Company Law: Issues, Rules, and Applications

Running head: COMPANY LAW
Problem and Solution
Name of the Student
Name of the University
Author Note

1COMPANY LAW
Question two
Issue:
Considering the facts of the case, three issues have been cropped up in this case which
are as follows:
 Whether the appointment of Fred and Trevor for the post of manager has attracted the
provisions of the Corporation Act or not
 Whether there is any differences in between limited company and private limited
company or not
 Whether the directors of the present company have made any breach by issuing
company’s share to Eddie
Rules:
The issues of the case are based on the provisions of the Corporation Act 2001 and on the
provisions of Australian Securities and Investment Commissions. According to section 180 of
the Corporation Act, it is the duty of every director to perform their duties with due care and
diligence. It has been stated that no directors are allowed to act in any way that goes against the
interest of the company. The directors under section 201J of the Corporation Act appoint the
managers or the managing directors. However, the directors are taking the decision in a meeting
and after such appointment; they should inform the Australian Securities and Investment
Commissions.
The second issue is based on the difference in between limited and private (pty) limited
company. If the shares of a company can privately be owned and limited in the private hands, it