Discuss About The Oppression Remedy In The Corporations Act?
Section 232 of the Corporations Act, 2001 (Cth) covers the provisions regarding oppressive conduct or where the conduct is such which can be deemed as unfairly discriminatory of unfairly prejudicial. Where the conduct under section 232 of this act is established, the court can award remedies under section 233 of this act as a remedy to the undertaken oppressive conduct (Austlii, 2017). Under section 233 the court can order the company to be wound up, or ask the management to do a particular task or refrain from doing something, and in this regard, the company can be asked to purchase or transmit the shares of an individual (Victorian Law Reform Commission, 2016).
Thomas v H W Thomas Ltd (1984) 1 NZLR 686 is a case which proves to be of help here. The court held in this case that the adoption of a conservative financial policy and not paying high dividends could not be deemed as oppressive where the majority have agreed to it and there is a lack of factors which could point towards unfairness. In this case, the court presented three basic conditions which were required for making a case of oppressive conduct and for the remedies to be awarded under the pertinent sections. These three conditions provide that
The case study given here shows that the awarding the dividends was option for the management. Hence, there was no compulsion for the company to declare dividends; and on this basis, A Class shareholders cannot claim an unjustness or unfairness. Applying the case of Thomas v H W Thomas Ltd:
The ASIC, i.e., the Australian Securities and Investments Commission and the Corporations Act, 2001 cover the legislative requirements for the shares to be brought back. Division 2 covered under Part 2J.1 of the Corporations Act provides the procedure and the requirements which have to be undertaken for buyback of the shares (Federal Register of Legislation, 2017). Further, based on section 257A of this act, the disclosure requirement details are covered and in this regard, ASIC’s Regulatory Guide 75 covers the valuation requirement based on the report of the independent expert (ASIC, 2007).
The case study given here shows that the buyback of shares of the company is a possibility for the company, which would help it, particularly if the claim of a party gets successful, and it is shown that the company’s conduct has been unfair, where the court would order the company to buy back the shares. Apart from this, there are other advantages for the company. So, by following the requirements stated above, the shares of the company can be bought back and the requirement of independent expert report can be met based on ASIC’s Regulatory Guide 75.
Capital reduction is that procedure adopted by the company through which the shareholding of the company is reduced by cancelling out the issued shares based on the legislative requirements. There are two key benefits of undertaking capital reduction, the first is the increased shareholders value and the second is the possibility of making the capital structure of the company better than it had been before (Nanda, 2015). The capital reduction can be undertaken only when it does not affect the payments of debts of the creditors. Also, as per section 256C of the Corporations Act, the approval of shareholders has to be undertaken. There are certain other manners in which capital reduction can be undertaken and this includes the share buy-back or the redemption of the redeemable preference shares (ASIC, 2014).
The case study given here shows that the company should go ahead and cancels the shares of “class A” but for this, they would be required to take an approval of the shareholders of the company. They would have to be showed that this proposed capital reduction is fair for every stakeholder and that the capacity of the company in repaying the debts of the company would not be hampered.
ASIC. (2007) Share buy-backs. [Online] ASIC. Available from: https://download.asic.gov.au/media/1240127/rg110.pdf [Accessed on: 01/10/17]
ASIC. (2014) Reduction in share capital. [Online] ASIC. Available from: https://asic.gov.au/for-business/running-a-company/shares/reduction-in-share-capital/ [Accessed on: 01/10/17]
Austlii. (2017) Corporations Act 2001. [Online] Austlii. Available from: https://www6.austlii.edu.au/cgi-bin/viewdb/au/legis/cth/consol_act/ca2001172/ definitions [Accessed on: 01/10/17]
Gibson, A., and Fraser, D. (2014) Business Law 2014. 8th ed. Melbourne, Pearson Education Australia.
Federal Register of Legislation. (2017) Corporations Act 2001. [Online] Federal Register of Legislation. Available from: https://www.legislation.gov.au/Details/C2013C00605 [Accessed on: 01/10/17]
Kandarpa, K. (2016) What is the Purpose of a Share Buyback and How can Shareholders Benefit from it?. [Online] Wise Owl. Available from: https://www.wise-owl.com/investment-education/what-is-the-purpose-of-a-share-buyback-and-how-can-shareholders-benefit-from-it [Accessed on: 01/10/17]
Nanda, D.S. (2015) Reduction in share capital: Analysis. [Online] Corporate Law Reporter. Available from: https://corporatelawreporter.com/2015/02/23/reduction-share-capital-analysis/ [Accessed on: 01/10/17]
New Zealand Official Law Reports. (2017) Thomas v H W Thomas Ltd -  1 NZLR 686. [Online] New Zealand Official Law Reports. Available from: https://www.lawreports.nz/thomas-v-h-w-thomas-ltd-1984-1-nzlr-686/ [Accessed on: 01/10/17]
Victorian Law Reform Commission. (2016) The oppression remedy in the Corporations Act. [Online] Victorian Law Reform Commission. Available from: https://www.lawreform.vic.gov.au/content/3-oppression-remedy-corporations-act#footnote-135972-53-backlink [Accessed on: 01/10/17]
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2018). Oppression Remedy In The Corporations Act. Retrieved from https://myassignmenthelp.com/free-samples/oppression-remedy-in-the-corporations-act.
"Oppression Remedy In The Corporations Act." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/oppression-remedy-in-the-corporations-act.
My Assignment Help (2018) Oppression Remedy In The Corporations Act [Online]. Available from: https://myassignmenthelp.com/free-samples/oppression-remedy-in-the-corporations-act
[Accessed 25 May 2020].
My Assignment Help. 'Oppression Remedy In The Corporations Act' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/oppression-remedy-in-the-corporations-act> accessed 25 May 2020.
My Assignment Help. Oppression Remedy In The Corporations Act [Internet]. My Assignment Help. 2018 [cited 25 May 2020]. Available from: https://myassignmenthelp.com/free-samples/oppression-remedy-in-the-corporations-act.
MyAssignmenthelp.com is one of the noted service providers that deliver essay help. We provide tailored essay assistance to make sure that student gets online essay help exactly in the way they want it to be written. We at MyAssigemnthelp.com have built teams of consultants, who readily attend every query related to help me writing my essay. We provide essay writing help in forms of tips and steps in order o assist students with tough essay assignments.
Answers: 1. Issue The issue that has been identified in the given scenario is whether mortgage can be claimed by ABC Ltd for the land that is owned by Sailaway Pty Ltd which had been mortgaged for the purpose of getting a loan. Law The Corporations Act 2001 (Cth) can be referred to in this given scenario for addressing the relevant issues that have been identified in the given case study. Thus, the relevant sections of the Corporations Act...Read More
Answer: The subject matter of the case is based on CIF contract. In general, contract is an agreement that binds the parties under certain legal obligations. CIF contract provides certain rights and duties specified for the seller and purchaser in a contract. The term CIF means cost, insurance and freight. These types of contract are usually made during the transportation of goods through ship. In case of such contract, the seller has to bear ...Read More
Answers: Answer 1 The variability of different responses regarding the green option failure analysis depends upon questionnaire methods asked to both the guests and housekeepers. Both the questionnaires are based on green option failure analysis. Most of the housekeepers responded as they believed that they would change the sheets and towels anyway. Most of the housekeeper responded as they believed that the towels were not very wet. All the ...Read More
Answers: 1: The present case law is based on the principle of offer and acceptance. Offer and acceptance are the popular legal term in the case of contract law (Stone 2014). When one party makes certain proposals to other with an intention to create legal relationship with him, it is termed as offer. If the other party accepts the offer, contract is made in between them. In general, an offer can be accepted through direct communication. This ...Read More
Answer: 1. Section 17 of the Trade Mark Act 1995 (Cth) defines trade mark as a sign which is used or has the intention to be used for the purpose of distinguishing goods and services provided in or death with, in the course of trade by an individual with goods and services provided by or dealt with another individual. A registered owner is provided with an exclusive right in relation to the use of the trade mark in relation to the go...Read More
Just share Requriment and get customize Solution.
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
The finished product of my assignment was impressive! No stone was left unturned from the required rubric. Easy to follow, original material, and thorough, not to mention, completed more than 24hrs before the requested time. THANKS TO MY MAH EXPERT! ...
THANKS Very timely completion. The attitude of the experts is very good, and it is found that the job requirements are different at different times. The experts completed the new requirements in a short time.
thanks for helpingto get good marks in all the work. i have got good marks. i hope u will provide good work in future
Met the requirements for the assignment. I would definitely recommend this website.