Corporate Law Exam Questions and Answers

Question 1:

Explain the principle of separate legal entity in relation to companies and with reference to the principles of attribution discuss who is liable out of MEL, Mr Milnak and Yulia under the lease and also whether any of them are liable for the negligent driving of the delivery truck by the MEL employee.

Question 2:

Explain the law relating to distributions under the Companies Act 1993, and the obligations that Mr Milnak and Yulia are under in distributing the 40,000 dollars. Also outline the possible consequences for them of not meeting those obligations.

Question 3:

Briefly explain what a major transaction is and whether a resolution in writing is sufficient to pass a resolution approving a major transaction. Discuss what Li's best remedy or option under the Companies Act 1993 would be.

Question 4:

Briefly outline to Elizabeth her role as receiver of PDL and advise Elizabeth in respect of who has priority over the espresso maker under the Personal Property Securities Act 1999.

Question 5:

Explain the purpose of a statutory demand. What can be done by ECL about defending the statutory demand issued by Smith? What may happen if ECL does nothing?

Question 6:

Explain whether Mr Milnak and/or Yulia can be held personally liable for the losses suffered by MEL now that it is in liquidation.

Question 7:

Mr Milnak is thinking of setting up a trading trust with a corporate trustee. Advise Mr Milnak as to the nature of a trading trust including the obligations the corporate trustee would owe to beneficiaries and the obligations that Mr Milnak would owe as a director of the corporate trustee.

Question 8:

Mr Milnak is considering buying a fast food franchise. Explain what a franchise is and as part of your answer explain how entering into a fast food franchise agreement would be different from Mr Milnak starting his own fast food restaurant as a sole trader.