LAWS2301 FINAL EXAM NOTES

Description

Lectures 11 – 22 Tutorials 6 – 11 Week 6 – 11 Content LECTURE 11 & 12 - DIRECTORS DUTIES (PART 2) 4 S182(1): 4 COOK V DEEKS (1916) 1 AC 554: 4 GREEN V BESTOBELL INDUSTRIES PTY LTD (1982) WAR 1: 4 CRIMINAL LIABILITY: 4 183(1): 4 ARTEDOMUS V DEL CASALE (2006) NSWSC 146: 5 CRIMINAL LIABILITY: 5 CRIMINAL LIABILITY FOR BREACH OF DIRECTORS DUTIES - S184: 5 FORGIVENESS BY COMPANY FOR BREACH OF DUTY - NO LIABILITY: 5 o Furs Ltd v Tomkies (1936) 54 CLR 583: 5 o Queensland Mines Ltd v Hudson (1978) 52 ALJR 399; 5 STATUTORY DISCLOSURE AT BOARD MEETING: 5 ENTITLEMENT OF INTERESTED PARTY TO VOTE AT BOD: 6 S588G - INSOLVENT TRADING: 6 SHADOW DIRECTOR CAN BE LIABLE UNDER - S588G 6 4 DEFENCES TO CIVIL PROCEEDINGS - S588H: 6 ASIC WILL TAKE EITHER; 7 LECTURE 13 & 14; MEMBERS' RIGHTS & REMEDIES 9 BALANCING COMPANIES & MEMBERS INTERESTS: 9 DIRECTORS ACTIONS: 9 REMEDIES AVAILABLE TO MINORITY SHAREHOLDERS: 9 MEMBERS' RIGHT TO INSPECT BOOKS: 9 CORRECTION OF REGISTER - S175: 9 VARIATION OF CLASS RIGHTS - S246D: 9 DECLARATION THE PROCEEDINGS INVALID - 1322: 9 STATUTORY INJUNCTION FOR CONTRAVENTION OF CORPORATIONS ACT - S1324: 9 WHO MAY APPLY? 10 OPPRESSION S232: 10 WHO CAN APPLY? 10 ORDERS: 10 Wayde v New South Wales Rugby League Ltd (1985) 180 CLR 459: 11 John J. Starr (Real Estate) Pty Ltd v Robert R. Andrew (A'sia) Pty Ltd: 11 Re G. Jeffrey (Mens Store) Pty Ltd (1984) 2 ACLC 421: 11 Hannes v MJH Pty Ltd (1992) 10 ACLC 400: 11 STATUTORY DERIVATIVE ACTION: 11 RATIFICATION BY GM NOT A BAR TO AN APPLICATION - S239 12 COURT HAS DISCRETION IN RELATION TO THE COSTS OF THE APPLICATION AND SUBSEQUENT PROCEEDINGS - S242 12 WINDING UP - S461: 12 WHO MAY APPLY - S462(2): 12 EXAMPLES OF JUST AND EQUITABLE SITUATIONS: 12 LECTURE 15 - COMPANY'S LIABILITY FOR CONTRACTS 15 CO ENTERS INTO CONTRACT: 15 EXECUTION OF CONTRACT: 15 INDIRECTLY: 15 AGENT'S AUTHORITY: 15 CUSTOMARY AUTHORITY: 15 INDIVIDUAL DIRECTOR: 16 CHAIRPERSON: 16 MANAGING DIRECTOR: 16 OTHER LIMITATIONS: 16 COMPANY SECRETARY: 16 SECTION 129 ASSUMPTIONS: 16 WHEN THERE ARE TWO SIGNATURES: 17 LECTURE 16 - COMPANY'S LIABILITY IN TORT AND CRIME 17 CAPACITY OF CO - S124: 17 ORGANIC THEORY: 17 LIABILITY FOR TORTS: 18 THE CRIMINAL CODE ACT 1995 (CTH): 18 LECTURE 17 - AUDITORS 19 INDEPENDENT REPORT ON ACCOUNTS: 19 DUTIES: 19 STATUTORY: 19 AUDITOR MUST FORM AN OPINION: S307 19 REPORT TO MEMBERS - S308 19 DUTY IN CONTRACT OWED TO COMPANY: 19 DUTY TO USE REASONABLE CARE AND SKILL (DUTY IN CONTRACT AND IN TORT): 20 Pacific Acceptance Corp Ltd v Forsyth (1970) 92 WN (NSW) 29 20 Arthur Young & Co. v WA Chip & Pulp Co Pty Ltd [1989] WAR 100 20 Daniels v Anderson (AWA case) (1995) 37 NSWLR 438 20 CAUSATION - BUT FOR TEST: 20 DUTY TO OUTSIDERS - ONLY TORT LIABILITY: 21 PROXIMITY TEST FOR DUTY OF CARE: 21 LECTURE 18 - COMPANY FINANCING 21 SHARE CAPITAL V DEBT CAPITAL: 21 VARIATION OF CLASS RIGHTS - S246B 21 CHALLENGE: 21 LEGAL EFFECT OF VARIATION: 21 DEBENTURES S9: 21 LECTURE 19 - PUBLIC FUNDRAISING 23 6D - TO PROTECT PUBLIC BY GIVING SUFFICIENT INFORMATION 23 STEPS TO OFFER SECURITIES - S717: 23 DISCLOSURE REQUIREMENTS: 23 LODGING OF SUPPLEMENTARY OR REPLACEMENT DOCUMENT - S719 23 CONTENTS OF PROSPECTUS - S728(1): 23 Reiffel v ACN 075 839 226 [2003] FCA 194 23 CIVIL LIABILITY: 24 DEFENCES 24 LECTURE 20 - TRANSACTIONS AFFECTING SHARE CAPITAL 24 MAINTENANCE OF SHARE CAPITAL: 24 EXEMPTIONS: 24 REDUCTION OF CAPITAL: 24 CAPITAL REDUCTION 25 Re Fowlers Vacola Manufacturing Co Ltd [1966] VR 97 - Fairness 25 EQUAL V SELECTIVE REDUCTION - S256B(2): 25 CONTRAVENTION – S256D 25 INJUNCTION REMEDY AVAILABLE TO CREDITOR OR MEMBER IF INSOLVENCY IS AN ELEMENT OF THE 25 SHARE BUY-BACK - S257A: 25 BUY-BACK PROCEDURE – S257B TABLE 26 OVER 10/12 LIMIT: 26 SELECTIVE BUY-BACK – S257D 2 SITUATIONS 26 OTHER CONSEQUENCES – S257J TABLE 26 FINANCIAL ASSISTANCE TO PURCHASE COMPANY SHARES OR HOLDING COMPANY SHARES- S260A-C 26 PERMITTED IN 3 SITUATIONS: 26 S260B 26 CONTRAVENTION – S260D 26 LECTURE 21 - TAKEOVER 27 GENERAL PROHIBITION ON PERSON ACQUIRING RELEVANT INTEREST IN SHARES S606 27 WHO IS PERSON AFFECTED? 27 ASSOCIATE - S12 (APPLIES ONLY TO TAKEOVERS): 27 EXAMPLES OF EXEMPTED ACQUISITIONS - S611 27 TAKEOVER BID - S616 27 OFF-MARKET BID - S632 (STEPS) 27 INFORMATION IN BIDDERS STATEMENT - S636 28 INFORMATION IN TARGET'S STATEMENT: 28 EXPERTS REPORT IN 2 SITUATIONS - S640: 28 CONDITIONAL OFFERS - ONLY FOR OFF-MARKET BID - S625 28 ON-MARKET BID (STEPS) - S634: 28 COMPULSORY ACQUISITION FOLLOWING TAKEOVER BID - S661A 28 COMPULSORY BUY OUT: 28 NO MISLEADING OR DECEPTIVE STATEMENTS - S670A 28 CIVIL LIABILITY S670B 28 DEFENCES - S670D 29 LECTURE 22 - EXTERNAL ADMINISTRATION CH 5 29 4 WAYS: 29 RECEIVERSHIP: 29 POWERS: 29 DUTIES - ANALOGOUS TO DUTIES OF MORTGAGEE 29 LIABILITIES OF CONTROLLER: 30 SUPERVISION OF RECEIVER - S423: 30