Commonwealth Numbered Acts
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CORPORATIONS ACT 2001 - SECT 113
(1) A company must have no more than 50 nonemployee shareholders if it
- be registered as a proprietary company; or
- change to a proprietary company; or
- remain registered as a proprietary company.
- Note: Proprietary companies have different financial reporting obligations
depending on whether they are small proprietary companies or large proprietary
companies (see section 45A and Part 2M.3).
(2) In applying subsection (1):
- count joint holders of a particular
parcel of shares as 1 person; and
- an employee shareholder is:
- a shareholder who is an employee of the company or of a subsidiary of the
- a shareholder who was an employee of the company, or of a subsidiary of
the company, when they became a shareholder.
(3) A proprietary company must not engage in any activity that would require
disclosure to investors under Chapter 6D, except for an offer of its
- existing shareholders of the company; or
- employees of the company or of a subsidiary of the company.
(4) An act or transaction is not invalid merely because of a contravention of
- Note: If a proprietary company contravenes this
section, ASIC may require it to change to a public company (see
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