Bindi and Terri think this would be a very profitable endeavour and set up a new company called Potatoes Sellers Pty Ltd to sell Potato Ltd’s potatoes. Can they do this? Bindi and Terri present the Potato Ltd proposal at the board meeting of Banana Ltd. Bindi, Terri and Steve reject the idea on the basis that selling potatoes is inconsistent with Banana Ltd's primary business of selling bananas. Can Bindi and Terri now enter into a transaction with Potato Ltd? How should Terri and Bindi proceed if they want to act upon Potato Ltd’s proposal? Bindi and Terri start Potatoes Sellers Pty Ltd using Banana Ltd’s confidential list of distributors to sell potatoes. Advise Banana Ltd. Steve has a Banana farm that has been owned by his family for several generations. Steve wants to sell the farm to Banana Ltd for $1 million. Can he do this? Advise Steve. Assume Terri and Steve form Potato Sellers Pty Ltd. Potato Sellers Pty Ltd has ten shareholders who are mostly friends and family of Terri and Steve. The board is comprised of Terri, Steve and Dan. Potato Sellers Pty Ltd owns a large potato sorting machine that it no longer needs. Steve wants to enter into a contract with Potato Sellers Pty Ltd to buy the machine. Advise Steve what he should do before entering into the contract.

Answer rating: 100% (QA)

No they might not do this whether or not its 23 of the administrators youd mak... View the full answer