Reference no: EM132862811 , Length: word count:6000
HA3021 Corporations Law -Holmes Institute
Assessment - Case Study on Corporations Law
The purpose of the Individual Assignment is to provide students with an opportunity to demonstrate their level of learning of the various key concepts taught in the unit and apply them in analysing and answering two case problems by citing the relevant legal rules and cases and applying these to the facts of the case. In this Individual Assignment, students are required to:
• Reflect critically on the legislation and the relevant case law relating to the different business structures, in particular corporations and partnerships, and apply legal principles to real case situations. (ULO 2)
• Analyse the incorporation process and explain the laws and regulations that govern the different forms of legal entities including the significance of the concept of separate legal entity. (ULO 3)
• Analyse the roles and duties of directors in the management of the company and the and responsibilities of members in a company.
Purpose:
The purpose of the Individual Assignment is to provide students with an opportunity to demonstrate their level of learning of the various key concepts taught in the unit and apply them in analysing and answering two case problems by citing the relevant legal rules and cases and applying these to the facts of the case.
Instructions: Please read and re-read carefully to avoid mistakes.
Individual Report
1. The individual assignment is about business structures and director's duties. There is only one main question to be answered but broken down into four (4) sub-questions.
2. The individual assignment is worth 40% of the total marks in this unit.
3. This individual assignment comprises three separate submissions: an answer plan, an assignment draft and a final assignment. Each submission is worth separate marks.
4. Answer plan: you are required to submit an answer plan, which outlines your answer, including the relevant sections of law and cases that you plan to cite in support of your answer.
? Length: 1,000 words
5. Assignment draft: you are required to follow your answer plan and produce a written draft of your answer. The answer must cite relevant sections of law and cases that you specified in your answer plan. In addition, your draft must include a list of academic references that you have researched for your assignment.
? Length: 2,000 words
6. Final assignment: you are required to submit the final version of your assignment. The final version must include an official Holmes Institute cover sheet, as well as academic referencing (either in- text or footnotes) and a full Reference List.
7. Word count limits are strictly enforced. A deduction of two (2) marks will be imposed for every 50 words over the word count for either part of the report. Anything over the word count will not be read by your lecturer.
8. The total word count for the report must be clearly written on the cover sheet of the assignment. A paper will not be marked if the word counts are not written on the cover sheet.
Individual Oral Presentation
You are required to present your answers in a short oral presentation that will be delivered during the live interactive online tutorials. Presentations will run from Weeks 10 to 13. Your lecturer will schedule the particular tutorial when you will present. Each oral presentation will last for five (5) minutes and will involve you briefly presenting the answer to the question and answering questions posed by your lecturer.
Assignment Question
• There will be four (4) questions in total, which will be released progressively and must be answered according to the following schedule
o Questions 1 and 2: released at the end of Week 2. Answers must be submitted in the Answer Plan.
o Question 3: will be released at the end of Week 5. Answers to Questions 1, 2 and 3 must submitted in the Assignment Draft.
o Question 4: will be released at the end of Week 7. Answers to Answers to Questions 1, 2, 3 and 4 must submitted in the Final Assignment.
• Read Questions 1 and 2 below on Business Structures and plan your answers.
• Prepare an answer plan for your answer. Using your answer plan, you are then required to draft your answer and later finalise your answer.
Congratulations! You have secured a graduate position with a large firm of corporate advisers. Hannah Finley, a partner in the practice, asks you to attend an 10:00 a.m. meeting on Monday with herself and Russel Robbins, a longstanding client of the firm. You will be required to take notes and prepare answers to Russel 's queries.
Russel Robbins is married to Megan Mays. They have one child, Ellie, who attends a local private school. Russel is very entrepreneurial and has been running a second-hand and vintage clothing business in Albury, NSW, by himself as a sole trader for the past five years under the business name of Pinnaclewear. A lot of Russel's customers are other businesses, both local and overseas. Turnover was $285,000 in the first year and has now grown to over $3 million per annum.
The business operates from rented premises, but Russel would prefer to buy a building. Currently, Pinnaclewear employs eight staff. Russel has plans to expand the business further. He also wants to diversify into food and catering in the near to medium term.
Russel's mother, Violet, is a retired accountant and he regularly asks her for advice. Violet suggested recently that Russel should structure his business as a company. Russel is unsure about this. He makes an appointment to see Hannah
Prior to the meeting, you review Russel 's file and note that he and Megan have the following assets.
• A family home in Wodonga with a market value of $1.25 million. There is a mortgage on the property of $561,000. The house is owned by Megan. The house was previously owned by Russel and Megan , but when Russel started up his business, it was decided to transfer the house solely to Megan for asset protection reasons.
• A share portfolio. Russel and Megan jointly own 1000 Telstra shares, which cost them $3.30 per share, and 500 Commonwealth Bank shares, which they bought when they first married. The Commonwealth Bank shares cost them $10.90 per share. The Telstra shares are currently worth $3.09 per share and the Commonwealth Bank shares are worth $61.00 per share. The shares are intended as an investment for Ellie
- they will be given to her when she turns 21. Russel and Megan also jointly own a portfolio of blue chip Australian shares currently valued at $145,957.
• Two motor vehicles. Megan owns a BMW Series 7 worth $135 000. Russel owns a VW Transporter Van worth $18,000, which he uses for the business.
• Office furniture and equipment. During the course of the year, Russel bought computers, desks, other office furniture and shelving for the business which cost him approximately $23 000. Their current value in the financial accounts is $8,650.
• Superannuation. Russel has $190,568 in superannuation and Megan has $136,000 in superannuation.
In addition, Megan works as a sales and marketing manager in the city for a financial services company. She is on a total salary package of $155,000.
At the meeting, Russel hands over last financial year's business results and his draft budget of sales and expenses for the coming financial year. The budget for the new year shows expected sales of $3,764,000 and a net profit of $637,979.
Issues to be considered
During the meeting, Russel has a number of questions relating to important issues surrounding the future of his business. Answer the following questions relating to Russel 's matter:
(1) What options does Russel have to structure the Pinnaclewear business? Name each business structure used in Australia that Russel can choose and then define and describe the basic characteristics of this business structure.
(2) From the facts presented, identify the important issues that will arise as Russel chooses the best type/s of business structure/s and the factors that he will need to consider in choosing the right business structure for his business.
Attachment:- Corporations Law.rar