ACC220 Law of Business Associations

Added on - 08 Nov 2019

  • ACC220

    course code

  • 10

    pages

  • 2009

    words

  • 124

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Showing pages 1 to 3 of 10 pages
Running Head: Law1Law
Law2Answer 1Issue:Part A-Whether Max has right to enforce the clause stated under constitution whichmakes him solicitor of the company?Part B- whether Max can prevent the inclusion of the clause related to the expropriation of sharesof those shareholders who holds less than 10% of shares?Law:Section 232 of the Corporation Act 2001 states, Court has power to make order undersection 233 of the Act, if:Any conduct related to the affairs of the company,Any actual or propped act or omission by the company or on behalf of the company,Any resolution, proposed resolution passed by members or class of membersIs either:Contravenes the interest of any member of the company, orOppressive or unfair against any member of the company,Section 233 of the corporation Act 2001 states, Court has power to make following orders underthis section:Company must be wound upExisting constitution of the company must be modified or repealed.Regulation regarding the conduct of the company affairs in the future.
Law3For purchase any shares by any member to who shares in the company has beentransmitted by will or by operation of law.Purchase of shares with an appropriate reduction in the share capital of the company.Order company to file, prosecute, defend, and discontinue any particular proceedings.Provide authorization to any member or person who has shares in the company throughtransmission, to file, prosecute, defend, and discontinue any particular proceedings onbehalf of the company or in the name of the company.Appoint receiver for any particular property or all of the property of the company.Prevent any person from engaging in any particular conduct or from doing any particularact.Order any person for doing any particular act.These section further states, Court can make following orders for altering the Constitution. Ifcourt make any order under this section for the purpose of repeals or modify the constitution ofthe company, then power of the company under section 136 is restricted if such changes arecontrary with the provisions of the order made by the Court, unless:Court specifically stated in the order that company can done changes in the constitutionor repeal the constitution.Leave is obtained by the company from the Court.However, it must be noted that if any person established that conduct in question stated underSection232(a), (b) or (c), then also for getting relief under section 233, it is necessary that personmust satisfy:
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