Based on this experience, Mary, Fred and Chris want to manage their risks much better, in particular limit their liability. They are also in need of some cash and want to raise it by selling shares to families and friends.
a) What type of business should Mary, Fred and Chris operate now? Again, support your answer by citing relevant cases and statutes.
Unfortunately, the trouble for the business does not end there. Chris, Mary and Fred changed business form and are now all directors of the business.
Chris is upset for being blamed for the incident with the customer and wants to make it up to Mary and Chris. He finds out that the neighbouring shop is available for sale for $120,000 – a prize that he considers a bargain. Chris decides to take out a loan for $150,000 in order to buy the shop and have some spare money for renovation.
The constitution/ replaceable rules of the business state that a director has power to manage the ordinary affairs of the company, however any contract for goods and services (including a loan) exceeding $100,000 must be signed by a director and another person authorised by the board for that purpose.
Chris did not discuss this with any of his colleagues before signing the contract.
b) Is the business bound by the loan contract under the Corporations Act 2001 (Cth)?
c) Has Chris breached any duties as director under the Corporations Act 2001 (Cth) by taking up the loan?
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2021). Company And Commercial Law. Retrieved from https://myassignmenthelp.com/free-samples/lst5ccl-company-and-commercial-law/business-structure-of-a-corporate-sector.html.
"Company And Commercial Law." My Assignment Help, 2021, https://myassignmenthelp.com/free-samples/lst5ccl-company-and-commercial-law/business-structure-of-a-corporate-sector.html.
My Assignment Help (2021) Company And Commercial Law [Online]. Available from: https://myassignmenthelp.com/free-samples/lst5ccl-company-and-commercial-law/business-structure-of-a-corporate-sector.html
[Accessed 28 October 2021].
My Assignment Help. 'Company And Commercial Law' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/lst5ccl-company-and-commercial-law/business-structure-of-a-corporate-sector.html> accessed 28 October 2021.
My Assignment Help. Company And Commercial Law [Internet]. My Assignment Help. 2021 [cited 28 October 2021]. Available from: https://myassignmenthelp.com/free-samples/lst5ccl-company-and-commercial-law/business-structure-of-a-corporate-sector.html.
Obtain plagiarism-free assignment whenever you opt for our assignment help service in Aus. We have a strict zero-plagiarism policy that our expert writers steadfastly follow when they work on your academic papers. They will find the most pertinent resources for your task and cite them appropriately. They will maintain complete originality while including information in your paper. This way, they WILL uphold your academic integrity at all cost.
Answers: Introduction The process of developing a successful business entity requires a multidimensional analysis of several factors that relate to the internal and external environment in commerce. The areas covered in this current unit are essential in transforming the business perspective regarding the key commerce factors such as ethics, technology, culture, entrepreneurship, leadership, culture, and globalization (Nzelibe, 1996; Barza, 2...Read More
Answers: Critical reflection on the objective, design, methodology and outcome of the research undertaken Assessment-I Smoking and tobacco addiction is one of the few among the most basic general restorative issues, particularly to developed nations such as the UK. It has been represented that among all risk segments smoking is the fourth driving purpose behind infections and other several ailments like asthma, breathing and problems in the l...Read More
Answer: Task 1 1.0 Data on staff turnover and demographics That includes the staffing information of JKL industries for the fiscal year of 2014-15, it can be said that the company is having problems related to employee turnover. For the role of Senior Manager in Sydney, the organization needs 4 managers; however, one manager is exiting. It will make one empty position which might hurt the decision making process. On the other hand, In Brisba...Read More
Answer: Entrepreneurial ventures Entrepreneurship is the capacity and willingness to develop, manage, and put in order operations of any business venture with an intention to make profits despite the risks that may be involved in such venture. Small and large businesses have a vital role to play in the overall performance of the economy. It is, therefore, necessary to consider the difference between entrepreneurial ventures, individual, and c...Read More
Answer: Introduction An operating system (OS) is defined as a system software that is installed in the systems for the management of the hardware along with the other software resources. Every computer system and mobile device requires an operating system for functioning and execution of operations. There is a great use of mobile devices such as tablets and Smartphones that has increased. One of the widely used and implemented operating syste...Read More
Get top notch assistance from our best tutors !
Excel in your academics & career in one easy click!