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Business Law- Assignment

   

Added on  2020-03-23

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Running head: BUSINESS LAW ASSIGNMENTBusiness Law AssignmentName of the StudentName of the UniversityAuthor Note
Business Law- Assignment_1
BUSINESS LAW ASSIGNMENT1Answer 1:IssueDetermining the various steps that Galli might consider, in dealing with the failure in dividendpayment.RuleUnder Section 233 of the Corporation Act 2001 (Cth), the court is empowered with the abilityto bestow relief, as stated in the Section 232. According to the said act, any organization memberor outside it has the right to condemn the members of the directorial board, it their decisions oractions are considered to be an act of selfishness and not for the organizational gain. The saidorder is made in such a way that the damages are securely met.Though, the duty to exact the wrongs of the company is solely done by the court, it alsodetermines whether any breach of contract or unlawful action was conducted. A valid question ofdetermining whether an act conducted by the directorial board is fair or unfair was stated byBrennan J, in the case of Wayde V New South Wales Rugby League Limited as per the Section320 of our Corporations Act.The court of law though, is not inclined to take any unique skills of the directors intoconsideration if a breach in the law is deemed to have conducted by them. It can be said that thepreviously mentioned Section 320 works in the favor of the court, even if a decision, in thedirector’s point of view is correct, but the judges have reasons to think otherwise.It was seen in the Brookton Co-operative v FCT [1981] HCA 28 case, it was ruled by the courtthat minor delinquencies, such as failure in the dividend payment, cannot be subjected under
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BUSINESS LAW ASSIGNMENT2terms like unfairness and oppression even when the company is not financially viable and canpay. Though, a nonpayment of the dividend, even when payable, can be considered as an act ofoppression when the organization has a bad financial record of having made such disregard manytimes in the past. The court has to first examine the company’s history before making a decision.ApplicationAs in the rules governing the Corporation’s Act, Australia, Galli’s Grandchildren have the rightto condemn the company as for nonpayment of the said dividends and plead for relief. As of theorganization, it’s in FWPL constitution to not show discretion on dividend payments and making‘Class A’ stockholders eligible for applying for the said delinquency (Schultz 2016). Since the company is clearly seen to have the capability to pay off the dividends promised, itcan be said that it is a legitimate case of oppression. In the said case, FWPL even though havingthe financial wealth in order to meet the divided quota of class A stockholders, neglected theirresponsibility and failed to pay them off, this is a violation of the rights of Galli’s Grandchildrenand oppressing them.ConclusionAs per the Section 233, the children are eligible to proceed with the claim.Answer 2:Issue
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