Identify the proceeding and the procedural irregularity

Assignment Help Accounting Basics

Reference no: EM132809616

X was a company director in a large proprietary company of six directors. The company does not have a constitution. X provided 1 day notice of a Board meeting to 3 of the 5 directors. The other 2 directors were overseas. A unanimous resolution was passed at the meeting the following day (X abstained from voting) approving a variation to X's management services contract (worth >$250,000 per year). Included in that variation was a contract extension of 3 years (the contract was originally set to expire two months after the meeting). According to company records, the 2 absent directors attended 40% of Board meetings in the past two years.

The 2 directors returned from overseas, read the contract variation and noted that it was heavily in favour of X - they argued that the contract variation was not valid and the company refused to honour the contract extension. X was then removed as a director at the AGM according to the Corporations Act. X sued for breach of contract at common law and the company made a cross-claim against X under s 1322 CA.

Problem 1: Can the company rely on section 1322? Hint: You need to identify the proceeding, the procedural irregularity (or irregularities - refer to Replaceable Rules) and explain how you would prove substantial injustice (if any) in your answer. Has to be completed in ILAC format

Reference no: EM132809616

Questions Cloud

What additional trends do you foresee : What trends do you see in the SHRM article that will impact the organization you work for and why?

How much is the initial measurement of the equipment receive : Entity A exchanged equiptment with entity B.If the exchange has commercial substance, how much is the initial measurement of the equipment received by Entity b?

Achieve corporate social responsibility : One of the top competitive issues Human Resource Managers may face is setting and achieving corporate social responsibility. A perfect example

Which sources of job satisfaction has datotel addressed : 1. Based on the information given, which sources of job satisfaction has Datotel addressed? What other sources might the company address, and how?

Identify the proceeding and the procedural irregularity : Identify the proceeding, the procedural irregularity (or irregularities - refer to Replaceable Rules) and explain how you would prove substantial injustice

What biblical expressions refer to the return of christ : What Biblical expressions refer to the return of Christ and What lead William Miller to believe that Christ would return around 1843

Was eric a shadow director or de facto director : Was Eric a shadow director or de facto director in the 15 month period prior to administration? Maintained control of marketing and IT departments

Find and prepare the journal entry to record depletion : Riverbed Corporation, a publicly traded mining company, Assuming that 880 tonnes are extracted in the first year, prepare the journal entry to record depletion.

How cash flow statement can evaluate the cash : How cash flow statement can evaluate both the cash and noncash aspects of a company's financing and investing transactions?

User Account

All Pages