Assignment 1: Australian Contract Law

Identify the areas of law that are relevant to the chosen media report, and explain how they are relevant to the matters outlined in the report.

Issue: Have the directors of the company breached their duties mainly related to the company’s insolvent trading.

Write a 700- to 1,050-word paper in which you discuss the roles of law and courts in today’s business environment.

Write a 700- to 1,050-word paper in which you discuss the roles of law and courts in today’s business environment.

“We have completed this assignment on our own and have not discussed it with any other individual or used any other unauthorized aids. We acknowledge compliance with the academic requirements (e.g. citation of sources) of the University of Toronto.”

1. When interpreting legislation, the Courts use several approaches to aid their interpretation. Describe how the literal, golden and mischief rules of interpretation operate.

As is required by Daniels, the directors should be familiar with the current unsatisfactory financial status and entering into such transaction could deteriorate the company’s status even further. Under s180, a reasonable director wouldn’t lend a low-rate unsecured loan to a non-related business. Overall, the directors have breached the duty of care for Winanga. They may also owe fiduciary duties to James and Diana if they are in a position of particular advantage.

It is clear to see that throughout the project the tasks and progress were monitored very closely. The project is heavily dependent on the resources provided by its shareholders and in turn they rely on regular updates to reassure them on their investment. In the construction and building industry the methods and application of project management tools are very reliable and well tested. Therefore, it could benefit the project if the it was managed with detailed and defined practises and also follow standards set and agreed upon on a international level.

As a shadow director, under common law, statute law and fiduciary duties, Peter and Jan should be liable to IPO Insurance Ltd. These responsibilities include duties to act in good faith, to act for a proper purpose to meet best interests of the company, and to avoid conflicts of interest.

1. Identify the areas of law that are relevant to the chosen media report, and explain how they are relevant to the matters outlined in the report.

As the directors of Milton; Paris, Vienna and Sydney’s duties are personally imposed on them under s9 CA. This includes the duty to act with diligence and care, to disclose personal interest and to prevent insolvent trading (ss.180(1), 194 & 588(G) CA). Both Vienna and Paris are found

Re Hydrodam explains that a de facto director is a person who assumes to act as a director. To establish that a person was a de facto director you must prove that he undertook functions in relation to the company that only a director could discharge. It is not sufficient to show that he was concerned in the management of the company’s affairs.

An ‘outsider’ is incapable to enforce a right allegedly conferred upon him by the articles. This principle was established in Eley v The Positive Government Security Life Assurance Company, Ltd . According to Section-33, anyone other than the company and the shareholders is an outsider. As the director is an outsider, he shall not be able to enforce that provision in the event that the company declines to comply with it. Also, he will not be rescued by the Contracts (Rights of Third Parties) Act 1999, because the right of enforcement which the Act confers on third parties to contracts is expressly stated not to apply in

Identify the areas of law that are relevant to the chosen media report, and explain how they are relevant to the matters outlined in the report.

The other material point is that a One Person Company may have only one director. But at the same time there is no bar on more number of directors. However, as per the Act, the total number of directors shall not be more than 15.