Corporate & Business Law

Monday, October 19, 2015

Word or PhraseDescription
ABNAustralian 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).
ACNAustralia Company Number which is a unique nine digit number issued to a company by the Australian Securities and Investments Commission (ASIC).
Bare TrustA 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 NameA business’ registered trading name.
Buy sell optionsAn 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).
ChargeA security interest over the assets of a company.
ConstitutionRules of a company.
Discretionary TrustA 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 diligenceInvestigation of a business or company.
FranchiseA business using another’s business model under an agreement.
Going concernA business that will continue to operate.
GuaranteeTo provide a promise or assurance that obligations will be fulfilled.
GuarantorA person who provides a guarantee.
Hybrid TrustA 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.
IndemnityAn assumption of liability for another person.
MortgageAn agreement that creates a security interest in an asset between a lender and borrower.
PartnershipAn agreement between parties to carry on a business in common with a view to make a profit.
SecurityAn asset that is pledged to secure a promise or obligation, typically a loan.
SharesA fractional part into which the capital stock of a company is divided.
Shareholders AgreementAgreement of shareholders in a company.
Unit trustA 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 outAn 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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