HA3021 Corporations Law- Consequences of Registration

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HA3021 Corporations Law

Task

Part A: Business Structures Question (20 marks)

Read the questions below on Business Structures.

In 1,500 words (+/- 10% is allowed), answer the given questions.

A minimum of 3 genuine and relevant references are required for this part of the report. Examples of relevant references for this question include the Corporations Act 2001 (Cth); the Australian Securities and Investment Commission’s (ASIC) website (www.asic.gov.au), the website of the Australian Business Register’s (ABR) website (www.abr.gov.au).

Your references must be listed in a Reference list at the end of the Part A question.

For Part A, you will need to answer both questions a) and b).

a) Dr Abby is a medical practitioner who earns $150 000 per year on average. Her husband, Ben, is not employed in the paid workforce, but takes care of their three children, Charlie, Di and Elizabeth, all of whom are under 18 years of age and dependants of Abby and Ben. Abby seeks your advice on how best to structure her practice and affairs to minimise her taxation liabilities and protect her key assets (e.g. the family home) from potential litigants.

Advise Dr Abby as to what business structure would be most suitable for her situation. (Maximum answer 750 words)

b) For the past several years, Rawiri has been working on a new design for the manufacture of surfboards. While Rawiri believes that the sale of his inventive surfboard will make a lot of money, considerable additional research and development is needed to perfect the design. Indeed, the first few prototype surfboards that were manufactured snapped and one had fins that were too sharp and injured the person using it. Rawiri believes that if the design is successful, many thousands of people will want to invest in his company.

Advise Rawiri about the most suitable type of company for his surfboard design project. (Maximum answer 750 words)

Part B: Company Registration and Consequences of Registration (20 marks)

Read the question below on Company Registration and Consequences of Registration.

In 1,500 words (+/- 10% is allowed), answer the question using the IRAC method.

Your answer must be supported by sections of the Corporations Act 2001 (Cth), relevant legal principles and cases decided by Australian courts and/or scholarly articles. A minimum of 3 genuine and relevant references are required for this part of the report.

Your references must be listed in a Reference list at the end of the Part B question.

For Part B, you will need to answer both questions a) and b).

Questions:

a) What is the ‘corporate veil’ and under what circumstances is an Australian court likely to lift it? (Maximum 600 words)

b) Twenty information technology specialist programmers get together to provide an opensource, non-profit quality online encyclopedia which can be used as a reference tool, like Wikipedia, for the common good of members, who may be students or non-students.

Pages in the encyclopedia will be edited by members, who will pay $5.00 per year to subscribe to the group. None of the members feel that incorporation is warranted at this stage.

  • What type of legal structure is the group?
  • At what point, and in which circumstances, might it be necessary for the group to incorporate? (Maximum 900 words)

HA3021 Corporations Law

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