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Ronald Registers a Company Called McDonald Pty Ltd

Question 20

Multiple Choice

Ronald registers a company called McDonald Pty Ltd. Ronald is the sole shareholder and sole director of McDonald Pty Ltd. McDonald Pty Ltd does not have a secretary or any other officers or employees and has no assets other than $500 in a bank account. It has no business operations. Which of the following is true?


A) If McDonald Pty Ltd does not have a constitution, the replaceable rules apply to McDonald Pty Ltd.
B) McDonald Pty Ltd has violated the Corporations Act 2001 (Cth) as all companies need at least two directors.
C) McDonald Pty Ltd is a "small proprietary company" under s 45A(2) of the Corporations Act 2001 (Cth) .
D) McDonald Pty Ltd could raise capital by offering shares or debentures to a large number of people by complying with the fundraising provisions in Ch 6D of the Corporations Act 2001 (Cth) .
E) Both (a) and (c) are correct.

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