Australian Law Case Study
Added on 2020-04-07
9 Pages2530 Words76 Views
1Cover SheetName of the studentStudent IDWord count
2ContentsNorth V Marra Developments Ltd (1981)...................................................................................................3Case introduction.....................................................................................................................................3Facts of the case...................................................................................................................................3Issue.....................................................................................................................................................3The duties/responsibilities breached........................................................................................................4Reasons why the duties were breached................................................................................................4Decision of the Court...............................................................................................................................4Reasons for the decisions and critically analyses of the decision............................................................5The relevance of the decision to the development of Australian corporations law..................................7Reference List.............................................................................................................................................9
3North V Marra Developments Ltd (1981) Case introductionThe leading case of North V Marra Developments Ltd (1981) was decided by the High Court ofAustralia on 9th December 1981. The Hon’ble Stephen, Mason, Murphy, Aickin and Wilson JJdecided the case against the Appellant and in favor of the Respondant.Facts of the case As per the fact of the case, the Appellants are the member of a stock broking firm (Sydney StockExchange Ltd). The Appellants were initially trading in the name of NORTHS but are nowconsidered as J. & J. NORTH. In 1954, Marra (Respondent) was incorporated as a public company. There were various ruralproperties that were acquired by Marra in 1974 in New South Wales. Its ninety three percentissued and paid up capital was held by 5 families. The shares of the company were listed onSydney Stock Exchange. But, prior to 1974 the true value of the company assets were not depicted with the help of thebalance sheets of the company or the market value of the assets. Considering with the situation,the Appellants in around December 1972-February 1974 submitted that there is a need thatmarket capitalization of the asset must be done so that the true value of the Marra assets can bedetermined. There were three recommendations that were given by the Appellant and all the three wereaccepted by the Respondent.It is alleged by J. & J. NORTH that they have provided advisory services regarding thereorganization of the capital of Marra Developments Ltd. ("Marra") and advised on the takeoverof Marra upon Scottish Australia Holdings Ltd. ("Scottish") and thus they are eligible forremunerations and the interest thereon from the Respondents. (Jade, 2017)IssueThus the main issue that was developed from the facts of the case was whether the Appellant isliable to claim the remuneration with interest from the Respondent.
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