Companies 043-04010000

Companies are categorised into 2 main types when determining entitlement to income support payments and concessions under the Social Security Act 1991 and the Veterans’ Entitlements Act 1986:

• public companies
• private companies

Customers can hold investments in public companies. For example, shares, futures, options, warrants and derivatives. Shares in listed and unlisted public companies are treated as financial investments.

A private company is a legal entity registered under Corporations Law, set up to hold property or investments, or to run a business. Overseas companies not registered under Australian Corporations Law may still be assessed under Trust and Company rules if they are considered to be designated and controlled private companies. Private companies are owned by shareholders and managed by the directors who are elected by the shareholders.

See the Process page for information on the life of a company and information for Complex Assessment Officers on how to assess a company in receivership or liquidation.

• A company is a separate legal entity from its shareholders and may exercise the same powers as a natural person. For example, a company can hold assets in its own name and borrow funds
• The directors control the running of the company on behalf of the shareholders
• The directors are elected by the shareholders at the company’s annual general meeting
• A shareholder’s liability for the debts of the company is limited to the amount of the nominal value of their shares that remains unpaid
• A company will continue to exist in the events of death or bankruptcy of shareholders, or sale of shares by a shareholder
• Private companies are not allowed to raise capital from public subscriptions

CAOs provide specialist advice about a customer’s qualification for an income support payment or other benefit when the customer is involved in a private company.

The delegation of a customer’s qualification for an income support payment or other benefit is with a Service Officer however CAOs have the delegation to determine the income and assets to be maintained from a customer’s involvement in a private company. The attribution decision is made by the CAO based on information provided on the Private Company (MOD PC) and accompanying documents.