Question
1Hope Pty Ltd is the trustee of Jones Family Trust. The trust property is worth $500,000. Hope Pty Ltd runs an internet caf on behalf
1Hope Pty Ltd is the trustee of Jones Family Trust. The trust property is worth $500,000. Hope Pty Ltd runs an internet caf on behalf of the trust. The trust deed notes that the trustee can only enter into contracts in relation to running the internet caf. However, Hope Pty Ltd, on behalf of the trust, entered into several transactions worth $200,000. These transactions were in relation to building a railway in India. Hope Pty Ltd pays the $200,000.
Requirement: Advise Hope Pty Ltd on its right of indemnification from the trust property.
2Crash Pty Ltd (Crash) has four directors: Alan, June, Apple and Jack. Daphne is the company secretary. Crash's constitution notes that the company cannot enter into contracts with Robber Ltd (Robber) without the unanimous consent of the board of directors.
Alan was looking at a catalogue and he discovered that Robber was selling some cutting-edge technology that would be very useful for the company. He contacts Robber and asks for more information about the product. After reading the information sent to him, he becomes very excited about the deal and asks Robber to send the contract for the purchase of the technology. While not aware of the content of Crash's constitution, Robber and sends the contract to Alan. Alan signs the document as a director of the company. He also asks Daphne to sign the document in her capacity as Crash's company secretary. When the rest of the directors discover the existence of the contract they state that the company is not bound by the contract.
Requirement: Advise Robber.
3Pitching Wedge Ltd is a company that manufactures and sells golf clubs. The directors of the company are Dong, Jim and Anurpreet. Pitching Wedge Ltd sold Fines Pty Ltd a parcel of land at a price of $250,000. However, the property's market value was $350,000. Additionally, Dong is a majority shareholder of Fines Pty Ltd with 90% of the shares of the company.
Requirement: Under the Corporations Act, do the directors need to get members' approval for this transaction to proceed?
PS: The answers should include relevant legislation ( such as "ITAA 97 s 1-3") and/or cases (such as " Riches v Westminster Bank Ltd (1947)")
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