As stated in the decision of Gambotto v WCP Ltd (1995) 182 CLR 432 at 447:

A share is liable to modification or destruction in appropriate circumstances but is more than a 'capitalised dividend stream,' it is a form of investment that confers proprietary rights in the investor.

With reference to the above, case law and statute as necessary, analyse:

(i)the decision of Gambotto and the fraud on the minority remedy;

(ii)the statutory oppression remedy in ss 232-234 of the Corporations Act 2001 (Cth);

(iii)the distinction between the fraud on the minority remedy and the statutory oppression remedy; and

(iv)how these two member's remedies attempt to achieve a balance between the interests of majority shareholders and minority shareholders.

Total (50 marks)

Marking Guide

Research (40%)

This assignment requires a comprehensive review of the primary law sources (legislation, case law) as well as a review of secondary sources (for example textbooks, journal articles, case commentary, explanatory memoranda, Law Reform Commission reports). The research should clearly identify the relevant issues and legal principles and support the analysis.In doing so, the work of others should be correctly referenced and appropriately acknowledged.

Analysis (50%)

The information gathered should be analysed to evaluate the relevant legal principles. The argument should be developed logically through clear analysis and application of the relevant legal principles to resolve the issue(s). This analysis should also:

integrate and evaluate relevant knowledge from the material covered in this unit

develop and sustain a concise and convincing legal argument through to a logical conclusion, and

importantly, answer the specific question asked.

Technical aspects (10%)

The paper should:

correctly reference and acknowledge sources.Please note the reference system adopted in this assignment can be either the AGLC 3 (Australian Guide to Legal Citation 3rd ed) or the Harvard referencing system. The referencing system adopted must be used correctly and consistently;

use fluent, clear, concise writing that contains clear expression, correct grammar, syntax, sentence structure and spelling; and

use headings and subheadings (where appropriate), an introduction, conclusion and bibliography or reference section.