Subject Code : TLAW402
Country : Australia
TLAW402: Sun and Ray Sunshine Pty Ltd Company Law Assignment Help
Assignment Task:

TLAW 402 COMPANY LAW:

Sun and Ray are the only shareholders and directors of Sunshine Pty Ltd, a very small company with very few assets that operates an outdoor cafe in Burwood, Sydney. Sun and Ray share the management of the company. Sun, an accountant by profession, is the managing director and is solely responsible for the company’s finances. Ray is in charge of the administrative affairs of the business. Three months ago, in June 2019, Sun received a text message from one of the company’s trade suppliers (Good Food Pty Ltd) requesting that an overdue monthly supply account be paid. Ray thought this was very strange because Sun was normally very good at paying the company’s bills on time.
Ray confronted Sun about the overdue payment. Sun said the payment has been made. Sun, who has a bad reputation as a liar, had given false information to Ray. When the director of Good Food Pty Ltd telephoned Ray and demanded payment immediately, Ray realized that the bank balance of Sunshine Pty Ltd was very low and that Sun had not paid this debt. Ray checked the company’s computer and also discovered that Sun had failed to keep financial records since September 2018. Two months ago, in July 2019, Ray tries to use the company’s credit card to withdraw cash but was unsuccessful. The message on the ATM screen said insufficient funds. A month ago, on August 2019, Ray receives a telephone call from the company’s bank manager who tells Ray that the company has now exceeded its $150,000 overdraft and that, for this reason, the bank will no longer honour any payments made by Sunshine Pty Ltd. On 1 September 2019, the court-appointed Mr Moon, a liquidator, to wind up Sunshine Pty Ltd. The liquidator wishes to repay all the creditors Sunshine Pty Ltd, but the company has insufficient funds and assets to make any repayment of debts which now totals more than $350,000.

(a) Advise the Mr Moon, with reference to the relevant law under the Corporations Act 2001 (Cth), as to what legal action he should take against Sun and Ray and what are his chances of success.  And

(b) Assume ASIC, instead of Mr Moon, has taken legal action Sun and Ray for breach of the Corporations Act identified in your answer in part (a). Explain, with reasons, what are the most likely potential legal consequences for Sun and Ray? Your answer must refer to the relevant law under the Corporations Act. 

Requirements for a pass/good mark:
1. A legal analysis of the question with reference to relevant principles of corporations law (case law) and, where appropriate, relevant statutory provisions of the Corporations Act 2001 (Cth).

2. Students are expected to reference the relevant chapters in the prescribed textbook and to draw supporting information from there (Hint: read the relevant parts of Chapter 5 and 18 of your prescribed textbook).

3. You are strongly advised not to use the internet for resource materials (as it is unnecessary and you run the real risk of drawing on irrelevant information and/or foreign law). The Current Edition of your Prescribed Textbook is more than adequate to answer the questions.

4. Students are expected to footnote references1 and to provide a bibliography.

5. Marks will be deducted if the answer does not meet the minimum word count – a word count must be indicated on the cover sheet.

6. Use of margin of 1.5 and font of 12 (Times New Roman] – with answers on single side of each page.

7. A good answer to Question 1 and 2 will do the following (adapt the following structure) with respect to the question:
(a) Identify the material (relevant) facts – and NOT simply repeat the question;
(b) Identify the legal issue (or issues);
(c) Identify the relevant case law;
(d) Apply the legal principles and relevant case law and statute law to the given facts;
(e) Offer legal reasons (with legal authority) as to whether various parties are liable (a simply Yes or No answer with personal views is totally inadequate).

 

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  • Posted on : October 01st, 2018
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