HI5027 – Corporations law
Individual Research Assignment 1
- There are two questions in this assignment. Answer both questions.
- Assessment marks available – 20 marks/ 20% of the total
- Late assignments will incur a deduction of one mark per day late, including weekends.
- Assignments older than 7 days will not be accepted.
- You must submit a hardcopy and a soft copy before the due date, with a cover sheet and safe assign summary.
- You must include at least one page of references.
- Due Date – Week 6
QUESTION 1 (10 Marks) (1000 words) (Companies and business planning.
Mary is the owner of a very successful business selling women’s shoes. Mary’s business is expanding rapidly and she wants to update her business structure from that of sole trader to a more appropriate structure. She seeks the advice of her accountant who tells her that she has a number of options, all of which have advantages and disadvantages.
What would be your recommendation to Mary and why? What factors would influence your advice?
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Write My Essay For Me!QUESTION 2 (10 Marks) (1000 words) (The legal nature of companies)
Myra is the only shareholder and director of Kids Clothes Pty Ltd (Kids Clothes) which makes cheap children’s clothing. The company has 10 employees. In the past Kids Clothes had operated profitably, however since 2011 it has been running at a loss. In July 2012 Myra paid herself a large bonus and then transferred all the remaining assets of Kids Clothes to a new company called Clothing for Kids Pty Ltd. The employees continue to be employed by Kids Clothes. Kids Clothes has no assets and owes each of its employees several thousand dollars in accumulated holiday, superannuation and long service leave entitlements.
(a) What possible legal grounds might the employees have to claim their entitlements from Clothing for Kids Pty Ltd?
(b) Could any action be taken against Myra personally?
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