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Corporate Governance and Law Reform

   

Added on  2020-10-05

10 Pages2850 Words457 Views
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CORPORATE LAW
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Table of ContentsINTRODUCTION...........................................................................................................................1CORPORATE LAW .......................................................................................................................1Remedies available to Tim to overcome from the available situation:.......................................1CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................7
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INTRODUCTIONAs per the Corporation Act, 2001 corporate law is enacted for the purpose of controllingthe business operational and their internal activities which is carried by the directors andshareholders of the company. As the role of directors has the fiduciary position in the companyand their decision had crucial effect on smooth and effective working. Every business entity hadto work under the rules and regulation imposed by the government when the company is at thetime of formation, incorporation of their business identity and carry their activities for longerterm growth. As for not continuing their proper business liabilities, courts had powers to sue thecompanies for not carrying their proper business activities. Present report is based on TheGrumpy Grande Pty Ltd. (TGG) which is formed by five brown brothers in 2010. Report willinclude about the Equitable remedy and the one statutory remedy available to Tim (one of thebrown brother in TGG company) to overcome for the situation which is faced by their remaining4 brothers in the business. CORPORATE LAW Remedies available to Tim to overcome from the available situation:Issue: In the case of TGG which is a private company had 5 directors which are of same family.In 2010, they establish the business and all the brother shared equal in terms of profits anddecision making (Appuhami and Bhuyan, 2015). As they all are the only directors andshareholder of the company. The second rule is relating to wishing to sell shares in the company,any directors can only sell share if they obtained permission for the other directors internally andeven to the existing directors. Lastly that all the business decision is made through majority ofvoting.As the business is growing with constant success in the market and each partners decideto share their profits and decision making on equal basis. In last few years their business isslowing down which results in affecting the relationship between the 5 brown bothers (Ramsayand Tan, 2018). With this affect, younger brother Tim decides to resign from the post and alsosells their share at bargain rates to other directors. To stop the Tim, they plan against him so thathe cannot sell his shares to existing directors. As it is mentioned in the agreement which theymade before entering into the contract. That no directors can sell the shares to any personwithout the majority vote of the remaining directors. Thus, Tim hears the conversation between1
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