Simon has decided he will register a company Cosec Pty Ltd and offer company secretarial services. Before he is ready to register the company he searches for a suitable office and finds a perfect location.Simon signs a 20 year lease under his name. He also signs a 2 year rental agreement with a telephone company, signing on behalf of the proposed company.

Before Cosec Pty Ltd is registered Simon gets offered an attractive sum of money to assign the office lease over to another party.Simon takes the money and transfers the lease.

Cosec Pty Ltd is registered and at the first directors meeting the ratification of Simons telephone agreement is considered.The directors opt for another telephone system that they consider better suited to the companys needs.

REQUIRED:

(a)Discuss whether Simon breached any obligations by transferring the office lease.

(b)Does the telephone company have any right of action against Cosec Pty Ltd or Simon?

Advised using COMPANY LAW and Using of IRAC FORMAT