Business Retrived Preference Business Shareholders

Question: Describe about the Business Retrived for Preference Business Shareholders. Answer: Interpretation This constitution consists of: Law which means Corporations Act 2001. Seal meaning a common seal used by the Company. Members are the persons, involved in the business activities of the company, whether members are one or two or more. Directors meaning those persons, controlling and managing the company and taking critical decisions to achieve the goals of the company. Representative is a person appointed as a representative of a company according to the Section 250D of the Law. Secretary meaning a person performing all the secretarial duties for the company. Replaceable Rules Section 134 and 135 of the Corporations Act speaks about the companies which can apply these replaceable rules. The internal management of the company is governed by Section 134 of the Corporations Act which applies by both replaceable rules and constitution. These rules will be applied to all companies which have registered after 1st July 1988. Inspection of Records All the companies should make sure that they keep all the documents and records required by the law. All these necessary documents are to be kept in the registered office of the company for a certain period of time. These documents are to be sent to all the respective persons, involved with the company according to the Section 314 and 316 of the Law or the constitution. All the Directors should determine whether the extent of these documents and records are needed to be available to the members involved with the company. All these documents and the records would be unavailable to all the employees and members of the company; rather it should be available only to the specific persons, for a specific period of time for the purpose of confidentiality. To check all these documents and records, approval is required by the Director, beforehand, without which the members cannot have an access to all these records. Directors will be involved with the minutes of: All the resolutions passed by the concerned Members without a meeting. If there is only one Director, all the declarations made by such directors. Such resolutions and proceedings of all the meetings held by the Directors of the company. It will also include all the meetings of the committee of the Directors. Redeemable Preference Shares Having some preferential rights on the decision making of the company is known as preference shares: Dividend is paid to the preferential share holders in the whole process. Any excess amount of bonus dividend. The preference share holders of the company have certain rights which the equite shareholders do not have it. All the preference shareholders of the company have the basic right to have a participation in the part of excess profits. Not only this, they also have the rights to have a participation in the premium, when the shares are to be redeemed. The company has several preference shareholders, which would be having the rights with the help of which all the preferential rights are available to shareholder. Therefore, there would not be any sort of a bifurcation between either of the shareholders. Company will be having the first four preference shares which is mentioned above. All the rights will be available to all the preference shareholders. Hence, it can be said that the preference shareholders of the company does have certain amount of rights on the profits of the company. References Austliieduau.(2016).Austliieduau.Retrieved19 September, 2016,from https://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s169.html Erik runyon | weedygardennet.(2016).Uciedu.Retrieved19 September, 2016,from https://www.law.uci.edu/campus-life/student-organizations/registration/sample-constitution.html Howtolawco.(2016).Howtolawco.Retrieved19 September, 2016,from https://www.howtolaw.co/draft-a-company-constitution-392134 Reckoncom.(2016).Reckoncom.Retrieved19 September, 2016,from https://www.reckon.com/docs/default-source/docs-forms/company-(pty-ltd)-constitution.pdf?sfvrsn=2