In Relation to the Decision in Industrial Equity Ltd V

question 50

Multiple Choice

In relation to the decision in Industrial Equity Ltd v Blackburn [1977] HCA 59 which of the following statements is NOT correct?

• A)Holding and subsidiary companies have separate legal obligations.
• B)A holding company must pay tax on the dividends of a subsidiary.
• C)A holding company can pay a dividend out of a subsidiary company's profits.
• D)A holding company is a separate legal entity from a subsidiary.

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Definitions:

Registered Agent

An individual or business entity authorized to accept legal documents on behalf of a corporation or LLC, facilitating legal processes.

Incorporators

Individuals or entities involved in the legal process of forming a corporation, responsible for its initial setup and registration.

Alien Corporation

A business that is incorporated in a foreign country.

Federal Law

Legislation enacted by the national government or Congress of a country.