Company Law INFORMATION ABOUT WRITING THE ASSIGNMENT (TO STAY WITHIN THE WORD LIMIT) Footnotes do not count towards the word limit3000. Footnotes...

Company Law

INFORMATION ABOUT WRITING THE ASSIGNMENT

(TO STAY WITHIN THE WORD LIMIT)

Footnotes do not count towards the word limit3000. Footnotes cannot contain substantive arguments. Arguments should be in the body of the text. Footnotes should only be used for citations of cases and other reference materials. Any referencing method may be used. You may refer to a case by a short form such as "Saloman" in the body of the text but you must provide a full citation in the footnotes. The citation must state the FULL name of the case together with where the case may be found in the Law Reports. Use of a short form name in the body of the text will save words and thereby help you to stay within the word limit.

The IRAC method traditionally used to answer Law questions is as follows:

IState the Issue;

RState the Relevant law;

A Apply the Relevant Law to the facts; and

C State the Conclusion.

However, following this method strictly requires both steps R and A to be carried outseparately - there should be a description of the Relevant Law and then under step A, there should be application of the Relevant Law to the facts. This can sometimes result in duplication.

Because of the word limit, I would recommend that you combine steps R and A together. Below I have given you two examples.

First example where there is a breach:

"The issue is whether the promoter has breached his duties to the company. The duty of disclosure has been breached because of the failure to disclose to an independent Board: as illustrated in Gluckstein."

Second example where there is no breach you can answer as follows:

"Unlike Gluckstein, there was no breach as he had disclosed his interest to an independent Board."

Both these paragraph show you know the relevant Law and how to apply the law from thatcase, but obviously the 2nd paragraph is much more concise.

TAKE HOME ASSIGNMENT QUESTION

Carborundum Pty Ltd (Carborundum) is a company that was incorporated in July 2014. The main business of the company is the manufacture of drilling machinery for the mining industry. The company has issued 50,000 $ 1 shares as follows: Alan, Ben, Colin and Eric Sanders have 4,000 shares each; Donald Thump, a wealthy industrialist, has 12,000 shares; and the remaining 22,000 issued shares are owned by a company called Inventions Pty Ltd("Inventions"). The directors and shareholders of Inventions are Hilary and Bill Winton. The Carborundum shares held by Alan, Ben and Colin are fully paid up, whilst the rest of the issued Carborundum shares are paid up only to the extent of one cent per share.

Hilary is the managing director of Carborundum and she is also its chief engineer. The other directors are Ben and Colin. Colin is the Chairman of the Board. Alan is the Company Secretary for Carborundum.

Carborundum's Constitution states, inter alia:

"Clause 3. The sole objects of the company shall be to manufacture of drilling machinery.