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Company Law for Business 266

TUTORIAL QUESTIONS

TUTORIAL ONE (TOPIC 1)

QUESTION ONE

Write a brief history of the development of company law and administration in Australia.

QUESTION TWO

ABC Insurance Ltd has received an application from Curtin Pty Ltd to take out an insurance policy covering the motor vehicles driven by the employees of Curtin Pty Ltd.

Explain whether a company has the legal capacity to:

(i) own assets (such as motor vehicles);

(ii) enter into a contract (such as an insurance policy);

(iii) employ people.

QUESTION THREE

Premium Plumbing Pty Ltd (Premium) required further capital for expansion and borrowed $200,000 from Eastpac Bank Ltd (Eastpac). After a time, an unpredictable misfortune occurred causing Premium to suffer a large loss. It immediately advised Eastpac and stopped trading. Premium is unable to meet the repayments due on its bank loan and has few assets. Eastpac is considering ways to recover its money.

Would Eastpac Bank Ltd be successful in enforcing its claim against any of the following:

(i) the directors;

(ii) the shareholders; or

(iii) the employees of Premium Plumbing Pty Ltd?

[Discuss sections and cases to support your opinion]

QUESTION FOUR

Employment opportunities are advertised by the Australian Securities and Investments Commission. Having worked as an auditor and in the finance industry, Rodney Paddler is considering applying for a position. However, he is concerned that his prior experience might not be suitable.

Examine the role and general powers of ASIC to determine if someone with Rodney’s experience might be a suitable candidate.