Question

Ruprecht and Lawrence are partners in Trident Holdings, a business which manufactures synthetic cork products. The business is growing and Ruprecht and Lawrence are keen to obtain further capital, export their products and also reward ten loyal long-term employees who have been with them since they started the business. They decide to change their business structure to a proprietary limited company and request your advice as to the following matters:

(a) What is the purpose of the Small Business Guide produced by ASIC?

(b) In what way can a proprietary limited company structure be used to reward employees?

(c) What is the maximum number of shareholders allowed for a proprietary limited company?

(d) Can the business continue to be called Trident Holdings? If not, what changes must be made?

(e) What is the difference between a small proprietary company and a large proprietary company?

(f) Ruprecht and Lawrence How may Ruprecht and Lawrence use the structure of the proprietary limited company to raise capital to grow the business?

(g) Why is a company structure beneficial for a business involved in export?