Reference no: EM132299208 , Length: word count:2700

CORPORATE LAW Assignment - Research Essay

Learning outcomes -

a) Understand the principles of Australian company law within the context of the prescribed readings.

b) Identify and analyse relevant facts, problems and legal issues from a given scenario and develop an argument in response, discussing available options in the context of company law.

c) Interpret company law legislation and relevant case law.

d) Appreciate the role of compliance and the requirement that organisations and individuals must follow the laws that apply to their industry areas.

ASSESSMENT DESCRIPTION -

Students are required to submit a research essay that will focus on one of the topics we covered during term.

Students MUST reference according to the Harvard Referencing Guide (speak to ALS if you need help).

Although students may rely on the class textbook, students MUST include at least two (2) primary legal sources (eg case law, legislation) and at least two (2) secondary sources (eg books, websites, articles in legal journals) that were not found in the textbook

Please DO NOT rely on Wikipedia (that includes... covert attempts to do so).

Please DO visit your local State Library and ask a librarian to help you navigate their online resources and law books.

• NSW State Library: Macquarie Street, Sydney New South Wales 2000
• VIC State Library: 328 Swanston Street, Melbourne Victoria 3000.

CORPORATE LAW ESSAY QUESTION -

In 2010, the five Brown brothers formed a private company called "The Grumpy Grande Pty Ltd" ("TGG"). The business was an instant success and the brothers shared equally in the decision-making and profit sharing.

According to the company constitution:

1. TGG "specialises in bringing premium coffee, brewed fresh from the back of our minivan, straight to your sporting, corporate or social event";

2. The five (5) Brown brothers are the only directors and shareholders;

3. That any of the brothers wishing to sell their shares in the company, can only do so with the permission of the other directors & even then, can only sell his shares internally, to the existing directors;

4. That all business decisions for TGG, must be made by majority vote.

In the last few years however, TGG's business started slowing down, which put great strain on the relationship between the brothers. Suspecting that their youngest brother, Tim, was thinking of resigning, the four (4) oldest brothers began bullying Tim and taking every opportunity to use their majority vote in order to block Tim's business ideas and to sell valuable company assets, at bargain prices, to themselves, despite angry protests from Tim.

One afternoon, Tim overhears his oldest brother talking on the phone and saying: "..not long until we're rid of him guys...just remember, he needs our approval to sell his shares!... so, when he tries to pull his investment out of the company, we can just use our majority vote and prevent him selling his shares... if he's angry enough, he will just walk away from the business and we won't have to pay him out... "

With reference to primary and secondary sources, advise Tim of (a) one Equitable Remedy and (b) one Statutory Remedy available to him to overcome this situation. (Note: Where applicable, you MUST include an explanation of the relevant test used by the court to determine whether Tim is entitled to the remedy).

Note - Outline around 700 words + Assessment is around 2000 total words = 2700.

Attachment:- Assignment Files.rar