COMPANY LAW (LAW3003) TEST 1-AY SEM 2022-2023 CASE STUDY Mr. Boss was the major shareholder and a director of Housing Construction Limited, a private company specializing in middle to low-income housing development. Mr. Boss worked for the company as the Structural Engineer for over one year and received a salary for that position. His wife Mrs. Boss and his sister Rosey were minority shareholders in the company. While working on a construction site for the company there was a major landslide and Mr. Boss was killed by fallen rocks. His wife, being the only beneficiary, claimed on a worker's compensation insurance policy that the company had taken out with General Insurance Limited naming Mr. Boss as an employee. The company has denied liability stating that Mr. Boss could not be an employee because he was the major shareholder and director of the company. Mrs. Boss is furious and has threatened to take legal action. Prior to incorporation of Housing Construction Limited, Rosey had purchased two delivery trucks at a cost of S2 M each to be used in the business. Upon incorporation of the company, she sold the delivery trucks to the company for $3M each. Rosey did not inform Mr. and Mrs. Boss that she purchased the delivery trucks two weeks before the company was incorporated. Mrs. Boss has recently discovered the facts about the delivery trucks and is contemplating seeking legal advice REQUIRED 1. Identify the main legal issues in the scenario above: 2. Explain the legal principles relevant to the issues identified above supporting your response with reference to relevant cases and sections of the Companies Act 2004