Research Essay

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BLW21/MT564 MODULE QUESTIONS Study Period 1 2011 INTRODUCTION It is only possible to cover a limited number of questions in each seminar. The questions are intended to reflect major principles where possible, but in some weeks it has been necessary, due to limited space, to omit questions on important issues. MODULE ONE QUESTION ONE In order to properly work with this unit you need to become proficient in working with the Corporations Act (CA). To commence that process please locate the following references: (a) “Auditors” in the index (b) The definition of “financial records” under CA s9 (c) CA s117 (d) CA s124…show more content…
Julie makes inquiries and discovers that Bob Marley is a close friend of the Indahouse chairperson Al Gee. She also learns that the company’s constitution contains a rule that provides “the chairperson of the company may, as they see fit, order any member to transfer their shares to any person at a fair market price”. Jimmy, another shareholder, discovers that as the company requires more funds the directors plan to issue a parcel of shares to a single investor without the members being able to participate. Julie does not wish to sell her shares. Is she bound to observe the order she has received? Are the directors correct in issuing the shares, as they plan? QUESTION FOUR Spears Ltd has a constitution that does not repeal any of the replaceable rules of the CA but does provide for two additional matters: (i) an objects clause provides that “the company’s activities are restricted to the recording and publishing of music”. (ii) another clause provides: “Jackson White is to be the company's Senior Music Producer at a salary of $200,000 pa”. The directors of Spears Ltd have decided to ignore the constitution and to carry out the following actions: • to execute a contract with Little Brother Pty Ltd for the release of films on DVD •
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