Answer ALL of the following short answer questions. Refer to relevant cases and provisions in the Corporations Act 2001 (Cth) where appropriate. a) Explain what is meant by the corporate veil and state three circumstances when the veil may be lifted. b) Explain two advantages and two disadvantages of operating a corporate structure as compared to operating as a sole proprietor.

c) Explain when directors can declare and pay dividends. d) Explain what an unfair preference is and when such a claim can be defended. e) Explain what a statutory derivative action is.