Corporate Law

Running head: CORPORATE LAW
CORPORATE LAW
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1CORPORATE LAW
Table of Contents
Facts.................................................................................................................................................2
Issue.................................................................................................................................................2
Rule..................................................................................................................................................3
Application......................................................................................................................................5
Conclusion.......................................................................................................................................7
Reference.........................................................................................................................................8

2CORPORATE LAW
Facts
In the given case it can be seen that in 2010 a private company named ‘The Grumpy
Grande Pty Ltd’ was formed by five Brown brothers. The brothers decided to share profit sharing
and decision making equally. The constitution of the company stated that the company
specializes in delivering fresh brewed premium coffee to different sporting, corporate or social
events. The constitution of the company included the five brothers as the sole directors and
shareholders of the company and that all business decisions would be made with majority votes.
The company’s constitution further stated that the shares could only be sold to the existing
directors internally with the permission of other directors. In few years with the slowing down of
the business there was a great strain in relation between the five brothers. In suspicion that the
younger brother Tim was thinking of resigning from the company all other brothers bullied Tim
by using their majority votes to block Tim’s ideas relating to business. The brothers further sold
valuable assets of the company to themselves at bargain prices ignoring the protests of Tim. The
conversation of the oldest brother on phone was overheard by Tim one afternoon. The oldest
brother was heard discussing blocking Tim’s shares to be sold by using their majority votes. The
brother was further heard saying that if they could make Tim angry enough he will walk out of
his own from the business and the others would not be liable to pay anything to Tim.
Issue
In the given case two issues are found. The first issue is finding out the equitable
remedies available to the youngest brother Tim. The second issue is finding the statutory
remedies that Tim is qualified for in the given situation.