Business Law : Page - 20

Question 1Whether Steve can be held personally liable to pay off the debts of WA Gold Exploration Ltd? Whether directors can be held liable for failing to identify the potential of gold exploration opportunity? A corporation has a separate legal personality based on which its shareholders and directors cannot be held personally liable to pay off its debts. The companies in Australia are governed by the Corporations Act 2001 (Cth) ...

Separate legal entity The recognition that a corporation is a separate legal entity in its own right is the foundation of modern corporate law is a statement which has two aspects, firstly, as how the corporation was considered as a separate legal entity in law and secondly, how the said principle is regarded as the foundation of the modern corporate law. The firstly question requires an analysis of the leading case law of Salomon v A Salomon A...

The Policy of Reserve Price in the Australian Wool Industry Free market refers to a market scenario that operates independently with the help of autonomous demand and supply. Depending on supply and demand situation price and quantity are determined in the market. The equilibrium price works as an invisible hand to adjust and reinstate equilibrium position. Government however often intervenes in the market with the objective of increasing welfar...

The concept of Veil of incorporation in Australian Law In the given situation the issue is whether the daughter of Bob has provided him a better idea to form an organisation under the rules of common Law. The court has stated in the given case Salomon v Salomon & Co [1897] AC 225 that the registered organisation is said to be the artificial legal person that states the identity of the company is not exactly similar as the identity of their ...

Incorporation of a Company and Distinction between officers and the company Whether Bob by doubling his catch with the help of company incorporation has violated any legal provisions? If any person intends to establish a business, then, one of the forms is the formation of a company. Section 124 of the Corporation Act 2001 submits that when a company is incorporated, then, it is an artificial being and is regarded as an artificial person. This ...

Facts of the Case The ASIC v Australian Property Custodian Holdings Limited (No 3) [2013] FCA 1342 (hereinafter referred as the case) is a recent case in which the importance of director duties was highlighted by the court. The judgement of this case is a good lesson for directors of responsible entities (REs) operating in Australia. The directors of a responsible entity have to ensure that they use their powers for adequate purposes and av...

Artificial Legal EntityThere are various features which a company gets when it has been registered or incorporated. A company is a form of business structure which is selected for the purpose of carrying out business activities. The attributes which a company gets after being incorporated are as follows: Separate legal entity Through the term spate legal entity a company becomes an artificial legal person. This means that it has its own ...

Overview of Director's DutiesThe central issue is to offer Tim legal advice in the capacity of legal advisor for Modern Design Pty Ltd in relation to the issues that the company is facing regarding potential breach of duty by directors with reference to both common law and Corporations Act 2001 (Cth). The directors occupy a significant position in the company and play a vital role in the success of the company. Considering the importance of...

Forensic Techniques used in Hien Puoc Tang CaseThe case of Hien Puoc involved an armed robbery incidence dated on 14th March 2003. The robbery took place in a convenience store, and the incidence that took place was captured by an installed surveillance device that videotaped all that occurred. Tang was convicted of the crime since there was lack of enough evidence to confirm that he did commit the said crime. Though there was the tape re...

Permanent Establishment and its Taxation Implied in International and Domestic Tax Answer to A:  Permanent establishment is referred as the concept that is implied both in the international as well as domestic tax. The concept of permanent establishment was first used in Australia as the tax treaty with UK that was singed during the year 1946. With reference to “subsection 6 (1) of the ITAA 1936” Permanent establishment re...

Gifts and their taxation treatment Answer to question 1: The Australian taxation office defines that an individual might receive amounts that are not subjected to tax. Therefore, the amount from gift are not included as the part of the taxable income. According to Australian taxation office a gift that is a mere gift does not possess the character of income. As evident in the current situation of Susan received a redeemable gift voucher of $300...

Analysis of Operating, Investing, and Financing Cash FlowsThe report intends to state on the various types of finding based on cash flow assessment of “Telstra corporations Ltd.” Some of the main assessment of the study has included a comparative analysis of three important aspects of cash flows specifically stated with operating, investing and financing events. It is also discussed on the various changes over the past three years ...

Cash Flow StatementThe company selected for this task is JB HI-FI. The latest annual report corresponding to the company available in the public domain corresponds to June 30, 2017. The other relevant aspects related to cash flow statement, other comprehensive income and tax flow are discussed below (JB HI-FI, 2017). The cash flow from operations for the company is represented through the screenshot below. A brief description of the ab...

County Court of Victoria VisitOn 15th may 2018 I visited the county Court of Victoria. The court is located at to 50 William Street Melbourne Victoria 3000 Australia. The court opens at 9 A.M and anyone who wants to witness that case in this phone has to be present their sharp by 9:30 A.M. I got this information about the court from the official website of the county Court of Victoria. There were various security checks entrance of the court w...

Cash Flow from Operating ActivitiesThe following discussion shows the details about the recorded items by Cromwell Property Group in their 2017 Consolidated Statement of Cash Flows: Cash Flow from Operating Activities: Cromwell Property Group has reported some specific items under the operating activities. They are payment and receipts from the course of business operations, distribution received, interest received, finance cost payment ...

Roles of VisualizationData in its raw form is often incomprehensible, for instance, it is impossible to identify a trend among a number of variables in a given data-set from mere observation of the data. Equally, for anyone to be able to draw any meaningful inferences from data, more advanced measures have to be taken considerably, such measures mostly involve: data analysis, data visualization, etcetera. Bista (2018) differentiates data visua...

Background of the StudyThis section of the research paper deals with the background of the study so that a clear idea of the research area is received. The discussion of the problems and the purpose of the study will follow the background from which the research objectives and the research hypothesis will be framed. The hotel industry in UAE has shown a significant growth in the past few years. There has been significant growth in the inven...

Circumstances under which duty of directors can be breachedASIC v Vizard [2005] provides a good example of the case it was illustrated by the court that what are the circumstances where it can be stated that there has been a breach of the duty of the directors according to which we should not improperly use information received by them in their capacity as the director of the corporation. The decision in Vizard’s case acts as a reminder ...

Taxable Income from Personal ExertionWith the changes in complex business structure, each and every organization needs to use the strategic tax planning process to mitigate the business risks. There are several concepts are discussed such as tax computation, computation of the car fringe benefit, assessment of income and tax computation in different circumstances. There are several tax concepts which have been analyzed with a view to assess t...

Introduction to Rivkin's caseRivkin's case received a lot of attention from the media at the time of trial and later on during appeal. As a result, the universal type of the facts is known extensively. In this case, Mr. Rivkin wanted to sell his residence in the Sydney suburbs. For this purpose he had appointed real estate agent, Mr. Doff. On the other hand, Mr. Gerard McGowan was willing to buy the home. Mcgowan was also acting as the executi...

Definition of a Director under Section 9The key issue of this case revolves around the possible breach of director duties’ covered under section 180(1) of the Corporations Act, by the directors of the company, and the possible defence available under 180(2) of the Corporations Act. Corporations Act, 2001 is the legislation which has to be followed by all the companies working in Australia, unless otherwise exempted. This legislat...

Definition of Director under Section 9 of the Corporation Act 2001 The issue is that whether the directors have breached their duties. From the very beginning, the provisions of Section 9 of the Corporation Act 2001 deal with the definition of a director. According to the provisions of Section 9 of the Corporation Act 2001, a person may not be appointed as the formal director of a company, if the nature of the duty of the director is such ...

Duties of Directors under Section 180(1) of the Corporation Act Whether the director of Fruut Pty. Ltd  (Fruut) have violated section 180 (1) of the Corporation Act 2001. Whether section 180 (2) have any effect in the given situation? The Corporation Act 2001 is the legislation that deals with the working of a company, its officers and employees. The House of Lords has established in (Salomon v A Salomon & Co Ltd, 1896), th...

In the given scenario the issues that have identified are enumerated below: Whether the restraint of Trade clause incorporated in the contract would have any effect What impacts will the representations that had been made to Hardy prior to the sale have What remedies are available to Laurel in relation to the facts of the scenario It can be stated that employers are often worried about protecting the interests of their after their ...

Issue 1 Whether the oral assurance which has been provided by kalpana is a term or a mere representation in relation to the contract with Rafia In order to decide the issue that a statement is to be considered as a representation or a term of the contract the courts take into consideration a few factors including the parole evidence rule, the time between the statement and contract formation, relative expertise of the parties and importanc...