Corporate & Business Law

Monday, October 19, 2015

Word or Phrase Description
ABN Australian Business Number which is a unique identifier issued to an entity carrying on an enterprise by the Australian Business Register (ABR) operated by the Australian Taxation Office (ATO).
ACN Australia Company Number which is a unique nine digit number issued to a company by the Australian Securities and Investments Commission (ASIC).
Bare Trust A trust in which the beneficiary has a right to both income and capital and may call for both to be remitted into his own name. Often used for self managed superfund borrowings.
Business Name A business’ registered trading name.
Buy sell options An agreement between co-owners of a business granting each other options to buy or sell their respective interests upon the occurrence of specified event (often death or incapacity).
Charge A security interest over the assets of a company.
Constitution Rules of a company.
Discretionary Trust A trust where the beneficiaries to the trust fund are not fixed, but are determined by the trustee pursuant to the terms of the trust deed. Also referred to as a family trust.
Due diligence Investigation of a business or company.
Franchise A business using another’s business model under an agreement.
Going concern A business that will continue to operate.
Guarantee To provide a promise or assurance that obligations will be fulfilled.
Guarantor A person who provides a guarantee.
Hybrid Trust A trust which mixes elements of a discretionary trust and a unit trust so that a beneficiary has a fixed entitlement to some part of the income or capital of the trust but the trustee has discretion to distribute some part of the income or capital.
Indemnity An assumption of liability for another person.
Mortgage An agreement that creates a security interest in an asset between a lender and borrower.
Partnership An agreement between parties to carry on a business in common with a view to make a profit.
Security An asset that is pledged to secure a promise or obligation, typically a loan.
Shares A fractional part into which the capital stock of a company is divided.
Shareholders Agreement Agreement of shareholders in a company.
Unit trust A trust in which the trust fund is equitably divided into units reflecting a proportion of the value of the trust fund. Often used for investments.
Walk in walk out An arrangement where a buyer of a business takes over all existing stock and all debtors and creditors on the settlement day.

 

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