Questions: Question 1: Cotton Limited holds 89.5% of the shares in Satin Co Limited. The remaining shares are held by Silk and several other small investors. The Board of Satin wants the company to become a wholly owned subsidiary of Cotton Limited as they expect this will result in both taxation benefits and a saving on accounting fees and administration charges of about $230,000. Cotton Limited offers to buy the shares held by Silk an...Read More
Question: Describe about the Corporations Law for Governing Companies. Answer: Introduction The directors are the people responsible for governing the company, on behalf of the shareholders. Corporations Act, 2001, in section 198A (1) provides that the business of any company has to be managed by, or has to be managed under the directions given by the director. This embarks some duties, as well as, responsibilities on all the direct...Read More
Question: Discuss about the Case of Decorator Agencies Pty Ltd v Jeffries Industries Ltd. Answer: Case Introduction The case involves a dispute between a couple of parties, namely, ‘Fame’ and The Australian Securities Commission, better known simple as the ASC, though it has played the lawful role of a third respondent (Lowry, 2012). The following case made the section 995 and section 998 of ‘Corporations L...Read More
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