CORPORATION LAW
Table of Contents
Question 1: Week 1 Tutorial: Key Advantages of Company Compared Between Sole Trader and Partnership    3
Question 2: Week 5 Tutorial: Explaining the Doctrine of the Indoor Management Rule in Relation to a Company Entering into Contract with Relevant Case Examples    3
Question 3: Week 6 Tutorial: Advising Kelly and Jordan    5
Question 4: Week 7 Tutorial:    5
a) Discussing if the Company needs to Hold Regular Meetings    5
b) Providing Suitable Advice to Chuck if he can do this    6
c) Providing a Suggestion on the Ways, in which Shareholders’ Meeting should be Held    6
Bibliography    8
Question 1: Week 1 Tutorial: Key Advantages of Company Compared Between Sole Trader and Partnership
When a company is compared to sole trader and a partnership, we can find many advantages. A company is a separate legal entity whereas sole trader and partnership firm are not separate from its owners or partners. A company can raise money from public equity markets whereas a sole trader and partnership cannot. For a company shareholders are real owners whereas in sole trader and partnership, owner and partners are considered as owners respectively[footnoteRef:1]. [1: L. A. Stout, "The Economic Nature Of The Corporation" (2017) 2 The Oxford Handbook of Law and Economics.]
In a company, liability is limited up to the amount invested in shares by the shareholder like unlimited with share capital, limited by shares, limited by guarantee or no liability. The assets belong to company and not the directors. On the other hand, sole trader‘s liability is not restricted. They might have to show some assets. In a partnership firm, partners also do not enjoy limited liability. They are liable for each other’s share and mistakes also[footnoteRef:2]. [2: W. K. Sjostrom, Business Organizations: A Transactional Approach (Wolters Kluwer Law & Business, 2019).]
A company secure its shareholders from outside risk. A sole trader and partnership have to bear losses on their own. They cannot separate their companies from them. In case of dissolution of a company, assets of company are sold whereas in case of sole trader and partnership personal assets and personal guarantee is used to pay off the debts. A company has a never-ending business and can be dissolved in case of bankruptcy or if it turning sick unit.
Question 2: Week 5 Tutorial: Explaining the Doctrine of the Indoor Management Rule in Relation to a Company Entering into Contract with Relevant Case Examples
The Doctrine of Indoor Management says that it is protecting an individual, who is acting on behalf of a company negotiating with other firms’ agent to enter into a contract on the criteria that the person was not capable enough and had right authority to enter into the contract[footnoteRef:3]. It is assumed that person is aware of company’s policies, affiliated documents and certifications. He is acting on the firms’ policies and procedures. This is done in order to make sure that out of any contract the company is gaining and not the individual at his personal level. [3: E. Jackson, A. Looney and S. Ramnath, "The Rise Of Alternative Work Arrangements: Evidence And Implications For Tax Filing And Benefit Coverage" (2017) 114 Office of Tax Analysis Working Paper.]
This came into force by a famous case between Royal British Bank vs Mr Turquand. With reference to the above discussion, the case study of Northside Developments Pty Ltd vs Registrar-General (1990) 93 AlR 385 can be analysed. Here with this we will be discussing about Doctrine of Indoor management rule[footnoteRef:4]. Northside Developments PTY Ltd. (Northside) was...