New

Learn smart - Learn online. Upto 80% off on courses for a limited time. View Courses

Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
loader
Add File

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Guaranteed Higher Grade!

Stuck on Your Question?

Get 24x7 live help from our Top Tutors. All subjects covered.

loader
250 words

Error goes here

Files Missing!

Please upload all relevant files for quick & complete assistance.

Students Who Viewed This Also Studied

13 Pages
Management

Current issues facing Australian companies, directors and boards –specific           details will be available in class and via Model by Week 6 &nbs ...

Type

Thesis

Subject

19 Pages
Management

Question 1 (10 marks) Lease Erika Ltd runs a successful chain of sushi restaurants, but has been experiencing significant cash flow problems. The directors are examining a proposal made by an accoun ...

Type

Assignment

Subject

10 Pages
Management

Create a new blank Access 2007/2010/2013 Database and name it [lastname] [initial] _ [student number] _ [course code] _ assign1.accdb (eg. genrichr_0050051005_cis5100_assign1.accdb).  Import the ...

Type

Programming

Subject

3 Pages
Management

This is a structured report which you will prepare and write. The template is available to below and  highly recommended that you do this within the structure given. You will need Microsoft Word ...

Type

Thesis

Subject

ACC204 Company Law

Question

Answered

Question 1:

Leela is the Managing Director of ‘Weight Shedders Pty Ltd’ (hereafter ‘Weight Shedders’), a profitable company specialising in providing weight loss and dieting advice to customers with weight problems. Her company prepares light-meals for her clients using meat and vegetables sourced from local supermarkets.

While at an international food conference one day, Leela meets a fellow entrepreneur, Mark who runs an ‘Organic Meat and Groceries’ business called ‘Organic Goodness Pty Ltd’. Mark asks Leela if her company would be interested in purchasing organic products for use in preparing ‘light-meals’.

Leela informs Mark as follows: “I think Weight Shedders , at this stage, would not be interested in this business proposal because I believe it would want to maintain its current working relationships with its meat and vegetable suppliers”. However, Leela herself was interested in taking up this opportunity and to this effect, she and Mark set up a company called ‘Organic Wonders Pty Ltd’ and became its directors and shareholders. The business was initially successful but ended up being sued by the ACCC for making misleading statements about its products being a 100% organic.

Eight months later, at a board meeting of Weight Shedders, Leela proposes that Weight Shedders should enter into a long term contract with Organic Wonders to purchase ingredients for use in the light meals. The rest of the board (John and Michael, the executive directors and Paul, the non-executive director) are immediately agreeable (without conducting any further investigations of their own) as they trust Leela’s business judgment, as she has been a director with Weight Shedders for the past 6 years. Leela managed to negotiate a small commission on each sale.The board is unaware that Leela is a director and a 50% shareholder of Organic Wonders. The contract with Organic Wonders has caused it to suffer financial losses (as their customers soon became aware that ingredients for their light meals were being sourced from Organic Wonders).

(a)Discuss whether Leela, John, Michael and Paul have breached their directors’ duties

 

and what penalties/remedies can be obtained against them.

(b)Are any defences available to them if they have breached the duties.

Please use relevant cases and legislation in your answer.

(15 marks) (5 marks)

Question 2:

ACC204 Company Law Semester 1, 2015 GROUP ASSIGNMENT

Weight Shedders is currently the subject of a hostile takeover from Anglo-Chino Ltd (hereafter ‘Anglo-Chino’). Before Anglo-Chino’s takeover announcement, the market capitalisation of Weight Shedders is $1 million and its pre-takeover share price is $0.50. Anglo-Chino has offered $1 a share for Weight Shedders. At a board meeting, John, Michael and Paul, the current directors of Weight Shedders, decided that John should be provided with an interest-fee loan of $500,000 so that he would use the loan to purchase shares in Weight Shedders to push up the current share price. The net effect of this is that Anglo-Chino would have to offer more to the shareholders of Weight shedders to takeover the company.

 

Discuss whether John, Michael and Paul have breached their directors’ duties. Please use relevant cases and legislation in your answer.

ACC204 Company Law

Answer in Detail

Solved by qualified expert

Get Access to This Answer

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

34 More Pages to Come in This Document. Get access to the complete answer.

MyAssignmenthelp.com is a reliable college essay writing service provider that students can trust to overcome their academic problems. With a team of most efficient and hardworking assignment writers, we are capable of providing fast essay writing services in more than 100 subjects. Students, who decide to take urgent essay help from us, are guaranteed to receive completed essay assignments within any short time limit. Some of our popular essay help services include application essay help, argumentative essay paper help, literature essay assistance, etc.

More ACC204 Company Law : Questions & Answers

Q

Management

Current issues facing Australian companies, directors and boards –specific           details will be available in class and via Model by Week 6   Task Details:               ...

View Answer
Q

Management

Question 1 (10 marks) Lease Erika Ltd runs a successful chain of sushi restaurants, but has been experiencing significant cash flow problems. The directors are examining a proposal made by an accounting consultant that all the shop premises currently owned by the company be sold and either leased ...

View Answer
Q

Management

Create a new blank Access 2007/2010/2013 Database and name it [lastname] [initial] _ [student number] _ [course code] _ assign1.accdb (eg. genrichr_0050051005_cis5100_assign1.accdb).  Import the four sets of data from your firm’s Intranet (CIS5100 Study Desk).     The easiest ...

View Answer
Q

Management

This is a structured report which you will prepare and write. The template is available to below and  highly recommended that you do this within the structure given. You will need Microsoft Word to read the doc template. Submit in the same format. Do not PDF. It must be submitted electronically ...

View Answer

Content Removal Request

If you are the original writer of this content and no longer wish to have your work published on Myassignmenthelp.com then please raise the content removal request.

Choose Our Best Expert to Help You

5% Cashback

On APP - grab it while it lasts!

Download app now (or) Scan the QR code

*Offer eligible for first 3 orders ordered through app!

screener
ribbon
callback request mobile
Have any Query?