BULAW5915- Corporate Law

REQUIRED:

Complete task a. in A and task b. in B. Each task is worth 50 marks.

A Assume you are invited by Lana to address a Board meeting to talk about options for the company.  Lana asks you to talk about whether any of them may have breached their duties as directors.   a. Write an explanation in preparation for this meeting, setting out what the duties of directors are under s.180(1)of the Corporations Act, explaining  the effect of s.180(2) and assessing whether any of the directors may have breached their duties under this section.   In your answer you should compare their situation to at least two cases you have studied. 

AND B Now assume that Rik, Lana and Patel agree that their only solution to the money problems facing Fruut is to move back to the old premises that are still empty. Lana suggests that the new lease is unenforceable anyway as Rik signed it with his name rather than that of the company.  The agent for Watel Pty Ltd objects, saying that the lease is perfectly valid and enforceable against Fruut.  b.   Explain to Lana, Rik and Patel whether Fruut can be forced to keep  leasing the new premises for the three year term.  In your answer you should compare their situation to at least two cases you have studied.