Corporate Law & Share Buyback Analysis

This assignment delves into a corporate law case study focusing on unpaid dividends to shareholders (Galli grandchildren), the legality of share buybacks for Nick Galli and FWPL Mario, and the process of reducing capital under provisions like section 256B and 256C. Students will analyze data, complete remaining chapters, and submit the analysis for tutor feedback.

MARKETING RESEARCH ESSENTIALS

TABLE OF CONTENTS
Background..................................................................................................................................1
Objectives....................................................................................................................................1
Questions.....................................................................................................................................2
Research approach.......................................................................................................................2
Sample size and selection............................................................................................................3
Type of research (qualitative/quantitative)..................................................................................3
Research tools..............................................................................................................................3
Method of analysis.......................................................................................................................4
Gantt chart...................................................................................................................................4
Proposed outcomes......................................................................................................................6
REFERENCES................................................................................................................................7

Background
Corporation law is directly associated with the corporate entities, and it takes into
consideration the most significant aspects such as incorporation, type of shares, shareholders
agreement, etc (Strine Jr & Walter 2014). Apart from this, the commercial law is linked with the
interaction between the firm and the third party that involves license agreement, terms, and
condition, reseller agreement, etc (Finch & Milman 2017). It provides the framework in which
the business activities are being carried out. Certain rules and regulations are present that are
associated with the corporate and commercial law, and it directly supports in knowing how the
actions of the entities touch the lives of the individual (Nanda, Wilkins & Fong 2017).
The present proposal will be based on different cases where the first one is associated
with nonpayment of the dividend amount to the shareholders. Considering the corporation act
where shareholders have right to obtain the dividend amount as per the section 254W. In the
second scenario, FWPL Mario and Nick Gallio want to invest in the shares of the company
through buyback process. So, in this processing company will offer shareholders to purchase the
shares and after that same shares are offered to the corporation. In this third scenario if FWPL
wants to get rid of the class shares by way of a reduction of capital then they must follow the
corporation at the section 256B of corporation act.
Objectives
The main objectives of the present study will be:
 To analyze the case of Galli grandchildren where they have not received dividend
payment from the board of directors of the GML Company.
 To analyze the law and practices that highlights the dividend right of the shareholders
 To identify the key reasons due to which directors of GML Company are not able to
provide dividend.
 To analyze the case of FWPL Mario and Nick Galli with respect to share buyback option
 To identify the key benefits associated with the share buyback process to the company
 To analyze the case of FWPL with the motive to get rid of the class shared by reducing
capital so as to follow the corporation act at the section 256B
 To analyze the process of share reduction process that company can undertake
So, these will be main objectives of the present research on the basis of which the research
will be undertaken.
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Questions
 What are the legal actions that can be taken against the directors of GML company for
nonpayment of dividend to the shareholders?
 What are the implications regarding breach of section 181, 182, 183 and 184 of the
corporation act 2001?
 How effective is the share buyback process for the companies and what are the benefits
associated with the same?
 What are the valid reasons due to which directors of FWPL wants to reduce the share
capital?
 What is the process of reduction that company needs to follow?
So, these will be the main research questions on the basis of which the entire research will be
carried out. Selection of right research questions is necessary in every research as it provides
direction to the entire study in every possible manner.
Research approach
It is regarded as the plan and procedure that takes into consideration various steps from
the broad assumption to the detailed method of data collection, interpretation, and analysis.
Selection of any type of approach relies on the nature of the study and in turn allows
accomplishing the key objectives linked with the research. Two types of approaches are present
that are undertaken in the research, and they are inductive and deductive (Flick 2015). In the
inductive approach, results move from specific to general and in the deductive approach results
move from general to specific.
Both the approaches are different from each other (Taylor, Bogdan & DeVault 2015). In
the present study deductive approach will be undertaken where the entire research will be carried
out in general form on the basis of commercial and corporate law basis. Further, various cases
will be analyzed such as the process of share buyback, legal actions that shareholders can take if
the company does not pay the dividend, etc (Kraakman et al. 2017). Through the selection of this
approach all these areas will be undertaken that will allow in accomplishing the key objectives
that will be associated with the research. It will lead to in-depth analysis and the results obtained
will be applicable to specific companies or industries.
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Sample size and selection
In every type of research, it is necessary to select appropriate sample size so that adequate
amount of data can be collected for accomplishing the aim and objectives of the study. It is the
ultimate responsibility of the researcher to select the respondents in the study that can provide
reliable and authentic information (Mackey & Gass 2015). The present study will be based on
analysis of various corporation and commercial law cases. For conducting the study, 10 lawyers
who are associated with the field of commercial law will be selected so that right amount of
information can be obtained easily. Further, they will assist in knowing how different cases
associated with the company law can be resolved easily and in the proper manner. Apart from
this, different sampling techniques are present that are undertaken in the study, and it involves
random, purposive, etc (Panneerselvam 2014). In the present research, purposive sampling
technique will be adopted where lawyers who are aware of commercial law will be approached
by utilizing the purposive technique where the main focus is on knowing the main purpose of
conducting the research.
Type of research (qualitative/quantitative)
Quantitative research is present in the numeric form where statistical tools and techniques
are employed for conducting the research, and in turn, it leads to favorable results. On the other
hand, qualitative research is in the non-numeric form where the statistical tools are not formed
(Roberts 2013). It has less emphasis on analytical technique with the motive to interpret data. On
the other hand, in quantitative technique main stress is on understanding the relationship between
the variables. The present that will be conducted will be qualitative where secondary sources of
data collection will be undertaken and through this entire research will be carried.
Research tools
Selection of right tools in every research is most significant as it allows in answering all
the research questions easily. Exploratory as one of the design will be undertaken where main
stress will be on exploring new ideas that will be associated with the research (Salaberry &
Comajoan 2013). Through this case, the analysis will be carried out properly, and this will bring
favorable results for the business. The research will be qualitative where non-numeric data is no
use, and less emphasis is on analytical technique to interpret the data. Apart from this, it allows
in the detailed reading of the secondary data to derive themes, models, etc. Further, data will be
collected from the lawyers who have expertise in the field of commercial and corporate law. So,
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selection of all these tools will directly assist in accomplishing the main objectives associated
with the study, and it will surely lead to reliable results that suit with the requirement of the
research.
Method of analysis
Selection of appropriate analysis method is necessary, and it is mandatory for the
researcher to select proper method of analysis. Two techniques of data analysis are present that
are employed in the research, and it involves qualitative and quantitative (Silverman 2016). In
the quantitative technique, statistical tools are employed for analyzing information, and it leads
to favorable results. On the other hand, in the qualitative method, no statistical tools are
undertaken for analyzing the information.
In the present research different cases that are associated with the commercial and
corporate law will be analyzed with the help of qualitative method where no statistical tool will
be undertaken for analyzing the information. The reason behind adopting qualitative method is
that the data in the present research will be present in nonnumeric form and due to this reason
qualitative approach will be most appropriate for the study (Tarone, Gass & Cohen 2013). It will
surely allow in accomplishing the aim and objectives of the study, and in turn, reliable results
will be obtained.
Gantt chart
Activity Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9
Writing
Research
Proposal
Reading
various
literature
Finalizing the
aims and
objectives
Draft
literature
review
4

Collect
secondary
data
Analyze
secondary
data
Develop
research
approach
Draft
research
methodology
Develop
questionnaire
Arrange the
interview
Conduct the
interview
Accumulate
the data
Draft
Findings
Analyze data
Complete
remaining
chapters
Submit it to
tutor and
await for
feedback
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Proposed outcomes
From the entire study, different cases will be analyzed that are linked with the corporate
and commercial law. Further, it will be known what actions are taken against the directors of the
company for nonpayment of the dividend. Along with this, what remedy is available to Galli
grandchildren where the dividend is not paid to them. Further, the share buyback process will be
analyzed along with this it will be known whether it will be beneficial for Nick Galli and FWPL
Mario to purchase the shares. Moreover, the reduction of the capital process will be analyzed by
considering the different type of provisions such as section 256B, 256C, etc.
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REFERENCES
Finch, V & Milman, D 2017, Corporate insolvency law: perspectives and principles, Cambridge
University Press, United Kingdom.
Flick, U 2015, Introducing research methodology: A beginner's guide to doing a research
project., Sage, United Kingdom.
Kraakman, R, Hansmann, H, Hertig, G, Kanda, H & Pargendler, M 2017, The anatomy of
corporate law: a comparative and functional approach, Oxford University Press, United
Kingdom.
Mackey, A & Gass, S 2015, Second language research: Methodology and design, Routledge,
Abingdon.
Nanda, A, Wilkins, DB & Fong, B 2017, 'Mapping India’s Corporate Law Firm Sector', The
Indian Legal Profession in the Age of Globalization, p. 69.
Panneerselvam, R 2014, Research methodology, PHI Learning Pvt. Ltd, Delhi.
Roberts, T 2013, ' Understanding the research methodology of interpretative phenomenological
analysis', British Journal of Midwifery, vol 21, no. 3.
Salaberry, MR & Comajoan, L 2013, Research design and methodology in studies on L2 tense
and aspect (Vol. 2)., Walter de Gruyter, Berlin.
Silverman, D 2016, Qualitative research, Sage, United Kingdom.
Strine Jr, LE & Walter, N 2014, ' Conservative Collision Course: The Tension between
Conservative Corporate Law Theory and Citizens United', Cornell L. Rev, vol 100, p. 335.
Tarone, EE, Gass, SM & Cohen, AD 2013, Research methodology in second-language
acquisition, Routledge, Abingdon.
Taylor, SJ, Bogdan, R & DeVault, M 2015, Introduction to qualitative research methods: A
guidebook and resource, John Wiley & Sons., New Jersey.
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