisms permit the rate of accumulation to be directly altered or accumulated assets to be distributed, they are explored under the sub-heading ‘directly controlling accumulation’. External administration, including winding-up or replacement of charity controllers, is a fairly drastic and indirect method of controlling accumulation that is separately considered, as well as member action in controlling accumulation. Examples are drawn primarily from the United States and Australia, but with material discussion of the United Kingdom, Canada and New Zealand also.