Free Samples
LEGL201 Company Law
.cms-body-content table{width:100%!important;} #subhidecontent{ position: relative;
overflow-x: auto;
width: 100%;}
LEGL201 Company Law
0 Download3 Pages / 598 Words
Course Code: LEGL201
University: Australian Catholic University
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Question:
Discuss about the Australian Corporate Law for Trump Development.
Answer:
Trump Development limited Company has breached its constitution by borrowing money to expand its operations from overseas financial institutions against the company’s constitution provisions that requires it to source financing from the Approved Australian Financial Institutions. It is important to note that the company has 4 directors whereby the majority 3 directors are keen to expand the company’s portfolio to include Casino developments in Caribbean, Atlantic City and Las Vegas. The company’s constitution allows the minority shareholders in a company to negotiate their terms of relationship with the others as well as to protect their interests. In this particular case, a more conservative director Hillary was not in agreement with the other three Big Donald, Little Marco and Bernie to deviate from Core Company’s objective of developing residential properties in Sydney Melbourne and other capital cities.
Article 141 of the Australian Corporations Act, states that a company’s constitution is clear and supreme than the replaceable rules because it provides the framework through which the management of the affair of the company are anchored[1]. Replaceable rules can be enacted by majority of the shareholders in the interest of the company but should not violate the constitution[2]. In this particular case, one of the non-executive directors Slick Willy flouted the provisions of the company’s constitution by seeking funding from overseas financial institutions to enhance expansion of Trump Development Limited into casino markets which terrible failed as a result of capital exhaustion. As a result the company ended up experiencing cost overruns in building the casinos therefore limit its capacity to continue its core operations in the real estate sector.
Directors have the duty to act in the interest of the company by engaging in actions that benefit the shareholders. They also have a duty to avoid a conflict of interest by engaging in transactions for the sole purpose of improving the prospects of the company[3]. Looking at this particular case, the three directors were acting in the interest of the company by expanding the company’s portfolio to include casinos because that would earn Trump development more revenues and profits. It is important to acknowledge that the company’s constitution generally specifies the rules that govern the activities if the company, its directors and shareholders.
The corporations Act does not prescribe the rules that must be incorporated in companies’ constitutions. On that regard, the company through its directors can choose to modify the provisions of the constitution through replaceable rules. This is done through a vote by the directors and each of their votes carries equal vote[4]. The majority are supposed to pass any constitutional amendment resolution. In this case, if the three directors amended the company’s constitution regarding the financing of companies operation to include overseas financial institutions, then they will not have violated the constitution and neither have they violated the Australian corporations Ac. Once it has been proved that the directors were acting in the best interest of the company, the resultant liabilities cannot be blamed on the company because they took an investment risk whose outcome can either be positive or negative.
Bibliography
Australia. Australian Corporations & Securities Legislation 2011: Corporations Act 2001, ASIC Act 2001, related regulations. Sydney: CCH Australia Limited, 2011.
Cassidy, Julie. Concise Corporations Law. St, Leichhardt NSW: Federation Press, 2006.
—. Corporations Law: Text and Essential Cases. St, Leichhardt NSW : Federation Press , 2013.
Roman Tomasic, Stephen Bottomley, Rob McQueen. Corporations Law in Australia. St, Leichhardt NSW: Federation Press, 2002.
Free Membership to World’s Largest Sample Bank
To View this & another 50000+ free samples. Please put
your valid email id.
Yes, alert me for offers and important updates
Submit
Download Sample Now
Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.
UploadUnique Document
DocumentUnder Evaluation
Get Moneyinto Your Wallet
Total 3 pages
PAY 2 USD TO DOWNLOAD
*The content must not be available online or in our existing Database to qualify as
unique.
Cite This Work
To export a reference to this article please select a referencing stye below:
APA
MLA
Harvard
OSCOLA
Vancouver
My Assignment Help. (2018). LEGL201 Company Law. Retrieved from https://myassignmenthelp.com/free-samples/australian-corporate-law-trump-development.
“LEGL201 Company Law.” My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/australian-corporate-law-trump-development.
My Assignment Help (2018) LEGL201 Company Law [Online]. Available from: https://myassignmenthelp.com/free-samples/australian-corporate-law-trump-development[Accessed 19 December 2021].
My Assignment Help. ‘LEGL201 Company Law’ (My Assignment Help, 2018)
My Assignment Help. LEGL201 Company Law [Internet]. My Assignment Help. 2018 [cited 19 December 2021]. Available from: https://myassignmenthelp.com/free-samples/australian-corporate-law-trump-development.
×
.close{position: absolute;right: 5px;z-index: 999;opacity: 1;color: #ff8b00;}
×
Thank you for your interest
The respective sample has been mail to your register email id
×
CONGRATS!
$20 Credited
successfully in your wallet.
* $5 to be used on order value more than $50. Valid for
only 1
month.
Account created successfully!
We have sent login details on your registered email.
User:
Password:
MyAssignmenthelp.com provides guaranteed satisfaction with a commitment to complete the work within time. Combined with our meticulous work ethics and extensive domain experience, MyAssignmenthelp.com is the ideal partner for all your homework/assignment needs. We pledge to provide 24*7 support to dissolve all your academic doubts. We are composed of 3000+ esteemed experts who have been empanelled after extensive research and quality check. MyAssignmenthelp.com provides undivided attention to each assignment order with a methodical approach to solution. Our network span is not restricted to US, UK and Australia rather extends to countries like Singapore, Canada and UAE. Our assignment help services include thesis help, case study help, homework help, coursework help, MBA help and Programming help. Get your work done at the best price in industry.
Latest Business Law Samples
div#loaddata .card img {max-width: 100%;
}
BU1112 Business Law
Download :
0 | Pages :
6
Course Code: BU1112
University: James Cook University
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answer:
Part A
Issue:
Whether Stella is considered as an employee of PRX?
Rule:
The main difference between employee and independent contractor is stated below:
Employee entered into contract of service, but contractor entered into contract for services.
Employer exercise control over the employee but no control was exercised by employer on contractor. It is considered as traditional test which was developed in Zuijs v Wirth Bros(Zuijs…
Read
More
Tags:
Australia South Lake Management health finance management University of New South Wales
BSBWHS605 Develop Implement And Maintain WHS Management Systems
Download :
0 | Pages :
15
Course Code: BSBWHS605
University: Swinburne University Of Technology
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answers:
Work Health and Safety Management System (WHSMS) is a collection of plans, tools, activities and processes. List 3 of these plans, tools, activities or processes and explain what they are,
The means, nitty gritty beneath, can be utilized whether the arranging procedure is straightforward or complex. They are:
Evaluating the current word related to wellbeing and security status including the ‘administration framework’ Lussier, R. N…
Read
More
Tags:
Australia Brisbane Management Work Health and Safety Management System (WHSMS University of Brisbane MBA
BUSN331 Business Law
Download :
0 | Pages :
3
Course Code: BUSN331
University: Centennial College
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Canada
Answers:
Introduction
In Alberta, the Residential Tenancies Act applies to all the people in this jurisdiction, who rent their space out (Alberta Queen’s Printer, 2016). Through this act, the rights and responsibilities of the landlords and tenants are brought forward (Landlord and Tenant, 2015).
Question 1
Before a tenant can move in the rented accommodation, the tenant and the landlord have to reach an agreement, with regards to the…
Read
More
Tags:
Australia Edmonton Humanities Management University of New South Wales Masters in Business Administration
LA1040 Contract Law
Download :
0 | Pages :
11
Course Code: LA1040
University: University Of London
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: United Kingdom
Answer:
Introduction
A contract is an agreement between the parties which is enforceable legally in the courts. There are several provisions of law which governs how the terms related to the contract would operate. A contract consists of a set of provisions which are known as contractual terms. The weightage of such terms are not equal as one term may have a more significant consequence as compared to the other in relation to their brea…
Read
More
Tags:
United Kingdom London Economics Management University of London
TLAW202 Corporations Law
Download :
0 | Pages :
9
Course Code: TLAW202
University: Top Education Institute
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answers:
1.
If any person wants to carry out his business in the form of a company, then, it is necessary that the registration or incorporation requirements of such country must be met. In Australia, the Corporation Act 2001 and the guidelines laid down by ASIC provides with the steps that must be accomplish in order to establish a corporate entity. (Malbon & Bishop, 2006).
A company is of great significance as it is treated as a …
Read
More
Next