HA3021 Tutorial Questions On Corporations Law - Assignment 2

Get Expert's Help on Assessment Writing

Week 6 - Question 1 (10 marks)

Polyester is a director of Style Pty. Limited involved in making women's clothing.

Situation 1. She arranges with the company's bank to transfer an amount of $65,000 from the company account into a personal bank account held by her in her own name. She uses the funds to finalise some outstanding personal debts.
Situation 2. As a director she receives information that the company is in a serious financial position. She arranges to transfer a larger amount of the assets of the company over a new proprietary company that she formed with the intention of caring on the same business.
Situation 3. Contrary to a resolution of the Board and notwithstanding established business practice that limits credit to $20,000 she allows a trade debtor (who has a history of bad debts) to exceed its credit limits by $25,000. The debtor fails to pay the outstanding amount of $45,000. Can she rely on the business judgment rule in this situation?

Required: Has she breached any duties under the Corporation Act in the three (3) situations listed above?

Expert's Answer

Hire Expert Tutors

Get Professional Tutoring at Low Price in Australia


Professional

Tutoring Services

25,187+

Orders Delivered

4.9/5

5 Star Rating

621

PhD Experts

 

Amazing Features

Plagiarism Free

Top Quality

Best Price

On-Time Delivery

100% Money Back

24 x 7 Support

TOP