SECTION 113 PROPRIETARY COMPANIES
113(1) [Limitation of non-employee shareholders]
(a) be registered as a proprietary company; or
(b) change to a proprietary company; or
(c) 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).
113(2) [Application of s 113(1)]
(a) count joint holders of a particular parcel of shares as 1 person; and
(b) an employee shareholder is:
(i) a shareholder who is an employee of the company or of a subsidiary of the company; or
(ii) a shareholder who was an employee of the company, or of a subsidiary of the company, when they became a shareholder.
113(3) [Share offers]
(a) existing shareholders of the company; or
(b) employees of the company or of a subsidiary of the company.
113(3A) [Strict liability offence]
Note: For strict liability, see section 6.1 of the Criminal Code.
S 113(3A) inserted by No 117 of 2001, s 3, Sch 1 (effective 15 December 2001).
113(4) [Effect of contravention]
Note: If a proprietary company contravenes this section, ASIC may require it to change to a public company (see section 165).