Corporations Law - Rules and Regulations for Companies in Australia

Running Head: CORPORATIONS LAW
CORPORATIONS LAW
Name of the Student:
Name of the University:
Author Note

1CORPORATIONS LAW
Answer One:
Issue:
In the given set of circumstances, the issue is to identify whether Basher and Wallace had
unfairly treated and oppressed.
Rule:
The Corporations Act 2001(Cth) lays down the rules and the regulations which are binding upon
companies in Australia. It has been provided in section 232 of the Corporations Act 2001 that a
court has the power and authority to make an order under section 233 if the court believes:
 The conduct of the affairs of the company
 An actual or proposed omission or act on behalf of the company
 The proposed resolution or a resolution of the members of the company or a class of
members of a company
 is either contrary to the interests of the members
 Oppressive to, unfairly discriminatory to or unfairly prejudicial against the members in
any capacity.
In section 233 of the Corporations Act 2001(Cth), it has been provided that the court has the
authority or power to pass an order in relation to the affairs of the company. The court can pass
the following orders if it feels a company or corporation has engaged in oppressive misconduct
of affairs:
 An order to wind up the company

2CORPORATIONS LAW
 An order to repeal the constitution of the company or direct the company to modify the
existing constitution of the company.
 An order regulating the affairs of the company in the future
 An order for the purchase of shares by any person or member to whom a share has been
transmitted by operation of law or by the will of a deceased person. An order for
purchasing the shares with an appropriate reduction of the companies’ share capital.
 An order for the company to prosecute defend and Institute specified proceedings
 An order authorizing a person or a member to whom I share has been given by the
operation of law or by will of a deceased person for the purpose of prosecuting defending
are discontinuing specified proceedings on behalf of the company.
 An order restraining of person to do a specific act
 Under which requires a person do the specific act. In sub section 2 of the
aforementioned act it has been provided that in case the court orders for winding up a
company, the provisions of winding up of companies would apply which has been
provided under section 461.
 It has been for the provided in subsection 3 that in case of court orders for repairing or
modifying the constitution of a company or requires the company to adopt a new
constitution, the company will not have the power under section 136 to change or reveal
the constitution if such BP low change would be inconsistent with the provisions of the
order.
In section 234 of the corporations act it has been provided that an application for an order under
section 233can be made by