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BAA215 Business And Corporate Law

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  • Course Code: BAA215
  • University: University Of Tasmania
  • Country: Australia

Questions:

1.What type of business structure would you suggest that Scarlett and Essence consider and why?

2.Assumethe company now has four directors –Essence, Scarlett, Marigold and Daisy. Neither Daisy norMarigold work in the bakery/cafe but each have contributed money to enable the bakery/cafe to expand and Marigold does the business’s bookkeeping. All shares in the company are owned by the four directors in the following proportions:

i.Scarlett –50 shares

ii.Essence –30 shares

iii.Marigold –10 shares

iv.Daisy –10 shares

The four shareholders have a disagreement when Marigold says she should be paid for undertaking the bookkeeping work. Scarlett calls a meeting and proposes that they other three shareholders pass a resolution removing Marigoldas bothdirector and shareholder. Marigoldpaid $20 000 for her shares but Scarlett believes the business has not increased in value so she proposes that Marigoldnot be repaid anyof thefunds she paid to acquire her shares.

Provide some advice to Essence of the likelihood of such a resolutionas proposed by Scarlett beingsuccessfuland if Marigoldmight have any rights to contest sucha resolution should it be passed by the company?

3.A customer –John becomes ill when he eats a chicken pie made in the bakery/cafe. On the day when John eats in the bakery/cafe neither Essence norScarlett where working. They had left the new apprentice,Azalea in charge. She had not prepared the chicken correctly, leaving it out of the fridge for too long. She also did not cook the pie for the required cooking time
 
Advice Essence if the company or Azalea is liable for any compensation that John might claim as a result of his illness and the time had to take off from work to recover from the food poisoning?
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