Write a 5 page essay on Corporations Law in Australia.
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A limited liability company, also called a limited liability corporation, usually functions on a smaller scale than a limited liability partnership (Wikipedia 2008), hence, it’s method of management and, therefore, it’s level of limited liability, though in many aspects the same, does differ from that of a partnership. A company is generally run by the managers, who are responsible for the general functioning of the corporation. Hence, although they are protected by limited liability in that they are just responsible for their investments, they do have to manage any monetary issues that may be faced by the corporation which are beyond the fiscal capacity of the corporation (Wikipedia 2008). The tax liability level might also differ (Wikipedia 2008). On the other hand, a partnership functions on a larger scale, hence, it’s method of management and operation differs, giving it different protection under the liability. A partnership is directly run by its investors (Wikipedia 2008), who are all protected by the liability clause, and generally are not responsible for monetary issues beyond their investment. Whereas they are subject to tax payment, the partnership itself, in some cases, maybe tax transparent (Wikipedia 2008), that is, exempted from paying taxes. Hence, the liability of the partners is decreased.
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