Project Report on Corporation Law
8 Pages1505 Words223 Views
Added on 2019-11-26
Project Report on Corporation Law
Added on 2019-11-26
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CORPORATION LAW 1NameCourseProfessor’s NameUniversityDate Due
CORPORATION LAW 2While the corporation law legislation given out by the federal government, contains very significant proposed amendments to the calling of all company meeting and other matters concerning corporations, it does not adequately address the proposed amendments to the section 245T of the 2001 Corporation Act. Section 245T clearly governs the rules relating to the groundsupon which dividends may be declared and paid by all corporations (Lim, 2013, 402). In addition, there has been an obvious challenge facing Corporations Laws and its amendments due to the fact that there have been disagreements between various departments of the government onhow these amendments may work. In connection to this, this paper aims at discussing the Corporation law in its entirety. Besides, the paper seeks to look into three questions surrounding the corporation law and using various case laws on the same.Question 1What action, if any, can the Galli grandchildren take in respect of non-payment of the dividend?IssueAt first, the FWPL Company pays all A class shareholders their dividends. Jason who is ashareholder in the company feels that Galli grandchildren are undeserving and lazy and should not be getting these bonuses. In connection with this issue, the Company Board of Directors agrees not to pay more dividends but retain the amounts to fund the organic vineyard development at Robinvale. Do the Galli grandchildren have a good case against the company?RuleAccording to the Section 180 (1) of the Act, it is evident the company should handle all its exercises with care and diligence. They should do all that which does not harm the
CORPORATION LAW 3shareholders. In addition, this section states that a director or an officer of a company shall always exercise whatever power vested in him or her and discharge their duties in a way that shows care and diligence (Lowry, 2012). Another critical section is section 181. In section 181, the Corporation is also apparent on the issue of good faith. All directors or officers shall discharge and also exercises all their duties in good faith. On the other hand, we have section 182. In this section, it is categorically clear that all directors shall not improperly use their positions in the corporations. This means that they shall not use their positions to wrongfully gains. Finally, we have section 183. This section provides that, all the information acquired by the directors shall not be utilized in the wrong way (Tomasic, Bottomley, & McQueen, 2002). This four section provides the basis on which all officers and the directors should perform their functions.ApplicationAfter a careful review of the section laid out in the Corporations Act, then it is easier to apply it in our case. Section 180 attracts civil responsibility that all directors at all times must be reasonable. Section 181 prompts us to look at the situation and understand whether the decision by FWPL was in good faith? In addition, did the board of directors misuse their positions? Undersection 182, it provides that all directors should not improperly use their position to gain advantages. Clearly, FWPL has not done that. It is also clear that the reason behind the non-payment of the dividend was to fund an organic vineyard. ConclusionIt can be concluded that from the above analysis that Mario as a member of the board has not breached these sections. In fact, the development to be funded will benefit them all.
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