1. Part 1 Preliminary
Part 1 defines key terms used in the CO. For example,
- What is a “private company” and what is a “public company”?
- What is the difference between a “holding company”, an “associated company” and a “subsidiary”?
- What is an “ordinary resolution” and what is a “special resolution”?
It is important to note that certain key terms defined in the CO may not carry the same meaning as used in daily language. For example, the term “responsible person”, in daily language, would simply mean someone who is responsible for doing something. But in the CO, it means a company’s officer or shadow director who authorizes or permits or participates in the contravention of the CO or failure to comply with a requirement or direction. A “responsible person” may therefore be subject to criminal sanction in such context.
It is therefore essential to make sure you are acquainted with the use of certain terms used in the CO.