Busy Dave holds 10% of the issued share capital of Old Man Emu Pty Ltd. Bill Balljoint and Susie Septic are directors of the company and each hold 45% of the issued share capital. Busy Dave suspects that the directors are profiting by undertaking transactions personally, rather than operating through the company. When Busy Dave complained to the directors they told him that the Corporations Act 2001 (Cth) allows the directors to retain profits from transactions in which the directors have a material personal interest.

 

 REQUIRED: (a) Busy Dave would like to inspect the books and records of Old Man Emu Pty Ltd. What rights does Busy Dave have under the Corporations Act 2001 (Cth) to examine a company's financial records? [3 Marks] 

(b) Describe the courses of action under the Corporations Act 2001 (Cth) that Busy Dave could use to initiate legal action against the directors. [17 Marks]

 

2) One World Ltd, a company without a constitution has five directors: Angela Newsprint, the chairperson; Bill Boost, the managing director; and Cathy Nails, Donald Dave and Elaine Elbow, the non-executive directors. The board of directors meets every 3 months. Cathy has advised the board that she will not be present at the next board meeting to be held in a week's time as she has to look after her husband who has been admitted to hospital. One World Ltd has not been trading profitably for some time. The following item of business is included in the agenda for the meeting that has been sent to all five directors. To consider entering into a contract with Ace Travel Pty Ltd for the provision of business advice to One World Ltd as to how to improve its financial position. Ace Travel Pty Ltd has 2 shareholders, Dale Newsprint (husband of Angela) and Cynthia Dave (mother of Donald).

 

REQUIRED: (a) Advise the directors of One World Ltd of any fiduciary duties or other obligations they may have under the Corporations Act 2001 (Cth) and case law in deciding whether to enter into a contract with Ace Travel Pty Ltd. [15 Marks]

 (b) Discuss whether Cathy has fallen short of the level of participation expected of her under the Corporations Act 2001 (Cth) and case law? [5 Marks]

 

This is ILAC essay please be detailed with cases and legislation from Corporations Act.For both questions.

Need detail in Step and 3 and apply the scenario in step 3 with backing up with plenty of  cases and legislation.

Please help make strong argument.

Answer rating: 100% (QA)

Question 1 a Busy Dave has the right to inspect the books and records of Old Man Emu Pty Ltd under section 293 of the Corporations Act 2001 Cth Section 2931 of the Act provides that a member of a comp... View the full answer