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Case Study on Law of Business

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Added on  2020-04-07

Case Study on Law of Business

   Added on 2020-04-07

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Running head: LAW OF BUSINESSLaw of BusinessName of the StudentName of the UniversityAuthor Note
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1LAW OF BUSINESSTable of ContentsQuestion 1........................................................................................................................................1Question 2........................................................................................................................................3Reference.........................................................................................................................................6
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2LAW OF BUSINESSQuestion 1 According to the case study the issue has been arises when the directors of the ChocolateCleaning Products Pty Ltd (“CCP”) Alana and David has decided to fire Max who is thecompany solicitor and also owned 5% of shareholders of the Company. Now Max wants toenforce the clause in the constitution making or as a company solicitor. When Max has beenengaged in the Chocolate Cleaning Products Pty Ltd (“CCP”) Company he has included a clausein the constitution of the company where he mentioned about himself as the company solicitedand which is not replaceable accept for negligence act by him1. Now CCP has already a Sol who is an investor and mentor and experience in the cleaningproducts industry. Here they think it is enough of having Sol’s advice in regards to proposedexpansion activities and there is no need of Max for other activities in the company where theyalso insert new clauses which mentioned the right to expropriate the shareholding of membersowning less than 10% of the total shares issued2. a) The 136 of Corporation act provides the legislation where a company can form theconstitution which has been effective for the relatable company and every members of it. Underthe section 9 of the Corporation Act has provided the special resolution where the companymembers specially the shareholders provide their words and with at least 75% of votes by theshareholders has passed in favor of the resolution3. It is also important to mention that when Max has engaged with the company he hasincluded a clause in the constitution appointing himself as a company solicitor and not replacedexcept for negligence 4therefore the directors has the knowledge about the clause and as Max notengaged with any activities of negligence therefore they cannot replace him. However in theGeneral Meeting the directors of the company has passed a special resolution which has beenused as a altar for the company’s constitution and also inserted new clause where board has1 Hiller, Janine S. "The benefit corporation and corporate social responsibility." Journal of Business Ethics 118.2(2013): 287-301.2 Knepper, William E., et al. Duty of Loyalty. Vol. 1. Liability of Corporate Officers and Directors, 2016.3 Coffee Jr, John C., Hillary Sale, and M. Todd Henderson. "Securities regulation: Cases and materials." (2015).4 Knepper, William E., et al. Duty of Loyalty. Vol. 1. Liability of Corporate Officers and Directors, 2016.
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