Advise sarah whether she can collect damages from company

Assignment Help Business Law and Ethics
Reference no: EM131037580 , Length: word count:1000

Company Law Individual Assignment -

Aussies Mines Ltd has decided to expand, despite recent financial difficulties. The board of directors decides to issue $5million worth of shares in the company to fund the expansion. The following share issues are proposed:

(a) $1 million dollars worth of shares will be offered to one large institutional investor

(b) $1 million dollars worth of shares will be offered to company employees

(c) the balance of $3 million dollars worth of shares will be available for purchase through the Australian Stock Exchange.

Part A - Five months after Sarah purchased $20,000 shares in the company, she discovers that the information she based her decision to invest upon was incorrect. She based her decision to purchase shares on the company's previous year's profit figures. However the auditor made an error in the preparation of these figures for the company and the profit was overstated by 50%. She comes to you for advise. Advise Sarah whether she can collect damages from the company and/or the auditor.

Part B - Will is a minority shareholder of Aussie Mines Ltd. He comes to you and complains that the directors have sold company assets and have used the proceeds from the sale to purchase an island resort in their own names. He also tells you that the directors are the controlling shareholders of the company and they have ratified their own acts at a recent general meeting. Advise Will, who wants to initiate an action against the directors.

Reference no: EM131037580

Questions Cloud

Identify the currencies of india and provide the spot price : Discuss strategies for protecting your business from risks related to currency fluctuation - Discuss your proposed Human Resources Management or staffing strategy for your business.
Leadership competence with appropriate femaleness : Women are faced with the problem of needing to bolster their leadership competence with appropriate "femaleness": Adopting behaviors such as individualized consideration and inspirational motivation is a promising approach to overcome these biased..
How much energy is stored in the flywheel : how much energy is stored in the flywheel at the end of 20 seconds?
The case of a differential amplifier : Modify Eq. (9.114) for the case of a differential amplifier having a resistance RE connected in the emitter of each transistor. Let the bias current source be I
Advise sarah whether she can collect damages from company : Aussies Mines Ltd has decided to expand, despite recent financial difficulties. The board of directors decides to issue $5million worth of shares in the company to fund the expansion. Advise Sarah whether she can collect damages from the company an..
Create a detailed management plan for patient data privacy : On numerous occasions, personnel working late have observed the cleaning staff reading discarded printouts. What actions, if any, should these personnel take toward the actions of the cleaning staff? What actions, if any, should be taken by the in..
How many molecules are produced : A reaction produces 0.871of H2O. How many molecules are produced
Calculate the rydberg constant r : difference betweenthe first of the longest wavelength lines of balmer and lyman seriies equal to 133.7 nm
What are the advantages of the eftps : What are the advantages of the EFTPS? How is self-employment income treated differently than income earned when you work for an employer? How do you report self-employment income?

Reviews

Write a Review

 

Business Law and Ethics Questions & Answers

  Write paper on burning of a cross

Please discuss in a 4-5 page paper one of the following topics: The act of flag burning, Protesting and Burning of a Cross

  Select a high profile criminal defendant share a brief

select a high profile criminal defendant. share a brief summary of the facts and the criminal proceedings. for example

  What are the possible repercussions from a crime fighting

What are the possible repercussions from a crime fighting, public safety perspective of not investing in available new technologies being prominently employed in other local law enforcement agencies

  What is a patent

In your own words, what is a patent? Of what value is a patent to an entrepreneur? What benefits does it provide? What are four basic rules entrepreneurs should remember about securing a patent? In your own words, what is a copyright? What benefit..

  Research a law enforcement agency and a non-law enforcement

research a law enforcement agency and a non-law enforcement agency that have responded to an incidentdisaster. please

  Should social justice concepts of dealing with juveniles

How is the right adjusted to accommodate for juveniles? Why do juveniles have a modified right compared to adults? How do these modifications change the roles and priorities of police when dealing with juveniles? Should social justice concepts of ..

  What is law enforcements role in making dna testing

instructors comment the assignment should include information on dna evidence. conduct some research to dna evidence

  Impact both risk identification and analysis

Considering the context as described above, how do organizations - in terms of culture, structure, and traditional ways of doing things (processes), impact both risk identification and analysis (RIA) and effective decision-making

  Foreign sovereign immunities act

Which of the following is provided under the Foreign Sovereign Immunities Act

  The role of a correctional officer

The role of a correctional officer takes many paths and presents many situations. Near the top of the list is safety, regardless of where the officer is working

  What is turpels primary critique of the charter

What is Turpel's primary critique of the Charter? What is the role of a legislative preamble? What is problematic about the preamble to the Charter

  Floor or on low-level brackets in the lounge

Eight surround-sound speakers which had rested on the floor or on low-level brackets in the lounge. These had been described as "bringing cinema quality sound to the comfort of your own lounge".

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd