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1: Part B-ANSWER BOTH QUESTIONS (35 marks/question-Total: 70 marks) a) Identify and explain the three tests that are used to distinguish an employee from an
1: Part B-ANSWER BOTH QUESTIONS (35 marks/question-Total: 70 marks) a) Identify and explain the three tests that are used to distinguish an employee from an independent contractor. Give one example of case law to illustrate each test (20 marks) b) Henry is a majority shareholder in three companies. Such companies have faced difficulties with their business and Henry has approached you, as a lawyer, to give him some legal advice. His concem is whether or not there is sufficient ground in each case for compulsory winding-up by the court L Middle East Ltd. is a private trading company. This company owed 5,000 to a supplier of office equipment. The supplier has served a formal written demand on the company 2 months ago and the company fails to pay the debt ii. New Heaven Ltd. was registered as a private company. For personal conflicts, the directors of the company quarrelled bitterly, leading to the deadlock in management and inability to make business decisions Ill. For administrative reasons, Paradise Plc. was registered as a public limited company 9 months ago but it has not yet been issued with a trading certificate. (15 marks) Question 2 a) Distinguish between a company and a partnership (20 marks) b) Andrew is managing director of a company. He has the power to conclude contracts for sale of goods. He accepted a bribe from a supplier with the intention that all future supplies needed by the company would be ordered from that supplier, in facts, the price of goods provided by this supplier is higher than others in the market. is the managing director in breach of his duties? If so, which duty was the managing director in breach of? Explain the reason (15 marks) Scanned with CamScanner 711
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