Problem Set 1 Essay
Case studies and problem sets
Problem Set 1
The following problems and questions should be answered after you have read Chapters 1 and 2.
1. GML is a public company. Its shares are listed for quotation on the ASX. What does it mean to say that a company is listed? Are all public companies listed on the ASX?
See [¶1-120], [¶1-140] and key terms [¶1-500]
If a public company is listed on the ASX, members of the public can buy and sell securities (such as shares) issued by the company on the secondary market conducted by the ASX. People wishing to buy or sell securities must do so through a broker who is a participant in the ASX.
Listed companies are required to comply with the ASX’s Listing Rules, which impose some …show more content…
4. Is Australian corporations legislation Commonwealth law or State law?
See [¶2-200] – [¶2-220]
The Corporations Act is a piece of legislation – that is, legal rules contained in a statute prepared and adopted as law by the Parliament. It is an Act of the Commonwealth (that is,
Australia’s national) Government, rather than of a state government such as Victoria or
Western Australia. Prior to 2001, corporations law was contained in state Acts, rather than in a Commonwealth Act.
It is important to understand that the Commonwealth Parliament’s power to make laws with respect to companies rests for the most part on the referral of power made by the states for the purposes of s51(xxxvii) of the Commonwealth Constitution. The referral is limited both in its scope and its duration.
5. What are the ASX Listing Rules? To which companies in the case studies do they apply?
Companies are ‘‘listed’’ companies if their securities are listed for quotation on the public stock market conducted by the ASX.
The ASX is a private company that provides a trading facility for securities issued by companies listed on it. Listing means that securities issued by the company can be bought and sold by investors through a public, organised, listed