University Case Study: Commercial and Corporation Law Assignment

This document presents a case study analysis focusing on commercial and corporation law. The first case study examines the rights of a minority shareholder and the responsibilities of company directors, particularly concerning asset management and disclosure obligations. The analysis highlights the legal recourse available to the shareholder under company law. The second case study explores fundraising methods for a company, specifically an Australian airline. It discusses various approaches such as issuing bonds, selling common stock, and utilizing profits. The document provides recommendations for the company's fundraising strategies, referencing relevant legal principles and financial practices. The content aims to provide a comprehensive understanding of corporate governance and financial management within a legal framework.

Running head: COMMERCIAL AND CORPORATION LAW
Commercial and Corporation Law
Name of the Student
Name of the University
Author note

1COMMERCIAL AND CORPORATION LAW
Case Study 1
In the given case study, Tom was a minor shareholder of the ABC Ltd. The directors
of the company had sold the assets of the company to purchase an island resort in their own
names. Therefore, the directors are said to be the controlling shareholders of the company and
hence, they will have more rights on the property compared to a minority shareholder1. Tom
was made aware of these activities at a general meeting and soon after he wanted to take an
action against the directors of the company. As per the Company Law, the directors will be
held liable if they take such actions by not disclosing it to the existing shareholders of the
company. Being a minor shareholder, Tom can claim for his amount of shares that he had
invested in the ABC Ltd. As per the guiding rules on Principle 2, individual directors has
direct control and right over the company of ABC Ltd2. but it is also their responsibility to
inform every shareholder of the company about the activities. Therefore, Tom can initiate an
action against the directors.
Case Study 2
As seen in this case study, Flywell Ltd was the owner of an Australian airline. The
Flywell Ltd. wished to persuade each investor to invest $10,000 with the company. The
company had focused to raise the funds between $9 million and $11 million in new funds.
Therefore, a company can raise its fund with the help of five primary methods that are
generally used by the corporations3. It can issue bonds, put a sale on the common stock, can
issue preferred stock, borrow from finance inventories and can put the profits on use.
Proportional granting of ownership in the firm is given to the investors in exchange of
1 Bîgioi, Adrian Doru, and Cristina Elena Dumitru. "The rights of shareholders–basic principle of corporate
governance by means of case-specific jurisprudence." Audit Financiar 14.136 (2016): 401-412.
2 Matsusaka, John G., and Oguzhan Ozbas. "A theory of shareholder approval and proposal rights." The Journal
of Law, Economics, and Organization 33.2 (2017): 377-411.
3 Womack, James P., and Daniel T. Jones. Lean solutions: how companies and customers can create value and
wealth together. Simon and Schuster, 2015.

2COMMERCIAL AND CORPORATION LAW
money. Corporations raise money by this popular method. Therefore, the Flywell Ltd can
fund raise the obligations by these primary methods under the Corporations Act. The Board
of Directors of Flywell Ltd can purchase extra plains by raising the funds since the company
does not have sufficient capital fund4. The advice, which the Flywell Ltd. should be given, is
that it should utilize the primary sources for raising the funds.
4 Kshetri, Nir. "Success of crowd-based online technology in fundraising: An institutional perspective." Journal
of International Management 21.2 (2015): 100-116.

3COMMERCIAL AND CORPORATION LAW
References:
Bîgioi, Adrian Doru, and Cristina Elena Dumitru. "The rights of shareholders–basic principle
of corporate governance by means of case-specific jurisprudence." Audit Financiar 14.136
(2016): 401-412.
Kshetri, Nir. "Success of crowd-based online technology in fundraising: An institutional
perspective." Journal of International Management 21.2 (2015): 100-116.
Matsusaka, John G., and Oguzhan Ozbas. "A theory of shareholder approval and proposal
rights." The Journal of Law, Economics, and Organization 33.2 (2017): 377-411.
Womack, James P., and Daniel T. Jones. Lean solutions: how companies and customers can
create value and wealth together. Simon and Schuster, 2015.