A. Queensland Nickel Pty Ltd is a company which has gained notoriety and raised issues pertaining to: director’s duties; corporate insolvency; and employee entitlements. Throughout this subject, we examine the present status of this company and its corporate insolvency. Your task, in this part of the assignment topic, is to trace the origins of the company ie what type of company was it established as eg Ltd or Pty Ltd & why was the group that it is part of structured in the way that it is (ie holding & subsidiary companies etc)? What ramifications did the type of company have for the level of regulation it was required to meet? Other types of corporate entity in the mining sector include NL companies. What is an NL company? What type of regulation is an NL company required to meet and why is it used?
B. Two types of “business organisations” that we do not study in depth in this subject, but nonetheless are important for regional Queensland especially, are sole traders and co-operatives. What are the laws governing each of these? When might they be used? What are particularly significant legal issues for sole traders and co-operatives to navigate? Throughout your answer, cite examples of each business organisation in your local economy.
C. READ the recent article by Professor Ian Ramsay & Associate Professor Rosemary Langford “Removal of Directors of Public Companies by Shareholders: When do companies contract out of the Corporations Act?” (2019) 37 Company and Securities Law Journal 54-57. What are the difficulties in removing a director which the professors are discussing? What are the work arrangements of directors eg do they have a contract or is their term in office governed by the corporate constitution? How is the remuneration of directors determined? )
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