John Wants to Set Up a Proprietary Company with Only

question 7

Multiple Choice

John wants to set up a proprietary company with only himself as director and himself and his wife as the only shareholders.This is:

• A)not allowed under the Corporations Act, because the company must have at least 5 shareholders
• B)not allowed under the Corporations Act, because the company must have at least 2 directors
• C)allowed under the Corporations Act
• D)not allowed under the Corporations Act, because the company must have at least 2 directors and 5 shareholders

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Definitions:

Incubation

A process or period of development and preparation, often used in reference to ideas, projects, or entrepreneurial ventures.

Reflective Thought

A careful consideration and analysis of one's own thoughts and feelings, often as a part of the decision-making process or for self-improvement.

Subconsciously

Pertaining to thoughts, feelings, or actions that occur without conscious awareness, influencing behaviors and decisions.

Institutional Adaptation

The process by which institutions evolve and adjust to changes in their environment, maintaining or enhancing their functionality.