COMPANIES & PARTNERSHIP LAW – Cheap Research Essays

COMPANIES & PARTNERSHIP LAW ASSIGNMENT 2, 2015

Maximum 1,250 words
Value – 15% of overall assessment for the course
This assignment assesses the following course objectives:
CO1. Demonstrate a detailed knowledge of the law of corporations, demonstrated
through the ability to identify and explain the key principles within the area.
CO3. Develop clarity of thought, critical analytical reasoning, and problem-solving and
communication skills in written context.
Use the template provided on the website to analyse the following scenario and
submit it via Gradebook.
You can use Harvard or AGLC referencing. You can find a link for information on
both here www.unisa.edu.au/Referencing
Penalty for late submissions = 10% (-10 MARKS) PER EACH DAY LATE eg score
60% but 1 day late = final result of 50%.
Please note ‘traffic jams’ sometimes happen with Gradebook close to the closing
time and prevent submissions, making them late. You are advised to submit well
within time.
When you submit, Turnitin automatically generates a similarity report which is
used to report students to the Academic Integrity Officer. You are advised to take
note of any high percentages and to make sure you have not plagiarized by
referencing appropriately. About 30% of this report will be due to use of the
template which includes the cover sheet. If submitting early to check the report, you
can resubmit but be sure to use the same file name.

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QUESTION 1 (worth 25% of this assignment)
Section 131 Corporations Act 2001 (Cth) was included in the Act to overcome previous
problems in the law. In your own words, in approximately 300 words, explain 2 points
about the legal significance of this section.

QUESTION 2 (worth 75% of this assignment)
John, Paul and George have formed a syndicate with the purpose of forming a company
to develop some land into a small amusement park. They spend considerable time and
effort to find the right location and eventually buy some land. Soon after buying the land,
but before the company is registered they have an opportunity to buy $100,000 worth of
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equipment for the park from Ringo who is offering it at a special low price because he
needs to secure a quick sale.
At the time that the contract for the equipment needs to be signed, Paul is overseas on a
private business trip so the contract is signed by John and George “On behalf of Happy
Park Company Ltd” which is the name they intend to use for the company. Final
payment for the contract is set for two month’s time. Although nothing is said in the
contract about it everyone involved expects the Company to be registered by that time.
Within the next month John and George register the company and since Paul is still away
he is not involved. When they go to register the name they find that it is not available so
they decide to register the company as “Funtime Company Limited.” All three are
nominated as directors of the company on the registration documents.
Following registration the syndicate sells the land to the company and as directors of the
company, John, Paul and George approve of the contract for the land. However since
their purchase, the value of the land has dropped considerably due to the owner of the
adjacent land having been given permission to use it as a rubbish dump. The syndicate
being aware they could not afford to make a personal loss, added 5% to the price they
paid for the land. They disclosed this addition in the board of directors’ minutes,
considering it to be a reasonable profit for their efforts of finding the land.
A number of disputes occur between the three including a dispute about the ratification of
the contract for the equipment. Paul had returned the week after the company was
registered, and at the first meeting of the board he told them he wanted nothing more to
do with the equipment because he thought the equipment was “a load of old rubbish.”
When the time comes to exchange the equipment for payment, Ringo wants specific
performance of the sale but John and George refuse, claiming the company has not yet
raised sufficient funds and Paul claims it no longer has anything to do with him. They
tell Ringo he will simply have to sell the equipment to someone else. Ringo refuses
telling them he will take legal action against them.