Question

Scenarlo: Abdul and four fnends wish to come together to form a new company. They will need a large warehouse to store their product. They propose to name the company SoftClean Pty Ltd. Abdul will coordinate initial formalities, attend to registration of the company and find a suitable warehouse that the company can use for storage. The friends each promised to contribute $50,000 individually for the new company towards share capital. Aboul instructs a solicitor to prepare the necessary documents for the new company. He finds a warehouse and agrees on a two year lease. He gets a vweb designer to build a website for online sales. After two weeks, none of the friends have paid the $50,000. Two are now considering putting the money elsewhere as they are not sure that SofiClean will be profitable but have not informed Abdul. They have done nothing in regard to the proposed company. The solictor has now presented a bill for the work. The landlord has an invoice for the first quarter of the year. The web designer has also asked for a payment The company is yer to be registered and it now does not seem likely that it will be registered. Abdul is now very worried. PART A Abdul wants to know whether he will be liable for all the expenses incurred so far and whether he can force his friends to pay all or part of what has been incurred for the compary that was to be formed. Explain the provisions of the Corporations Act 2001 (Cth) that would help Aboul understand who may be liable for the various amounts that he has contracted for on behalf of SoftClean Pty Ltd

Answer 1

if any comapny wants to register then it must be submitted its documents to the prescribed authority in prescribed form. the signing authority can be any director or authorised person. all the documents will be submitted f the concerned persons. now in the legal documents that all will be responsible for payment of dues and will be liable for liability payments.

as per question Abdul is froming company with his four friends and payments are due but the company is not still registered , that is in process. but all other persons refused to make certain payments like fees, rent, web designer charges etc. thus that will borne by all the directors who are involved in the formation of company not only Abdul will responsible for payments. that persons will be liable for their share.