Do apollo and rocky have an arguable defence

Assignment Help Business Law and Ethics
Reference no: EM13666139

Question 1

DEF Ltd was incorporated on January 2011 and was floated on the ASX in March 2011, having raised $20 million from investors. The company is primarily involved in mining and exploration activities in the Pilbara region of Western Australia. DEF Ltd have four directors: Apollo, Rocky, Drago and Clubber. Both Apollo and Rocky are executive directors. Rocky is the company's chief executive officer.

Clubber is the company's chair. Drago is the company's chief financial officer. The company began exploration activities in July 2011. After drilling a number of sites, a geological survey was commissioned and the results from the mine wells were tested. The results from the survey reveal that the mining site has low levels of gold deposits and is considered to be uncommercial. The company has already spent $5 million. At a recent meeting, the board considers whether to abandon its mining activities and return the company's remaining capital back to its shareholders. Both Apollo and Rocky are eternal optimists and never know when to quit. They both argue that the company is on the verge of a major discovery and should continue with its exploration activities. Clubber and Drago are less optimistic and suggest that the company's remaining capital should be returned back to investors. To avoid another heated confrontation, they agree with Rocky and Apollo that the company should continue with its drilling program. At the completion of the drilling activities in 2012, all of the company's capital has been exhausted and there have been no major discoveries.

(a) Have Apollo and Rocky breached their directors' duties?

(b) Do Apollo and Rocky have an arguable defence?

(c) Has Clubber, as the company's chair, breached any duties?

(d) Advise whether Drago, as the company's chief financial officer, breached any duties.

Question 2

Citrus Ltd, a gold mining company listed on the ASX, is currently the subject of a hostile takeover from Anglo Brit Ltd. Prior to Anglo Brit's announcement, the market capitalisation of Citrus Ltd is currently $100 million and its pre-takeover share price is $1.00. Anglo Brit has offered $1.20 per share for Citrus, representing a 20% premium. The directors of Citrus Ltd devise an ingenious plan to defeat the takeover. The board manages to convince one of its directors, Mr Lang, to be provided with an interest-free loan worth $20 million. The loan was for the purpose of purchasing shares in Citrus Ltd in order to push up the company's share price. This will mean that Anglo Brit will have to offer more to the Citrus shareholders if they are to successfully take over the company.

(a) Have the directors of Citrus Ltd breached their directors' duties (in particular duty to act for good faith in the best interests of the company and for a proper purpose) in relation to the loan that has been advanced to Lang?

(b) Can Anglo Brit Ltd take legal action against Citrus Ltd in relation to the latter's conduct and tactics concerning the hostile takeover?

Reference no: EM13666139

Previous Q& A

  Think an event with space-time coordinates

Think an event with space-time coordinates t=2.0s x=2.5*10^8 m/s relative to frame S. Discover the value γ that will be required to transform coordinates among frames S and S'. Use c=3*10^8 m/s for the speed of light in vacuum

  Discover momentum and speed of electron whose kinetic energy

Discover the momentum and speed of an electron whose kinetic energy equals its rest energy? The mass of the electron is 789MeV/C^2?

  The force constant of a spring

The force constant of a spring is 800 N/m and the unscratched length is 0.63 m. A 4.6 kg block is suspended from the spring. An external force slowly pulls the block down, until the spring has been stretched to a length of 0.76 m.

  Compute the resistance of an automobile jumper cable

Compute the resistance of an automobile jumper cable. A current is required to start a typical car. What is the potential drop that occurs across the jumper cable? How much power is dissipated in the jumper cable when it carries that current?

  Light of wavelength is incident on a narrow slit

Light of wavelength 605 nm is incident on a narrow slit. The angle among the first diffraction minimum on one side of the central maximum and the first minimum on the other side is 1.26°. What is the width of the slit?

  Compute the impedance of the air conditioner

An air conditioner connected to a 120 V rms ac line is equivalent to a 11.0 resistance and a 1.50 inductive reactance in series. Compute the impedance of the air conditioner. Compute the average rate at which power is supplied to the appliance.

  What is the total force on the bottom of a swimming pool

-What is the total force on the bottom of a swimming pool 13.0 m with 5.8 m whose uniform depth is 1.9 m? What is the absolute pressure on the bottom of a swimming pool? What will be the pressure against the side of the pool near the bottom?

  Car with an initial velocity

A car with an initial velocity of 3.5 m/s coasts with the engine off and the transmission in neutral. If the combined effect of air resistance and rolling friction causes a deceleration of0.50 m/s2, after how long of a time will the car come to a sto..

  Discover the magnitude and direction of the current in loop

A circular loop of wire of radius r = 0.32 m and resistance R=2.5ohms is placed in a uniform magnetic field that is perpendicular to the plane of the loop and initially directed in to the page. The field varies with time as Bz = -4T - (5.6 T/S )t +(2..

  Decide the maximum speed of the object

A 0.54 kg object connected to a light spring with a force constant of 18.2N/m oscillates on a frictionless horizontal surface. If the spring is compressed 4.0 cm and released from rest. Decide the maximum speed of the object.

Reviews

Write a Review

 

Similar Q& A

  How is the epa classified as a governmental agency how is

how is the epa classified as a governmental agency? how is it that the epa can set administer and enforce

  Define the principles of risk management that apply to the

as a new security manager for a retail operation you have been asked to create a new loss prevention and risk

  History of prison developmentcomparison of the pennsylvania

write a 700- to 1050-word paper that examines the purpose and history of penitentiaries. include the following history

  Why would a tax practitioner need to document

Why would a tax practitioner need to document their tax research? When would tax research need to be produced? Is it better to prepare research proactively or reactively?

  Trace evidence is often the key to an investigation and

trace evidence is often the key to an investigation and may be your only evidence. it is critical to understand what

  The paper must be one to two pages not including the title

the paper must be one to two pages not including the title and reference pages and formatted according to apa style

  In a criminal proceeding what is the difference between an

1. the basic objective of the u.s. market-directed economic system is toa. minimize inflation.b. achieve an annual

  A claim is filed by the defendant against the plaintiff

1. the focus in civil litigation is toa. punish the wrongdoer.b. compensate the victim.c. deter future wrongdoing.d.

  What techniques will be used to train officers in

you have been advised by the warden that the agency is going to seek national accreditation by the aca and that he has

  Drug courts are a relatively new phenomenon in the american

discuss the three types of management styles that are reviewed in your course materials scientific management human

  You are thinking of staring your own company providing

you are thinking of staring your own company providing consulting services. you are married with two children. your

  Oe of the problems that you will face in the real world

one of the problems that you will face in the real world is that of public perception of rehabilitation and community

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