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10.7 Cooperatives 325 11.4 Separate legal entity 356
Trading cooperatives 325 11.5 Corporate groups 358
Non-trading cooperatives 328 Legal issues relating to corporate
The difference between cooperatives groups 359
and not-for-profit organisations 329 11.6 The corporate veil 359
10.8 Incorporated associations 329 The legal principle of the corporate
Key features of an incorporated veil 360
association 331 The corporate veil in relation to corpo-
Advantages of an incorporated rate groups 361
association 332 Lifting the corporate veil 361
Disadvantages of an incorporated 11.7 Limited liability 364
association 332 Summary 367
10.9 Hybrid business structures 332 Key terms 368
Why have hybrid business Exercises 368
structures? 333 Acknowledgements 370
Examples of hybrid business
structures 334 CHAPTER 12
10.10 Business names 335
Company constitution 371
Registration 335
Introduction 372
What names cannot be registered?
12.1 Rules and procedures 372
336
Companies established prior to
Display and use of the business
July 1998 373
name 337
Companies established after
Summary 338
July 1998 373
Key terms 338
Exercises 339 12.2 Replaceable rules 374
Acknowledgements 342 12.3 The company constitution 378
When is the company constitution
CHAPTER 11 adopted? 378
The contents of the company
Companies and constitution 379
incorporation 343 12.4 Objects clause 380
Introduction 344 Practical implications of the objects
11.1 Company regulation in Australia 345 clause 381
The Corporations Act 2001 (Cth) 345 12.5 Who is bound by the replaceable rules
and constitution? 383
11.2 Classes of companies 346
Contract between the company and
Proprietary companies 346
each member 384
Public companies 347
Contract between the company and
Listed or unlisted 348
each director and company secretary
Member liability 349 384
Comparing company types 350 Contract between a member and each
Conversion between proprietary and other member 385
public company status 352 Remedies for breach of statutory
11.3 Starting a company 352 contract 386
Step 1: Choose a company structure 12.6 Changing the rules of a company 386
352 Process to change the constitution
Step 2: Choose a company name 353 387
Step 3: Decide how to operate the The purpose and fairness of the
company 354 change 387
Step 4: Understand the legal Application of changes to existing
obligations 354 members 388
Step 5: Obtain consent from officers, Entrenched provisions 388
members and occupiers 354 Summary 389
Step 6: Formally register the Key terms 389
company 355 Exercises 390
Step 7: Meet legal obligations Acknowledgements 391
regarding use of company name,
ACN and ABN 355
Pdf_Folio:vii
CONTENTS vii
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CHAPTER 13 Theories of corporate governance 446
A working definition of corporate
Membership, members’ governance 447
powers and dividends 392 Corporate governance and company
management 449
Introduction 393
15.2 Officers 449
13.1 Members as owners 393
Directors 450
Membership 395
Company secretary 452
Recording membership 395
Senior managers 453
Limit on members’ rights 403
15.3 Roles and powers of directors and
13.2 Members’ meetings 404
members 453
Types of members’ meetings 405
Directors 454
Calling a meeting 406
Members’ powers over directors 459
Proceedings at members’ meeting 411
15.4 Appointment, remuneration,
13.3 Dividends 416
resignation, removal 460
Entitlement to dividends 416
Appointment of a director 460
Payment of dividends 417
Directors’ remuneration 463
Consequence of improper dividend
Resignation and vacation of office 464
payment 418
Removal of directors 464
Taxation of dividends 418
Summary 466
Summary 419
Key terms 467
Key terms 420
Exercises 467
Exercises 420
Acknowledgements 469
Acknowledgements 422
CHAPTER 16
CHAPTER 14
viii CONTENTS
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16.6 The duty to prevent insolvent trading CHAPTER 18
487
The duty to prevent insolvent trading Financing a company via
under s 588G of the Corporations equity or debt 524
Act 488
Introduction 525
When is a debt incurred? 489
18.1 Choosing between equity and debt 525
Other requirements as to incurring
18.2 Issuing shares 527
debts 491
Definition of a share 527
The time at which a company becomes
Share issues 528
insolvent 491
The statutory power to issue shares
Reasonable grounds for suspecting
529
insolvency 491
18.3 Different types of shares 530
Defences to a breach of s 588G 491
Ordinary shares 531
Penalties and remedies 492
Bonus shares 531
A safe harbour against liability for
insolvent trading 492 Preference shares 531
Summary 494 Partly paid shares 532
Key terms 494 Equity crowdfunding 532
Exercises 495 18.4 Debt financing 533
Acknowledgements 498 18.5 Debentures 535
Statutory requirements to issue
CHAPTER 17 debentures 536
Parties to a debenture 536
Directors’ and officers’ 18.6 Security for debts 537
duties B 499 Registration of a security 537
Introduction 500 Circulating and non-circulating security
17.1 Good faith 500 interest 538
17.2 Best interests of the company 502 Negative pledges 539
Members’ interests — individuals, classes Romalpa clause 540
and as a whole 503 Voidable antecedent transactions in the
Creditors’ interests 503 event of insolvency 540
Employees’ interests 504 Summary 542
Corporate groups’ and nominee offi- Key terms 542
cers’ interests 505 Exercises 543
17.3 Proper purpose 506 Acknowledgements 544
Determining a breach of the duty of
proper purpose 506 CHAPTER 19
Defences for breach of proper Receivership and
purpose 507
17.4 Conflict of interest under general law administration 545
508 Introduction 546
When a conflict may arise 508 19.1 Insolvency 546
Defences 512 The test for insolvency 547
17.5 Statutory provisions relating to conflict 19.2 Receivership 548
of interest 513 Appointment of the receiver 549
Related party transactions 514 Effects of receivership 550
Defences 515 Role of the receiver 550
17.6 Remedies and penalties for breach of Powers of the receiver 553
duty 517 Duties and liabilities of the receiver 553
Summary of consequences for breaches Termination of receivership 554
of directors’ duties 518 19.3 Voluntary administration 554
Summary 519 Appointment of an administrator 555
Key terms 519 Effects of administration 556
Exercises 520
Role of the administrator 556
Acknowledgements 523
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CONTENTS ix
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Powers of the administrator 556 20.2 Appointment of a liquidator 566
Duties and liabilities of a voluntary Powers of the liquidator 567
administrator 556 Duties and functions of a liquidator
Process of voluntary administration 567
557 20.3 Property available to a liquidator 568
Deed of company arrangement 558 Voidable transactions 568
Termination of voluntary Types of voidable transactions 569
administration 558 Defences for creditors 573
Summary 560 20.4 Final distributions and deregistration
Key terms 560 573
Exercises 560 Distribution to creditors 574
Acknowledgements 561 Deregistration of company 575
Summary 576
Key terms 576
CHAPTER 20
Exercises 576
Liquidation 562 Acknowledgements 578
Introduction 563
Appendix 579
20.1 Liquidation or winding up 563
Index 608
Voluntary winding up 565
Compulsory winding up 566
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PREFACE
The first edition of Wiley’s Business and Company Law was a game-changing new teaching and learning
resource. It was concise, accessible and focused on applications of commercial and corporations law to
business.
Designed and delivered as a hybrid text plus eBook, students using the second edition of Business and
Company Law will benefit from the superior educational design, multimodal presentation of materials
and interactive functionality that the digital format offers. The eBook integrates the following media and
interactive elements into the narrative content of each chapter.
• Author introduction videos open each chapter on business law to familiarise and engage students with
the topic at hand.
• Animated interactive cases (based on a fictitious company, Racing Parts) in the company law chapters
allow students to apply the principles explained in the narrative to a range of scenarios.
• Video interviews with legal practitioners provide insights into real world cases, legal processes and
contemporary issues.
• Video interviews with leading company law academics explain in-depth of some of the more ‘technical’
points of company law, in particular as it relates to business.
• News media of topical company law stories illustrates applications of corporate law in the contemporary
business environment.
• Narrated animations step through the more complex legal concepts and processes.
• Interactive revision sets, at the end of each section, help students to understand their strengths and
weaknesses and provide remediation to correct areas of misunderstanding.
Business and Company Law 2e takes students on an interactive and engaging journey through the key
topics in the typical one-semester course.
Pdf_Folio:xi
PREFACE xi
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ABOUT THE AUTHORS
Nick James
Professor Nick James is the Executive Dean of the Faculty of Law at Bond University. He is a former
commercial lawyer, and has been practising as an academic since 1996. His areas of teaching expertise
include business and commercial law, ‘law in society’ and legal theory, company law, the law of succession
and property law. He has won numerous awards for his teaching including a National Citation for
Outstanding Contribution to Student Learning, and he is the author of three texts: Business Law, Critical
Legal Thinking and The New Lawyer (with Rachael Field). He has written numerous journal articles, book
chapters and conference papers in the areas of legal education, critical thinking and critical legal theory.
Professor James is the Director of the Centre for Professional Legal Education, Editor-in-Chief of the
Legal Education Review and a member of the Executive Committee of the Australasian Law Teachers
Association (ALTA).
Ellie Chapple
Professor Ellie Chapple, LLB, LLM, SJD, is a Professor in the QUT Business School at the Queensland
University of Technology and solicitor admitted to the Supreme Court of Queensland. She is research
leader for the Accounting for Social Change Research Group. During her academic career at several
Australian universities, she has consistently taught corporations law, and related areas such as corporate
governance, auditing and securities law, to undergraduate and postgraduate law and business students.
Ellie’s research interests relate to the regulation of and compliance by companies of their non-financial
reporting and disclosure. Ellie publishes her research in regional and international journals in company
law, accounting and finance. She is co-editor of the journal Accounting Research Journal.
Alex Wong
Alex Wong, BCom, LLB, MTax, CA and CFP Registered Tax Agent, Registered SMSF auditor, is a
Sessional Lecturer in tax law, company law and risk insurance at RMIT, where he has also acted as the
course coordinator for company law. In addition, Alex teaches tax law and company law at the postgraduate
and undergraduate level at other universities. Alex also runs a tax, strategic and financial services practice
in Melbourne. He has over 30 years’ professional work experience and 20 years’ experience teaching at
universities. Alex is strongly interested in bridging the theoretical world of corporate and tax law to the
practical applications of those principles and ensuring that business students understand how to apply these
principles in the real world as accountants and business advisers. Alex is also currently undertaking his
PhD in financial services.
Richard Baumfield
Richard Baumfield, BBus, LLB, LLM, is an Adjunct Assistant Professor at Bond University. He teaches
primarily in the area of corporate law, teaching to both law students and business students. Richard was
previously a partner with the New York law firm of Andrews Kurth, where he specialised in corporate
restructuring. In addition to his work at Bond University, Richard sits on a number of company boards —
both listed and privately owned companies.
Richard Copp
Richard Copp practised as a barrister for 15 years before joining Griffith Business School to spend more
time with his family and ‘give something back’ to students. In practice, Richard specialised in commercial
law; corporate insolvency (including company liquidations, voluntary administrations, receiverships and
schemes of arrangement); trade practices and competition law; and income tax (including tax planning for
the GST). His other legal interests include trusts, banking/finance and superannuation law, administrative-
and government-related law, and mediation/arbitration. Richard was admitted to practise as a barrister after
a career in commercial practice, mainly as a consultant economist, corporate adviser and banker. In those
roles, he had extensive experience as an expert witness in court proceedings. Richard has advised and acted
for a wide range of companies, including some of Australia’s largest publicly listed corporations, federal
and state government agencies, banks, merchant banks, and accounting firms. Richard has also lectured
part-time in finance, banking, economics and law for a number of years at various Australian universities.
He has degrees in Economics and Commerce (with Honours), a Masters degree in Law, and a PhD in
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restrictive trade practices. Richard is admitted to practise in the Supreme Court, Federal Court and High
Court. He frequently lectures at university and professional seminars.
Robert Cunningham
Professor Robert Cunningham is Dean and Head of Curtin Law School, barrister within Murray Chambers
and a Fellow of the Australian Academy of Law. His main research interests relate to information
governance and his legal practice is principally concerned with Federal Court matters such as corporate
law, consumer protection, native title and intellectual property. He continues to teach into several subjects,
including corporate law and World Trade Organization law.
Akshaya Kamalnath
Dr Akshaya Kamalnath worked as a Lecturer in Deakin Law School until June 2018 and is now a lecturer
in the AUT Law School at the Auckland University of Technology. Akshaya holds a Master of Laws
(LLM) degree from the New York University School of Law in New York and a Bachelor of Art/Laws
(BA/LLB) degree from the Nalsar University of Law in Hyderabad, India. She completed her PhD at
Deakin University. Her doctoral thesis was entitled, ’Gender diversity on company boards: a corporate law
analysis’. Her articles have been published is journals such as the Federal Law Review, Australian Journal
of Corporate Law and Albany Law Review.
Dr Katie Watson
Dr Katie Watson, BA(Hons), JD, LLM, PhD, is a Scholarly Teaching Fellow at the University of Newcastle
Law School. Katie teaches across undergraduate and graduate programs, focusing on excellence and equity
in higher education. Having balanced higher education with family responsibilities for over 10 years, Katie
is committed to supporting diverse student experiences through innovative methods of teaching legal
skills and content. Katie’s doctoral research employed discourse analysis to compare corporate gender
diversity laws and policies around the world. This research, in conjunction with research on the history
of the corporate form, highlighted the powerful impact of understanding purpose. More recently, Katie’s
research interests have applied these insights about purpose to seek ways to enhance governance practices
in for-purpose organisations.
Paul Harpur
Paul Harpur is a Senior Lecturer at the TC Beirne School of Law at the University of Queensland. He
has taught corporate law to students from the school of law and the school of accounting for an extended
period of time. His PhD concerned corporate social responsibility, and since then Paul has continued to
research on regulatory frameworks. In 2019, Paul was awarded a Fulbright Future Scholarship where he
will work and research at Harvard University and Syracuse University.
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PART 1
BUSINESS LAW
1 Business and the law 2
2 The Australian legal system 27
3 Deliberately causing harm 63
4 Carelessly causing harm 96
5 Contract law: formation of the contract 127
6 Contract law: terms of the contract 161
7 Contract law: enforcement of the contract 193
8 Contract law: working with agents 223
9 Dealing with consumers 250
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CHAPTER 1
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JOHNNY AND ASH
[Johnny Bristol, 25 years old, scruffy and morose, sits by himself in a nearly empty bar nursing a beer. He
looks up when a young woman calls his name as she approaches from the other side of the bar: Ashwina
Redcliffe, smartly dressed and immaculately groomed.]
Ash — Johnny! Hey, Johnny!
Johnny — Hey, Ash.
Ash — [She sits down at the table, carefully placing her glass of white wine on a coaster, and looks at Johnny.]
Johnny Bristol, well, well, well. I haven’t seen you since high school. It’s been, what, seven years? I heard you
moved to New Zealand.
Johnny — I did. I’m back. I heard you went to law school.
Ash — I did. And now I’m a lawyer. Working for Gibson & Gaiman in the city. Loving it. And doing quite well for
myself, thanks. So what brings you back to town?
Johnny — Well, my dad got sick last year, and so I came back to help mum look after him and to set up a
business back here. You know The Lame Duck restaurant? Vegan restaurant over on Kerouac Avenue? I own the
place now.
Ash — Oh, I’m so sorry to hear about your dad. He’s a nice man. A friend of mine ate at The Lame Duck just last
week. She had the tofu burger I think.
Johnny — Yeah? What did she say about it?
Ash — She said it was awful, actually. Sorry! [They both laugh.] Apparently the organic cola was wonderful,
though.
Johnny — That’s a relief. [He pauses.] Things really aren’t going that well. I’m having heaps of problems just
keeping the place running. I’m a good cook — well, I thought I was — but I’ve never run a business before. I’ve
got suppliers who don’t do what they say they are going to do, employees who show up late if they show up
at all, and a competitor who keeps stealing my recipes. My landlord wants to sell the building, and I don’t have
enough savings to move to another location.
Ash — Sounds like you need a friend to talk to. And a lawyer.
Johnny — Thanks. I definitely need a friend. A lawyer, I’m not so sure. What do my problems have to do with the
law?
Ash — Are you kidding? It’s all about the law! How can you possibly run a business without being aware of the
law? How can you play a game without knowing the rules? Here, let me get you another beer, and I’ll tell you a
thing or two about the law.
Johnny — Thanks, Ash, I guess you are right. I have always been more concerned with doing what is ‘right’ than
with doing what is ‘legal’. I don’t know much about the law at all. Maybe that’s the problem. And the tofu burger,
of course.
Ash — Of course! Actually, you might be surprised how much you already know about the law . . .
CHAPTER PROBLEM
As a business owner, Johnny is confronted by a number of challenges. As you make your way through this
chapter, consider the reasons why a better understanding of business law might be helpful for Johnny.
With which specific areas of the law should Johnny become more familiar? Is Johnny correct in thinking
that questions about ‘what is right’ and questions about ‘what is legal’ are unrelated?
Introduction
Ash is right. You can’t play a game without knowing and understanding the rules, and you can’t participate
in business — whether as a business owner, manager, professional adviser or employee — without knowing
and understanding the law. In this chapter we consider the law in a very general sense. We explain the
relevance of the law to business, what makes the law different from other types of rules and regulations,
why it is important that the law keeps changing, and what the law has to do with ethics, justice and
politics.
After working through this chapter, you will better appreciate the importance of the law and of being
aware of your legal environment.
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1.1 Law and the business person
LEARNING OBJECTIVE 1.1 Explain the ways in which the law relates to business.
Johnny may never have studied law or read a legal textbook, but there is little doubt that he already knows
something about the law. He has encountered the law many times: in his personal life, in his business
activities, in the media and in popular culture.
ACTIVITY — REFLECT
List five ways that the law has impacted on your own life in the past 24 hours.
ACTIVITY — REFLECT
List three reasons why an understanding of the law is essential for the successful business person.
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Law in the media
Johnny hears something new about the law every day. Many of the news stories Johnny sees on the
television and reads about online are about the law or at least related to the law in some way. The
government’s latest climate change reforms, the debate on marriage equality, the jailing of a prominent
politician, and the investigation of an assault outside a nightclub all involve the legal system. Johnny has
seen many examples of politicians talking about new legislation either positively (if the politicians are
members of the government) or negatively (if they are members of the opposition), police talking about
criminal prosecutions, and a variety of bureaucrats and other people talking about legal problems, legal
rules, legal investigations and legal solutions. He also hears and reads about lawyers and parties to litigation
talking about controversial judicial decisions and case law.
After watching the news and current affairs programs Johnny knows that many people and organisations
form a legal system: politicians, judges, lawyers, police, bureaucrats and citizens; and parliaments, courts,
the police force, government departments, small businesses and corporations.
ACTIVITY — REFLECT
Think back to recent media events that you have heard or read about, and list three examples of how the
law has impacted upon society in some way.
Watch an episode of a television program that is related to the law in some way. In what ways are the
law, the legal system or lawyers referred to, either directly or indirectly? Do you think the way the law is
portrayed is realistic?
.......................................................................................................................................................................................
REVISION QUESTIONS
Before proceeding, ensure that you can answer the following questions.
1.1 In what ways does the law impact upon your personal life?
1.2 In what ways does the law impact upon business activities?
1.3 What can the news and other media stories tell you about the law?
1.4 What can popular culture tell you about the law?
.......................................................................................................................................................................................
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Defining law
The question ‘What is the law?’ is much harder to answer than one might think. It is a question that legal
theorists and philosophers have been debating for hundreds of years, and there is relatively little consensus.
Here are just a few of the many possible definitions and descriptions of law.
• Law is a system of enforceable rules governing social relations and legislated by a political system.
(Stanford Encyclopaedia of Philosophy)
• Law is the essential foundation of stability and order both within societies and in international relations.
(J William Fulbright)
• Law: an ordinance of reason for the common good, made by him who has care of the community. (Saint
Thomas Aquinas)
• The law is but words and paper without the hands and swords of men. (James Harrington)
• Law and order exist for the purpose of establishing justice, and ... when they fail to do this purpose they
become dangerously structured dams that block the flow of social progress. (Martin Luther King, Jr)
• In its majestic equality, the law forbids rich and poor alike to sleep under bridges, beg in the streets and
steal loaves of bread. (Anatole France)
There is a distinction between ‘a law’ and ‘the law’: you would use the term ‘a law’ to refer to a particular
legal rule, and you would use the term ‘the law’ to refer to the legal system generally.
A simple and practical definition of the law is as follows: the law is a system of rules made by the state
and enforceable by prosecution or litigation. The corresponding definition of business law is a system
of rules regulating businesses and business activities made by the state and enforceable by prosecution
or litigation.
These definitions disregard questions of justice, ethics and politics, and focus upon what law is, without
considering whether it is fair or right and without considering the political origins and implications of law.
We consider the relationship between law, justice, ethics and politics in detail below. For now, we examine
each of the elements of our simple definition in turn.
A system of rules
Most people who attempt to define law will use the word ‘rule’ somewhere in their definition. A law is a
type of rule. A rule is a statement of behavioural expectation; it tells people how they should or should not
behave. There may or may not be negative consequences that flow from failing to comply with the rule.
There are of course many different types of rule, including:
• the rules of a game, e.g. the rules of poker or cricket,
• the rules of an organisation, e.g. the membership rules of a football association or the internal governance
rules of a corporation,
• moral rules, e.g. the rule that you should not tell lies,
• social rules, e.g. the rule that you should say ‘please’ when asking for something,
• mathematical rules, e.g. the rules regulating multiplication and division, and
• traffic rules, e.g. the rule that you should drive on the left-hand side of the road.
Not all of these rules are laws. Traffic rules can be categorised as laws, but the rules determining how
a cricket match is to be played cannot. So what, then, is the major difference between legal rules (i.e.
laws) and non-legal rules? How do we distinguish one from the other? Is the answer that legal rules incur
penalties and non-legal rules do not? While it is correct to say that legal rules incur penalties, there are
also penalties incurred if you breach the rules of a game or of an organisation, and even the disapproval
that follows from a breach of a social or moral rule can be seen as a type of penalty.
The most appropriate way to distinguish between a legal rule and a non-legal rule is to consider the
source of the rule.
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Exploring the Variety of Random
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doctrine, and fills up the greater part of the epistle with reproofs of
these errors.
“‘Silver shrines,’ verse 24. The heathens used to carry the images of their gods in
procession from one city to another. This was done in a chariot which was solemnly
consecrated for that employment, and by the Romans styled Thensa, that is, the chariot of
their gods. But besides this, it was placed in a box or shrine, called Ferculum. Accordingly,
when the Romans conferred divine honors on their great men, alive or dead, they had the
Circen games, and in them the Thensa and Ferculum, the chariot and the shrine, bestowed
on them; as it is related of Julius Caesar. This Ferculum among the Romans did not differ
much from the Graecian Ναὸς, a little chapel, representing the form of a temple, with an
image in it, which, being set upon an altar, or any other solemn place, having the doors
opened, the image was seen by the spectators either in a standing or sitting posture. An old
anonymous scholiast upon Aristotle’s Rhetoric, lib. i. c. 15, has these words: Ναοποιοὶ οἱ
τοὺς ναοὺς ποιοῦσι, ἤτοι εἱκονοστάσια, τινα μικρὰ ξύλινα ἅ πωλοῦσι, observing the ναοι here to
be εικονοστάσια, chaplets, with images in them, of wood, or metal, (as here of silver,) which
they made and sold, as in verse 25, they are supposed to do. Athenaeus speaks of the
καδισκος, ‘which,’ says he ‘is a vessel wherein they place their images of Jupiter.’ The
learned Casaubon states, that ‘these images were put in cases, which were made like
chapels. (Deipnos. lib. ii. p. 500.) So St. Chrysostom likens them to ‘little cases, or shrines.’
Dion says of the Roman ensign, that it was a little temple, and in it a golden eagle, (Ρωμαικ,
lib. 40.) And in another place: ‘There was a little chapel of Juno, set upon a table.’ Ρωμαικ,
lib. 39. This is the meaning of the tabernacle of Moloch, Acts vii. 43, where by the σκηνη,
tabernacle, is meant the chaplet, a shrine of that false god. The same was also the סכות דנות
the tabernacle of Benoth, or Venus.” Hammond’s Annotations. [Williams on Pearson, p. 55.]
“Chapter xvi. 10, 11. ‘Now, if Timotheus come, see that he may be with you without fear;
for he worketh the work of the Lord, as I also do: let no man therefore despise him, but
conduct him forth in peace, that he may come unto me, for I look for him with the brethren.’
“From the passage considered in the preceding number, it appears that Timothy was
sent to Corinth, either with the epistle, or before it: ‘for this cause have I sent unto you
Timotheus.’ From the passage now quoted, we infer that Timothy was not sent with the
epistle; for had he been the bearer of the letter, or accompanied it, would St. Paul in that
letter have said, ‘if Timothy come?’ Nor is the sequel consistent with the supposition of his
carrying the letter; for if Timothy was with the apostle when he wrote the letter, could he say,
as he does, ‘I look for him with the brethren?’ I conclude, therefore, that Timothy had left St.
Paul to proceed upon his journey before the letter was written. Further, the passage before
us seems to imply, that Timothy was not expected by St. Paul to arrive at Corinth, till after
they had received the letter. He gives them directions in the letter how to treat him when he
should arrive: ‘if he come,’ act towards him so and so. Lastly, the whole form of expression
is more naturally applicable to the supposition of Timothy’s coming to Corinth, not directly
from St. Paul, but from some other quarter; and that his instructions had been, when he
should reach Corinth, to return. Now, how stands this matter in the history? Turn to the
nineteenth chapter and twenty-first verse of the Acts, and you will find that Timothy did not,
when sent from Ephesus, where he left St. Paul, and where the present epistle was written,
proceed by a straight course to Corinth, but that he went round through Macedonia. This
clears up everything; for, although Timothy was sent forth upon his journey before the letter
was written, yet he might not reach Corinth till after the letter arrived there; and he would
come to Corinth, when he did come, not directly from St. Paul, at Ephesus, but from some
part of Macedonia. Here therefore is a circumstantial and critical agreement, and
unquestionably without design; for neither of the two passages in the epistle mentions
Timothy’s journey into Macedonia at all, though nothing but a circuit of that kind can explain
and reconcile the expressions which the writer uses.” (Paley’s Horae Paulinae, 1
Corinthians No. IV.)
“Chapter v. 7, 8. ‘For even Christ, our passover, is sacrificed for us; therefore let us keep
the feast, not with old leaven, neither with the leaven of malice and wickedness, but with the
unleavened bread of sincerity and truth.’
“Dr. Benson tells us, that from this passage, compared with chapter xvi. 8, it has been
conjectured that this epistle was written about the time of the Jewish passover; and to me
the conjecture appears to be very well founded. The passage to which Dr. Benson refers us,
is this: ‘I will tarry at Ephesus until Pentecost.’ With this passage he ought to have joined
another in the same context: ‘And it may be that I will abide, yea, and winter with you:’ for,
from the two passages laid together, it follows that the epistle was written before Pentecost,
yet after winter; which necessarily determines the date to the part of the year, within which
the passover falls. It was written before Pentecost, because he says, ‘I will tarry at Ephesus
until Pentecost.’ It was written after winter, because he tells them, ‘It may be that I may
abide, yea, and winter with you.’ The winter which the apostle purposed to pass at Corinth,
was undoubtedly the winter next ensuing to the date of the epistle; yet it was a winter
subsequent to the ensuing Pentecost, because he did not intend to set forwards upon his
journey till after the feast. The words, ‘let us keep the feast, not with old leaven, neither with
the leaven of malice and wickedness, but with the unleavened bread of sincerity and truth,’
look very much like words suggested by the season; at least they have, upon that
supposition, a force and significancy which do not belong to them upon any other; and it is
not a little remarkable, that the hints casually dropped in the epistle, concerning particular
parts of the year, should coincide with this supposition.” (Paley’s Horae Paulinae. 1
Corinthians. No. XII.)
“Chapter ii. 12, 13. ‘When I came to Troas to preach Christ’s gospel, and a door was
opened unto me of the Lord, I had no rest in my spirit, because I found not Titus my brother;
but taking my leave of them, I went from thence into Macedonia.’
“To establish a conformity between this passage and the history, nothing more is
necessary to be presumed, than that St. Paul proceeded from Ephesus to Macedonia, upon
the same course by which he came back from Macedonia to Ephesus, or rather to Miletus
in the neighborhood of Ephesus; in other words, that, in his journey to the peninsula of
Greece, he went and returned the same way. St. Paul is now in Macedonia, where he had
lately arrived from Ephesus. Our quotation imports that in his journey he had stopped at
Troas. Of this, the history says nothing, leaving us only the short account, ‘that Paul
departed from Ephesus, for to go into Macedonia.’ But the history says, that in his return
from Macedonia to Ephesus, ‘Paul sailed from Philippi to Troas; and that, when the disciples
came together on the first day of the week, to break bread, Paul preached unto them all
night; that from Troas he went by land to Assos; from Assos, taking ship and coasting along
the front of Asia Minor, he came by Mitylene to Miletus.’ Which account proves, first, that
Troas lay in the way by which St. Paul passed between Ephesus and Macedonia; secondly,
that he had disciples there. In one journey between these two places, the epistle, and in
another journey between the same places, the history makes him stop at this city. Of the
first journey he is made to say, ‘that a door was in that city opened unto him of the Lord;’ in
the second, we find disciples there collected around him, and the apostle exercising his
ministry, with, what was even in him, more than ordinary zeal and labor. The epistle,
therefore, is in this instance confirmed, if not by the terms, at least by the probability of the
history; a species of confirmation by no means to be despised, because, as far as it
reaches, it is evidently uncontrived.
“Grotius, I know, refers the arrival at Troas, to which the epistle alludes, to a different
period, but I think very improbably; for nothing appears to me more certain, than that the
meeting with Titus, which St. Paul expected at Troas, was the same meeting which took
place in Macedonia, viz. upon Titus’s coming out of Greece. In the quotation before us, he
tells the Corinthians, ‘When I came to Troas, I had no rest in my spirit, because I found not
Titus, my brother; but, taking my leave of them, I went from thence into Macedonia.’ Then in
the seventh chapter he writes, ‘When we were come into Macedonia, our flesh had no rest,
but we were troubled on every side; without were fightings, within were fears; nevertheless,
God, that comforteth them that are cast down, comforted us by the coming of Titus.’ These
two passages plainly relate to the same journey of Titus, in meeting with whom St. Paul had
been disappointed at Troas, and rejoiced in Macedonia. And amongst other reasons which
fix the former passage to the coming of Titus out of Greece, is the consideration, that it was
nothing to the Corinthians that St. Paul did not meet with Titus at Troas, were it not that he
was to bring intelligence from Corinth. The mention of the disappointment in this place,
upon any other supposition, is irrelative.” (Paley’s Horae Paulinae. 2 Corinthians No. VIII.)
return to asia.