BLAW 2006 University of Sydney Company Law for Business Questions

This is purely a case study practice test and no answers will be provided to students, nor willthe case study practice test be marked. The time allowed to complete the test is
120 minutes. The actual case study test will have four problem questions, which require you
to answer, using the 4-step process.
It is also important that you sit the case study practice test, as it will allow you to set up
IRIS (Intelligent Remote Invigilation System) and ensure that you have everything set for
the actual case study test.
Question 1
If a shareholder owns 10% of the shares in a company, does that give the
shareholder a 10% interest in the company’s assets?
As a guide, you should take approximately 4 minutes to answer this question.
Type your answer to Question 1 below:
Question 2
The role of ASIC only extends over companies. Discuss the correctness of this
statement and whether ASIC can bring an action against companies who breach the
Corporations Act.
As a guide, you should take approximately 4 minutes to answer this question.
Type your answer to Question 2 below:
Question 3
Mick and Jag decide to go into business together, manufacturing and selling
lipstick. Discuss the different types of companies they are able to register under
the Corporations Act 2001 (Cth) and what does the difference signify.
As a guide, you should take approximately 7 minutes to answer this question.
Refer to the relevant sections of the Corporations Act 2001 (Cth) where possible and quote relevant cases
where possible.
Type your answer to Question 3 below:
Question 4
Give an example of a case where the courts have pierced the corporate veil.
As a guide, you should take approximately 7 minutes to answer this question.
As a guide, you should take approximately 7 minutes to answer this question.
Refer to the relevant sections of the Corporations Act 2001 (Cth) where possible and quote relevant cases
where possible.
Type your answer to Question 4 below:
Question 5
Toby would like to purchase partly paid shares in a mining company. He is confused
as to the differences between mining companies whose name ends with Pty Ltd from
a mining company whose name ends with NL.
Please explain to Toby at least three key differences between a Pty and an NL
company. Also, explain to Toby what the letters NL and Pty Ltd signal to a potential
creditor.
As a guide, you should take approximately 15 minutes to answer this question.
Refer to the relevant sections of the Corporations Act 2001 (Cth) where possible and quote relevant cases where
possible.
Type your answer to Question 5 below:
Question 6
Gold NL has a constitution that does not repeal any of the replaceable rules of
the Corporations Act but does provide for one additional matter:
An objects clause provides that “the company’s activities are restricted to
the exploration and extraction of gold”.
The directors of Gold NL have decided to operate a holiday resort near its gold
mines in outback Australia and to that end Mark Reckless has entered into a
contract with Caravan Pty Ltd for the purchase of 10 mobile homes for $1million in
to provide accommodation for guests staying at the holiday resort. The other
directors do not like the mobile homes manufactured by Caravan Pty Ltd and they
refuse to accept delivery of the mobile homes on the grounds that:
The company has no legal capacity to operate a holiday resort and that
Caravan Pty Ltd would have known this limitation from its name.
Advise Caravan Pty Ltd whether Gold NL can refuses to accept delivery of the
mobile homes on the ground that it has no legal capacity to operate a holiday resort
and that Caravan Pty Ltd would have known this limitation from its name.
As a guide, you should take approximately 30 minutes to answer this question.
Refer to the relevant sections of the Corporations Act 2001 (Cth) where possible and quote relevant cases where
possible.
Type your answer to Question 6 below:
Question 7
Harry Bloggs commences a business of selling hamburgers and operates under a
business name Harry’s Hamburgers. What happens if Harry’s Hamburgers cannot
pay for the ingredients?
As a guide, you should take approximately 7 minutes to answer this question.
Refer to the relevant sections of the Corporations Act 2001 (Cth) where possible and quote relevant cases where
possible.
Type your answer to Question 7 below: