Commonwealth Numbered Acts

COMPANIES ACT 1981 No. 89 of 1981 - SECT 500

Division 3-Companies Carrying on Business Outside the Territory

500. (1) In this Division, ''company'' means-

   (a)  a company incorporated pursuant to this Act or pursuant to a
        corresponding previous law of the Territory; or

   (b)  a foreign company that is formed outside Australia and the external
        Territories and is registered under Division 5.

(2) A reference in this Division to a company carrying on business within a
State or a Territory includes a reference to a company establishing or using a
share transfer office or share registration office in the State or Territory
or administering, managing or otherwise dealing with property situated in the
State or Territory as an agent, legal personal representative or trustee,
whether by servants or agents or otherwise.

(3) Notwithstanding sub-section (2), a company shall not be regarded as
carrying on business within a State or Territory for the reason only that,
within that State or Territory, it-

   (a)  is or becomes a party to an action or suit or an administrative or
        arbitration proceeding or effects settlement of an action, suit or
        other proceeding or of a claim or dispute;

   (b)  holds meetings of its directors or shareholders or carries on other
        activities concerning its internal affairs;

   (c)  maintains a bank account;

   (d)  effects a sale through an independent contractor;

   (e)  solicits or procures an order that becomes a binding contract only if
        the order is accepted outside the State or Territory;

   (f)  creates evidence of a debt, or creates a charge on property;

   (g)  secures or collects any of its debts or enforces its rights in regard
        to any securities relating to such debts;

   (h)  conducts an isolated transaction that is completed within a period of
        31 days, but not being one of a number of similar transactions
        repeated from time to time; or

   (j)  invests any of its funds or holds any property.