Dayla is the sole director and shareholder of Globe & Co. Pty Ltd (“Globe”), a lighting business. Dayla makes all day-to-day and long-term decisions regarding the business. No-one else is involved in the business and Dayla thinks of herself as Globe’s “owner”. To help the business grow, Dayla loaned Globe $80,000 in return for security over 80% of its assets. Pino, who is Dayla’s friend, loaned Globe an unsecured amount of $40,000. To convince Pino to do this, however, Dayla knowingly misquoted Globe’s liabilities so that it appeared that Globe was in a much stronger financial position than it actually was. Unfortunately, the business suffers serious financial losses and is wound up, leaving net assets of $40,000. Pino claims that these funds should be used to repay the money owed to him. Dayla disagrees and says she must be repaid first. Advise Pino. Refer to relevant case law to support your answe

Answer rating: 100% (QA)

This is a case of companys structure and bankruptcy law Since Globe co ... View the full answer