LAWS3100 Corporations Law

Your take home exam must be uploaded to Blackboard in the required format by the above date and time or marks will be deducted as per the policy stated in the ECP. nMarks will be awarded for:

Identification of the issues raised by the question;
Application of the relevant law, i.e. legislation and cases to the material facts;
Reference to relevant literature and other legal materials;
Coherence and persuasiveness of argument or line of reasoning leading to a conclusion; and
Structure, flow and stylistic competence.

Question 1

Wallace and Basher approach the firm where you work and ask for advice under the Corporations Act 2001 (Cth). Basher feels unfairly treated and Wallace feels oppressed and ripped off. Using the IRAC method, please provide them a letter of advice focusing exclusively on legal options that are sourced in the Corporations Act 2001 (Cth).

Question 2

In 2015 DGD had purchased a large piece of land in Cairns (North Queensland) from a failing land speculator for $5 million. The speculator had obtained approval to develop the land but then been unable to develop the land as there was an adverse environmental ruling. Dan and Gerry backed themselves and purchased this land and several neighbouring blocks for a further $5 million. This was a good price even if the land was not developed. If the land development approval went ahead, then the price of the land would increase around 40%. If DGD went ahead and developed the land then the profits would be far greater.

Dan and Gerry set about trying to have the environmental restriction lifted. On 3 May 2018 DGD received a letter saying the development approval could progress and all restrictions were lifted. On receiving this notice, Cass and Barry commence reviewing the work Dan and Gerry had done on how the land could be developed, as well as exploring other options. They decide to inform the other directors of the positive outcome in a detailed report that they should have ready by 10 May.

Question 2 continued next page

Unbeknown to the other directors of DGD, on 4 May the Queensland Police Service execute a warrant on Basher’s business and residential premises and take computers, documents, money and some personal items. On 5 May Basher is charged with a range of criminal offences, including fraud, extortion and theft and is released on bail. On 6 May Basher advises the other directors of DGD of his situation. 2 hours later Eric and Paul jointly move that an extraordinary general meeting is held of DGD on 28 May at which a motion is put to amend the constitution to empower the other DGD shareholders to forcibly purchase Basher’s shares at the March 2018 independent evaluation price that Wallace sold his shares at. Cass and Barry come to your firm seeking advice on their legal position based upon the facts given under the heading “Question 2”. Using IRAC, please analyse legal issues that arise under the general law. The term “general law” is used in this question in the same way used throughout the prescribed text for LAWS3100. HRS divides law by reference to laws found in the Corporations Act 2001 (Cth) and laws that are not. Laws that are not found in the Corporations Act 2001 (Cth) are referred in the HRS text as laws coming within the general law. So common law, equity, the law of contract etc are all within the term “general law” in the text and for this question.