$20 Bonus + 25% OFF
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
Add File

Error goes here

BLO5540 Business And Company Law

tag 0 Download11 Pages / 2,604 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT


1. Food Works Ltd is in the groceries retailing business. It has a board of three directors, Dion and Larry (both executive directors) and Peter (the non-executive director). Only Dion and Larry are shareholders in the company (holding 10% of the shares each) while the remaining shares are held by Raldi Pty Ltd (which holds 80%). Vance, a former founder of the company has stepped down from his previous role as Chief Executive Officer and has taken on the role of ‘Consultant’ and is now a sounding board for the other director (due to his extensive experience in the industry).

In December of 2017, while on a work trip in Europe sourcing business opportunities for Food Works Ltd, Dion met Randy, the CEO of Organica Ltd, a company specialising in the production of organically made food products. Upon further meetings with Randy, Dion discovered that the sales of organic food products in Australia was a very lucrative business opportunity. Dion decided against informing the Board of Food Works Ltd as he believed that some of the Board members would not be interested in sourcing organic food products from Europe due to higher sourcing costs.  Dion had a separate health foods business, Lifestyle Today Ltd, in which he presided as single director and single shareholder and entered into a contract with Organica Ltd to source various organic products. Profits at Lifestyle Today Pty Ltd soared due to greater awareness of healthy eating amongst the younger generation while Food Works Ltd was struggling to stay competitive.

While attending a conference, Peter met Randy and has since discovered that Dion had failed to disclose about the organic food products supply contract to the Board of Food Works Ltd. Peter informs Larry and Vance about this issue who had no knowledge and were surprised to hear about this.

At a recent board meeting, the Board has become aware that Raldi Pty Ltd had launched a takeover bid. Vance has recommended to the Board that they should issue further shares to Dion and Larry. The result of this, is that the shareholding of Raldi Pty Ltd would be diluted, hence blocking the takeover. There was no urgent need at the time for Food Works Ltd to raise capital.

Further, at the same board meeting, Vance recommended that in a desperate attempt to improve profitability of its existing brands, Food Works Ltd should spend an additional $100,000 on media advertising and marketing. Due to his extensive industry experience, Dion and Larry concurred with this strategy. Peter, however, reviewed the cash flow statement and after discussions with Rita, the accountant highlighted to the others that the company was already having some cash flow problems (being on the brink of insolvency) and that investing in further advertising and marketing was not a good idea. Dion, Larry and Vance who are very optimistic, argue for the advertising to continue as in their view the company was not yet ‘insolvent’.  A resolution is passed that the company should continue its aggressive advertising and marketing efforts for another year. After a few months, the company’s capital has run dry.


(a)Advise whether any of the persons mentioned above have breached the directors’ duties regime in the Corporations Act 2001(Cth). Please refer to relevant case law authorities in support of your discussion.

(b)Advise if any defences are available to any of the above persons in the circumstances.

(c)Advise what penalties (under the Corporations Act 2001 (Cth)) and common law remedies are available if a breach of directors’ duties is found.

2. Carpets Galore Pty Ltd, is a family-owned importer and retailer of luxury carpets. There are four directors (all siblings): Caitlin, Ben, Sarah and David. Ben and David, hold 80% of the shares between them with Caitlin and Sarah each holding 10% of the shares.

Over the past couple of months, Caitlin and Sarah have found the other directors to not be receptive to their views on any major decisions. Caitlin and Sarah want the family business to diversify into sales of designer rugs as well but the others resisted the idea of diversification as it was not part of the business plan and it diverted resources away from the carpet business. Caitlin and Sarah have since learnt that Ben and David have held some board meetings which they did not inform them of, where important business decisions were made.

These decisions at the aforementioned meetings included the following:

  1. The approval of pay rises for Ben and David  (but not for Caitlin and Sarah)
  2. Despite the company’s increased profits, the decision not to declare a dividend yet again (the company having not declared dividends in the prior 2 years despite being profitable).
  3. The ratification of the sale of four of the retail outlets belonging to Carpets Galore Pty Ltd to Household Mania Pty Ltd, a company at which Ben is founder and director at. No independent valuations of the retail outlets had been obtained and the sale price was considerably less than the market price.

Differences of opinion have become rather acute such that the relationship between Caitlin and Sarah and the other two brothers is now quite acrimonious. Key decisions about management of the business are difficult to achieve.

Advise Caitlin and Sarah whether any member remedies are available under the Corporations Act 2001(Cth). Please refer to relevant case authorities in support of your discussion.

Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

Unique Document

Under Evaluation

Get Money
into Your Wallet

Total 11 pages, 1 USD Per Page

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help (2021) Business And Company Law [Online]. Available from: https://myassignmenthelp.com/free-samples/blo5540-business-and-company-law/the-duties-of-directors-corporations-act-2001.html
[Accessed 18 April 2021].

My Assignment Help. 'Business And Company Law' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/blo5540-business-and-company-law/the-duties-of-directors-corporations-act-2001.html> accessed 18 April 2021.

My Assignment Help. Business And Company Law [Internet]. My Assignment Help. 2021 [cited 18 April 2021]. Available from: https://myassignmenthelp.com/free-samples/blo5540-business-and-company-law/the-duties-of-directors-corporations-act-2001.html.

Looking for reliable Assignment Help Melbourne? Get it from supremely qualified in-house experts of MyAssignmenthelp.com at the highest discount rates. Order last minute and get complete and 100% plagiarism-free assignment that suit your budget and quality parameters. You can talk to us anytime around the clock. Moreover, we take care of every aspect of security and confidentiality. Our payment channels and chat support are encrypted, reliable, and bug-free. Check our reviews to know more about us.

Latest Business Law Samples

M30G12 International Law

Download : 0 | Pages : 10

Answer Introduction This essay focuses on the legality and consequences of the actions of Ufasia and Federal States under ‘use of force’ ‘state responsibility’ and ‘reparation’ rules in international law. It is considered that to understand the legality and consequences of the actions of Ufasia and Federal States we will understand some elements of international law to better understand the scenario between...

Read More arrow

BUSN7045 Corporate Governance

Download : 0 | Pages : 2

Answer Essential criteria for a non-executive director to be appointed to the company’s board The appointment of the non-executive directors involves the fulfillment of certain essential criteria. It needs to be made sure that the board must have members who are skillful and meets the quality that is required from board members to meet their fundamental duty of promoting the growth and development of the company. One of their primary re...

Read More arrow

LAWS12061 Administrative Law

Download : 0 | Pages : 6

Answers: Introduction The facts of this case relate to powers of an administrative body to make certain decisions. In answering questions one and two, I’ll consider the circumstances when judicial review is available to a party and any limitations as well as merits of judicial review to a person in such circumstances. 1.Issue Is judicial review available to Gemma? What are the limitations of judicial review in the circumstances of thi...

Read More arrow

BUSI 2301 Business Law

Download : 0 | Pages : 7

Answer:  Issue Whether Wanda can sue her parents for the enforcement of the promise to buy new clothes in exchange of high distinction in unit exams? Law To establish a contract there are few contractual elements that must be made part of the contract which includes an agreement (offer and acceptance), consideration, legal capacity and legal intention. The combination of all the elements results in a valid legal enforceable contract amid...

Read More arrow

BL1100 Business Law

Download : 0 | Pages : 5

Answers: 1. STEP 1 The issue in the given case study is to analyse the meaning of puffs, opinions and the terms in the contract given in the case study. In addition, it should be examined the enforceability of the contract in light of the parole evidence rule. STEP 2 According to the Contract Law, while negotiating the terms of the contract, various kinds of statements are made by the parties. Accordingly, a puff refers to a statement includi...

Read More arrow

Save Time & improve Grade

Just share requirement and get customized Solution.

We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

Add File

Error goes here




Overall Rating



Our Amazing Features


On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.


Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.


24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat. If you are unable to calculate word count online, ask our customer executives.


Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.


Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

234 Order Completed

100% Response Time

Samantha Ji

PhD in Chemistry with Specialization in Organic

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1758 Order Completed

99% Response Time

William Martinez

MS in Biology

Washington, United States

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2109 Order Completed

99% Response Time

Emma Zhong

Ph.D in Project Management with Specialization in Project Communications Management

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

416 Order Completed

95% Response Time

Tyler Moore

MBA in Accounting

Washington, United States

Hire Me

FREE Tools


Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.


Essay Typer

Get different kinds of essays typed in minutes with clicks.


GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.


Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.


Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability




Your Approx Earning

Live Review

Our Mission Client Satisfaction

I got a very high mark and I am satisfied with the service provided this time. Thank you!


User Id: 546862 - 18 Apr 2021


student rating student rating student rating student rating student rating

It was great. The paper got the details and the information I needed. It was good effort.


User Id: 457776 - 18 Apr 2021


student rating student rating student rating student rating student rating

It was good. The assignment provided good details and I got the information I needed.


User Id: 457776 - 18 Apr 2021


student rating student rating student rating student rating student rating

GOOD! The tutor is professional, responsible and patient. The reply was timely...................


User Id: 604370 - 18 Apr 2021


student rating student rating student rating student rating student rating

Order on the go!

Say hello to our new app

callback request mobile
Have any Query?