Legislations Needed in the Conduct of a Business in Australia - Case Study Example

Case Study Legislations needed in the conduct of a business in Australia Table of Contents ment of the problem 3 Analysis 4 Registration processes of trade mark, trade name and business 4 Registration form procedures 6 Decision on the kind of business structure the company will take. 6 In holding the event in public place, what are the rules of the City government? 7 In rejecting the three applicants on discriminatory reasons, are they violating any rule? 8 Finalizing a contract acceptable to both parties. 9 Letter of Intent 9 Contract of Agreement 10 Note to the contract of agreement 11 Findings and conclusion 11 References 12 Case analysis Legislations needed in the conduct of a business in Australia Statement of the problem: What are the legislations that Even!lation needs to follow in the conduct of their business. Event!lation is a new company wishing to start business in Australia. The company specializes in organizing outdoor festivals. The company has to choose between single proprietorship or a corporation as the form of their business. What would be the most advantageous set up for this company? In registering their business, the company has to come up with a trade name, logo or trade mark for their business. What are the requirements for the registration of a TM trademark? After having a TM and business name, the company has to get a business permit to operate in the locality they intend to operate. What are the procedures to be followed in registration?. During their operation after successfully registering the business, the Smithtown Business Association Inc, a non-profit community organization requested for their services to organize a one day festival on a weekend, Sunday in June. They plan to close the main street for the festival. The festival will showcase food exhibits, features of local arts, crafts and wines. A stage will be set up at one end of the main street, closing it to traffic. Are there ordinances regarding closing of main streets, holding of festivals in public places? The company will be paid $6000 after completion of the event. To finalize the transaction, what are the necessary terms to be stipulated in the contract? The company requested for assistance from the homeowners association for some administrative staff to help them in setting up of the event. The homeowners gave a list of applicants but rejected three applicants for various discriminatory reasons. Is the decision of the Association working against discrimination legislation in Australia? Analysis The above issues relating to the operations of the company will have to be resolved one by one before the company could start business operations. Registration processes of trade mark, trade name and business. A trademark is a logo or name used by the company to distinguish them from others in the same category of business. Registration of a logo as a trademark for a business falls under the Trade Marks Act of 1995 and in this case the trademark “Event!lation has to be registered. According to this Act, registration of trademark gives protection and exclusive proprietary rights to the owner. (Starting business in Australia Trade Marks) For instance the trademark of Yahoo, is exclusive for their own use, and anybody infringing on their rights is punishable by law Several companies in Australia specialize on patent and trademark rights that it would be advisable for the company to seek professional services to save on time. A trademark search fee of $40 is charged and takes a day for search results. Once the search for TM produced good result, the company is now ready to register their chosen trade mark, which in this case is Event!lation has been chosen for its trademark. Application procedures require the examination of the order of filing to see if the requirements of the Trade Marks Act of 1995 are met by the applicant. There is a waiting time period logged between filing and examination of the applications due to the volume of transactions. Details of the application will be announced at the Official Journal of Trade Marks once the application is accepted. If nobody opposed for the registration of such trademark within 3 months, the company trade mark will be approved for registration after the applicant pays the corresponding fee within the 6 months period. A Certificate of Registration will be issued to the owner and will be registered in the official Register of Trade Marks. Its effectivity commences on the date of filing of application. A trade mark and company or domain name of the business is different from each other. Under the Corporations Law, a company name or business name has to be registered in the Australian Securities and Investment Commission. Another registration is required for a business name. In this instance, Event!lation needs to register the business name, or the company name to be used in the territory within which the company will operate. Event!lation, in this case, will subscribe to the territorial legislations where the company will do business. Registration procedures Applicant for registration must complete ASIC Form 201 “Application for Registration as an Australian Company, obtain a certificate of incorporation and an Australian company number (ACN). Registration takes one day and payment is AUD 400. Applications can also be lodged in thru on line connections. Before submission, applicant is advised to find out on the availability of the name chosen for the company. (Starting business in Australia ) Next procedure, applicant gets an Australian Business Number from the Tax Authority.. This takes one day, and has no charge to applicant. If Event!lation plans to do business outside its territory, the business name must be registered under the laws of each one state. State legislations may differ from each other territory Registration of business name is compulsory and must be completed before the business starts. Decision on the kind of business structure the company will take. Eint!lation has a choice among the six forms of business structures, and the choice will depend on which legal and tax advantage will work of the company’s interest. Best choices are limited to Sole Proprietorship and Corporation. Of course, there are the forms of partnership which has limited propriety. For purposes of this company and study, only two business structures will be considered, the sole proprietorship and a corporation. The advantages of the corporation outnumber that of the corporation as seen in the table below: Sole ownership ADVANTAGES Corporation ADVANTAGES Minimum legal restrictions The shareholders (owners) of the Corporation are protected from liability when the business is sued Less paper works The owners have their liability limited to the amount they have paid into their share of stock Easy to dissolve Perpetual Duration of the Company unless specified otherwise in the Certificate of Incorporation The operations of a Corporation are not affected by the transfer of shares, or death of a shareholder Corporations may own property, sue, and be sued due to their status as a separate legal entity Source: “Incorporating a Business” . Companies Inc. There are disadvantages that should be thoroughly considered though. Companies Inc., in a website article, “Incorporating a Business” cited the following disadvantages: Sole ownership Disadvantages Corporation disadvantages Unlimited personal liability for debts and liabilities of the business Registration with government registries Owner can lose personal assets in law suit Obtain Federal tax number Business terminates upon death of owner Make S-corporation designation Limited ability to raise capital Open company bank account File necessary documents Consult with Tax professional annually Source: “Incorporating a Business”, Companies Inc. In holding the event in public place, what are the rules of the City government? Territorial rules vary according to State. In this particular area, the Smithtown Business Association, Inc. is more knowledgeable about regulations in closing of streets for festivals. It may be a wise move for Event!lation to request the association for an information on such rules before any negotiations can proceed. Otherwise, plans will have to change if street closure for events is not allowed. In rejecting the three applicants on discriminatory reasons, are they violating any rule? Both the Association and the company will violate the Anti-Discrimination Act {ADA} of 1977 wherein it prohibits discrimination on sex [pregnancy included], disability and age. (Wikipedia) The law describes such discrimination as unlawful. Therefore, they cannot discriminate on Maria because she is pregnant. Pregnancy does not create a wrong image because it does not consist of immorality. They cannot discriminate on Louise because of her “dwarf ness”. This could be considered in the area of disability which is unlawful. The thing is, she would do good to the festival because of her extensive experience in administration and organizing community events Raymond, at 67, as long as he is capable for work, should not be discriminated upon. Age is one of the considerations in ADA of 1977. According to this legislation, “The Act renders unlawful racial, sexual and other types of discrimination in certain circumstances and promotes equality of opportunity for all people”. Therefore, all things should be considered equal and weighed for opportunities in work and giving the three applicants a fair chance of getting employed Finalizing a contract acceptable to both parties. A legal contract binds the obligation of both parties, on the part of the Association, their obligation to pay Event!lation the subscribed amount of $6000. On the part of Event!lation, the contract will stipulate in explicit terms, the range of duties they will perform during the festival. A clause must be added in the contract for the reimbursement of the expenses for the holding of the activities in the festival that is apart from the contracted amount for services.. The term should also include such other services required from both parties. The contract must be signed by both parties and has to be notarized to be binding. A separate letter of intent must be sent by Event!lation to the Association indicating willingness or acceptance. LETTER OF INTENT (sample letter) ™ NSW AUSTRALIA April 30, 2008 Smithtown Business Association, Inc NSW Australia Attention: The Secretary Dear Sir: Thank you for your interest in contracting our services in organizing a community event in your town. Please be informed that we are accepting the job order, subject to certain terms and conditions we have specified in the attached Contract of Agreement. We understand from your letter that you intend to have the main road closed to the traffic for the duration of the one-day festival. We are not very much familiar of the legislations in your place about road closure for events. In this connection, may we request that you please verify first from the City Government the specific rules we have to comply with before any plans could be done. With regards to the three applicants you have rejected, I think we will violate the Discrimination Act 1075 for employment if we do not take them into consideration during our employment review process. The amount of $6000 is acceptable to us, but would appreciate very much if you could give us a 50% down payment for the project. I look forward to the successful event. Again, thank you and regards. Very truly yours, Manager CONTRACT OF AGREEMENT FOR AND IN THE AMOUNT OF SIX THOUSAND DOLLARS, we, Event!lation and SMITHTOWN BUSINESS ASSOCIATION (provide addresses) do hereby bind ourselves and agree to do the following services, terms and conditions: ON THE PART OF EVENT!LATION: 1. Event!lation will organize a street festival for the Smithtown Business Association, Inc. to be held on Sunday, June29, 2008 2. Event!lation i will construct a stage located at the end of the main street for the musical performances. 3. That booth or marquee will be constructed to serve as a restaurant for one day. This booth will showcase local arts, crafts, food and wine to promote the local industry, cultural life and ethic diversity of Smithtown and the surrounding area. 4. Fun fair rides will also be provided by Elli for the day 5. Posters, decoration and necessary advertisements will be undertaken by Event!lation... SMITHTOWN BUSINESS ASSOCIATION, INC. on their part will do the following: 1. Execute payment of the contracted mount of $6,000 in full upon completing of the festival to Event!lation. A down payment of 50% or $3,000 will be done upon approval of the contract, balance upon accomplishment of the services. 2. Smithtown Business Association will reimburse Event!ation for all expenses incurred for the preparation, organization and other incidental expenses for the festival. 3. Smithtown will cooperate with Event!lation for contacting businessmen, traders and those interested to join the fair as Smithtown Business Association, Inc. has an access to homeowners and businesses in the area. 4. Smithtown Business Assn. Inc. will undertake the securing of clearances for holding of street festival and closing of the streets from the local authorities. 5. Musical performers, food and showcase items will be provided by the Association. THE TERMS AND CONDITIONS HAVING BEEN CAREFULLY SCRUTINIZED AND REVIEWED BY BOTH PARTIES, WE, EVENT!LATION AND SMITHTOWN BUSINESS ASSOCIASTION, INC. DO HEREBY AGREE AND SIGN OUR CONFORMITY IN THIS CONTRACT OF AGREEMENT _________________ ------------------------------ President, Smithtown Business Assn. Manager, Event!lation WITNESSES ------------------------------------ ----------------------------------- NOTARY PUBLIC ACKNOWLEDGEMENT Note to the Contract of Agreement. This contract represents interests of both parties and constitutes a valid legal document when signed and properly notarized. Non performance of any provisions herein stated will render the contract questionable. Findings and conclusion A company who wants to start a business has much legislation and permits to consider. Everything should be followed to avoid lawsuits, fines and other penalties. From the start to the finish, guidelines and procedures are established for enforcement. Otherwise, if there is no law, there would be chaos and lack of order in business that will to the disadvantage of every body.. A company has however the right to choose of the nature of his business, trademarks and company business name as long as it conforms again to certain legislations. As in this case, it is advisable for the company to choose a corporation style of business to be able to get a bigger capital since their line of business needs a bigger exposure. The logo proposed would also be their registered trademark. ™ It will have to be presented to the Trade Marks Authority for approval which takes about three months for processing. Registration of business name in a territory takes only one day and could be done on line for convenience provided it is filed in proper form and the business name is properly scanned for ownership. Having done all these, the company is now ready to start the business. References: “Anti-Discrimination Act 1977”. Wikepedia, the free encyclopedia. 29 August 2008. “Incorporating a business”. Companies Inc. 30 August, 2008 . “Starting Business in Australia”. Doing Business. 29 August, 2008. http://www.doingbusiness.org/ExploreTopics/StartingBusiness/ Details.aspx?economyid= “Starting Business in Australia: Trade Marks”. IP Australia. 29 August, 2008 Read More