COMPANY LAW PROBLEM QUESTION

Slick Ltd is a distributor of pharmaceutical products, conducting most of its business in the Sub-Saharan Africa region. Its parent company, Multi-T plc, is a major pharmaceutical manufacturer based in the United Kingdom but has interests in several countries where it operates through a network of subsidiaries and licensed agencies. Slick is the sole distributor of Multi-T's products in the sub-Saharan African market. Two of Slick's five directors are also directors of Multi-T whilst another is a former senior employee of Multi-T who is now retired. A South African company called Vape Logistics Ltd is owed money by Slick for services provided over a period of two years. However, Slick's business has suffered due to a recent surge in competition in the market and low demand for the company's core products. Multi-T has also received tax advice from Shadows Tax Advisory that it could substantially reduce its tax liabilities by removing assets from Slick with a view to shutting it down. Discouraged by the business downturn which had seen Slick becoming a liability on its multinational operations, Multi-T decided to implement the tax advice. Calling it "a major business reorganisation" exercise, Multi-T has centralised all of its distributing operations to its headquarters in London. Slick's assets have been transferred leaving Slick with very little in reserve. Multi-T has also taken over all of Slick's remaining contracts. In light of this, Vape Logistics realises that any action against Slick will almost certainly be futile as Slick has very few assets of any value. It now seeks advice on the implications of the decisions regarding Slick and whether there are any prospects of recovering its claims. Discuss

ANSWER IN IRAC METHOD.

ISSUES?

RULES?

APPLICATION?

CONCLUSION?

in details pleaseeeee....