Have the directors of blue mine breached their duty

Assignment Help Business Law and Ethics
Reference no: EM131027683

Question:

Please answer properly.

Seminar Problem Set

Topic: Directors duties and the regulation of corporate governance

NB As for most of the problem sets, the set questions this week relate to the companies described in the case-studies set out in [26-001]-[26-080] of CACL (see pages 565-569 of the 2016 edition). For some of the questions you need to be familiar with the information on those pages in order to answer the questions.

1. The failed investment in JV Mine is having a negative impact on GML's financial position. Although Blue Mine Pty Ltd is currently less profitable than it has been in the past, it still has some cash reserves available. To smooth over the current difficulties at GML, Blue Mine makes an unsecured loan of $5,000,000 to GML. Have the directors of Blue Mine breached their duty to exercise their powers and discharge their duties in the interests of Blue Mine? Would your answer be different if Blue Mine's constitution included a provision reflecting s187 of the Corporations Act?

- Adapted from CACL Problem Set 7 [26-400]: Question 2
- Reading: See particularly [13-120], s181 and s187 of the Corporations Act and Equiticorp Finance Ltd (in liq) v Bank of New Zealand

2. XYZ Ltd buys an additional 17.5 million shares in GML, thus increasing its stake in GML to 16%. XYZ's major shareholder, Mr Wu, is also elected to the board of GML at a general meeting. Mr Addis and Mr East become concerned that XYZ Limited may be planning to purchase more shares in GML and that they might end up frozen out of the business they started. For some time, Mr East has been in discussion with another mining industry figure about a highly prospective gold field near GML's mine in the mid-north of Western Australia. East suggests to Addis that GML issue 10,000,000 shares to this person as a means of creating ties with GML that might help it to secure access to the field in the future. Addis and East bring the proposal to the GML board. Mr Xu is furious as he sees it as a ploy to further entrench their control of the company, by putting shares in the hands of a person who is likely to support Addis and East in the future. If the share issue goes ahead, have the directors breached their duty to exercise their powers for a proper purpose?

- Adapted from CACL Problem Set 7 [26-400]: Question 3
- Reading: See particularly [13-200] and s181 of the Corporations Act.

3. For many years, FWPL has had a transport and logistics contract with a company called BigTrucks. That contract is due for renegotiation. Peter O'Donnell, who is a director of FWPL, owns RiverTrans Pty Ltd. He would like RiverTrans to tender for FWPL's transport and logistics business. Advise Peter and the FWPL board on what is required when a company controlled by a director of a proprietary company enters into a contract with that proprietary company.

- CACL Problem Set 7 [26-400]: Question 4
- Reading: See particularly [14-140], [14-200] and [14-320] and ss191 and 194 of the Corporations Act
- NB Although you are not required to write about this before the class, if we get time, in class we will also discuss how the requirements would differ if FWPL was a public company rather than a proprietary company.

4. Pia Galli attends a wine industry conference at which she meets an agricultural scientist who is working on a process to extract value from the waste products of winemaking. The scientist is very keen to enter into a joint venture with a significant wine producer to test and hopefully commercialise the technology. At Pia's suggestion, the scientist prepares a proposal and presents it to the board of FWPL. FWPL is impressed by the technology and the opportunity it presents for the business, but because of the significant investment it is making in the organic vineyard at Robinvale, is not in a position to take it up. After the meeting, Pia phones the scientist and says that she would like to invest her own money in the project. Pia does not tell her fellow FWPL directors of her decision. Is Pia allowed to make the investment?

- CACL Problem Set 7 [26-400]: Question 5
- Reading: See particularly See [14-160] and [14-360], s182 of the Corporations Act and Regal (Hastings) Ltd v Gulliver.

Reference no: EM131027683

Questions Cloud

Wal-mart for state income taxes : Richard and Mary paid property taxes of $2,900 and their home which is assessed at $115,000. Richard had $900 withheld from his pension and $0 from Wal-Mart for state income taxes. Mary did not have any funds withheld from her IRA distribution for..
Weighted average cost of capital : A firm has a total value of $500,000 and debt valued at $300,000. What is the weighted average cost of capital if the after tax cost of debt is 9% and the cost of equity is 14%?
What the term hidden curriculum refers to : First: briefly describe, in your own words, what the term hidden curriculum refers to. This can be just a couple of sentences, but make sure I can tell you understand the concept
Define in your own words the profession of psychology : Define in your own words "the profession of psychology" and "professional practice." Summarize briefly for yourself the main ethical standards appropriate to the practice of Organizational Psychology and Development (OPD)
Have the directors of blue mine breached their duty : Have the directors of Blue Mine breached their duty to exercise their powers and discharge their duties in the interests of Blue Mine? Would your answer be different if Blue Mine's constitution included a provision reflecting s187 of the Corporati..
Show that a is real for any natural n : Show that for n=3K where K is a natural number, A=2
What do u believe on lalo that made his music so influence : What do u believe it's about Lalo that made his music so influence and revenant to Chicano community?
Why can we say that technological innovation was significant : Why can we say that technological innovation was just as significant in building American cities as it was in driving American industrialization?
Deduce a number which is greater than or equal to the error : Let f be a function which can be differentiated four times on an interval [a,b].Let . Using x, show that the integral f can be calculated on [a,b] with the help of an integral on [-1,1].

Reviews

Write a Review

 

Business Law and Ethics Questions & Answers

  Describe the 3 branches of the us federal government

address the following in 750-1000 words describe the 3 branches of the u.s. federal government. explain the role of

  Describe the relationship between ethics and justice

Describe the relationship between ethics and justice. Please give at least two examples in your answer

  Having an understanding of crime is part of being able to

having an understanding of crime is part of being able to effectively respond to this phenomenon. in this assignment

  Importance of informed financial decisions

Create a matrix identifying the roles, expenditures, and revenue for the federal, state, and local levels of government. Importance of informed financial decisions

  Cause a fraudulent misrepresentation to occur

Describe the type of things the wrongdoer would say, do or not do that would cause a fraudulent misrepresentation to occur. Provide a factual example for each of the examples that you list

  Discuss in detail the goals of penology theory

Assignment: Centervale State Penitentiary Management of Prison Violence, Define and discuss in detail the goals of penology theory and integrate the discussion with the overarching goal of prison management and leadership

  Explain who makes up the y generation

Who are the baby boomers? Who makes up the Y Generation? How are the individuals entering the workforce different from the supervisors? Why is this important to know

  How that particular program might influence youth

Select one of those three and write a 1-2 page paper on how that particular program might influence youth in either a good or bad way

  Discuss the process in which the change will occur

This week's discussion will focus on organizational change in a criminal justice organization. Your task is to identify a reason to necessitate change in the criminal justice organization of your choice (police, courts corrections, etc.) and disc..

  Advance directives are defined by your readings as written

advance directives are defined by your readings as written instructions recognized under state law such as living

  Define crime its relationship to the law and the two most

write a 800 -word paper that includes the followingdefine crime its relationship to the law and the two most common

  Discuss ways in which law effectuates social change

Discuss the essentials ways in which the law effectuates social change in American society through judicial activism. Provide a rationale for the response

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