COMPANY LAW (BSL305) Assignment

COMPANY LAW (BSL305) Assignment: Tony is a Perth-based entrepreneur who has been developing artificial intelligence software using a machine-learning algorithm to randomly generate and compose pieces of music.

Module / Subject / School:

BSL305 Company Law

Murdoch University


Your answer to the six questions below must not exceed 1,200 (+/- 10%) words. You can divide the 1,200 words between the six questions however you like but bear in mind the marks allocated to each of them.

  1. Tony asks you whether a sole-trader entity or a private incorporated entity would be best for his situation. Compare and contrast  the two business structures and suggest which would be best. (5 marks)
  2. Peter and Mary would like to know whether they are obliged to reinstate Norman as Master Coffee Maker. (5 marks)
  3. a) Steve would like to know whether he will be considered a promoter by the courts in relation to his activity in establishing Starky Computer Hire Pty Ltd. (2.5 marks)b) Steve would also like to know the likelihood of being held personally liable by Eternal Computers Pty Ltd in relation to the service agreement with them. (2.5 marks)
  4.  Discuss the reasoning of the court and the significance of the findings of Salomon v Salomon & Co Ltd with regard to the concept of separate legal entity and piercing of the corporate veil. (5 Marks)
  5. With reference to specific sections of the Corporations Act 2001 (Cth), explain the difference between a company limited by shares and a company limited by guarantee. (5 marks)
  6. With reference to the cases of Tesco Supermarkets Ltd v Nattrass [1972] AC 153 and Brambles Holdings Ltd v Carey (1976) 15 SASR 270 explain the concept of a company’s ‘directing mind and will’ and in what circumstances an individual may be considered part of a company’s directing mind and will. (5 marks)

What we score:


Our Writer’s Comment 

The assignment requirements are clear and structured, consisting of six questions with allocated marks. Here are some comments on each question to help students score well:

  1. Tony’s Business Structure: When comparing and contrasting the sole-trader entity and private incorporated entity, ensure that you discuss the key characteristics, advantages, and disadvantages of each structure. Analyze Tony’s specific situation, such as the nature of his business, liability concerns, tax implications, and the desired level of control and ownership. Provide a well-reasoned suggestion for the best business structure based on the analysis.
  2. Reinstatement of Norman: Evaluate the circumstances surrounding Peter and Mary’s obligation to reinstate Norman as the Master Coffee Maker. Identify any relevant employment laws or contractual obligations that may impact their decision. Consider factors such as unfair dismissal laws, employment contracts, company policies, and any potential legal consequences. Provide a clear analysis and conclusion based on applicable legal principles.
  3. a) Steve as a Promoter: Discuss the concept of a promoter in relation to Steve’s activities in establishing Starky Computer Hire Pty Ltd. Explain the criteria used by courts to determine whether someone qualifies as a promoter. Provide examples and reference relevant legal cases or statutory provisions to support your analysis. Consider factors such as pre-incorporation contracts, fiduciary duties, and the promoter’s role in the formation of the company.b) Steve’s Personal Liability: Assess the likelihood of Steve being held personally liable by Eternal Computers Pty Ltd in relation to the service agreement. Analyze the concept of personal liability, especially in the context of contractual relationships between individuals and corporations. Discuss relevant legal principles, such as agency, contractual capacity, and any statutory provisions that may impact personal liability. Provide a well-supported conclusion based on legal analysis.

Comments for 4, 5 and 6 are withheld.

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