Assignment 1: Australian Contract Law

Write a 700- to 1,050-word paper in which you discuss the roles of law and courts in today’s business environment.

The main player in the business is Mr Rajesh as Director of the company, his brother, Mr Mehta as Financial manager, his brother-in-law, Mr Nankar as Head of management and his cousin, Mr Praveet as the local fund manager. All the top management personnel is formed by family members, and this would cause familiarity threat to the company. Familiarity threats occur when family members can exert significant influence over the decision-making in the company. When Mr Rajesh as director pose a trust to the family members in the daily operation of the company, and there is no periodic checking by independent BOD and non-executive directors, there would be a fraud red flag occurs. So, there are the opportunities occurs in the company for Mr Praveet as local fund managers to commit the

The other material point is that a One Person Company may have only one director. But at the same time there is no bar on more number of directors. However, as per the Act, the total number of directors shall not be more than 15.

Write a 700- to 1,050-word paper in which you discuss the roles of law and courts in today’s business environment.

“We have completed this assignment on our own and have not discussed it with any other individual or used any other unauthorized aids. We acknowledge compliance with the academic requirements (e.g. citation of sources) of the University of Toronto.”

As is required by Daniels, the directors should be familiar with the current unsatisfactory financial status and entering into such transaction could deteriorate the company’s status even further. Under s180, a reasonable director wouldn’t lend a low-rate unsecured loan to a non-related business. Overall, the directors have breached the duty of care for Winanga. They may also owe fiduciary duties to James and Diana if they are in a position of particular advantage.

1. When interpreting legislation, the Courts use several approaches to aid their interpretation. Describe how the literal, golden and mischief rules of interpretation operate.

As a shadow director, under common law, statute law and fiduciary duties, Peter and Jan should be liable to IPO Insurance Ltd. These responsibilities include duties to act in good faith, to act for a proper purpose to meet best interests of the company, and to avoid conflicts of interest.

It recommended that disqualification be available where a director was associated with a single failed company . ‘It is also called for the release of the government’s response to the Companies and Securities Advisory Committee’s 2000 Corporate Groups: Final Report, which had canvassed a wide range of measures for piercing the corporate veil on corporate groups’ . Other recommendations related to administrative developments to databases and the establishment of a hotline for the reporting of phoenix activity

As the directors of Milton; Paris, Vienna and Sydney’s duties are personally imposed on them under s9 CA. This includes the duty to act with diligence and care, to disclose personal interest and to prevent insolvent trading (ss.180(1), 194 & 588(G) CA). Both Vienna and Paris are found

1. Identify the areas of law that are relevant to the chosen media report, and explain how they are relevant to the matters outlined in the report.

Re Hydrodam explains that a de facto director is a person who assumes to act as a director. To establish that a person was a de facto director you must prove that he undertook functions in relation to the company that only a director could discharge. It is not sufficient to show that he was concerned in the management of the company’s affairs.

Identify the areas of law that are relevant to the chosen media report, and explain how they are relevant to the matters outlined in the report.

An ‘outsider’ is incapable to enforce a right allegedly conferred upon him by the articles. This principle was established in Eley v The Positive Government Security Life Assurance Company, Ltd . According to Section-33, anyone other than the company and the shareholders is an outsider. As the director is an outsider, he shall not be able to enforce that provision in the event that the company declines to comply with it. Also, he will not be rescued by the Contracts (Rights of Third Parties) Act 1999, because the right of enforcement which the Act confers on third parties to contracts is expressly stated not to apply in

There are instances when a director's goal or interest takes precedence, especially when given a position of power. However, with a proper understanding of beliefs and agendas agreed upon the hierarchy of authority final decisions are made. Since directors stay concerned regarding the profit and resource utilisation, it is quite often that sharing of resource within different departments becomes challenging. 80% of the staff in Turner & Townsend are promoted within business appointing "cronies" to positions of authority, regardless of their qualifications. After the acquisition, Thinc director's survival appears to be equated with the ability to play politics. Therefore, this causes director's to be affected and emphasize to others that they are merger