COMPANY LAW- TUTORIAL QUESTIONS

CASE STUDY - UNIT 1

Using the principles of law, supported by cases and the Companies Act 2004 where appropriate, answer the following question. A couple of years ago, Mr. Opportunity and his wife Miss Success incorporated a company, with the name Healthy Foods Limited. The company specialized in baking healthy snacks and making natural juices. The company was incorporated with 100 shares, 99 of which was held by Mr. Opportunity and the remaining share by his wife. Mr. Opportunity was the sole director of the company and was responsible for the marketing of the goods while his wife was the company secretary and had responsibility for the accounts. They operated the business from a shop they rented in the Montego Bay Shopping Centre. The company enjoyed much success and was a popular spot for health conscious persons, until Mindy an employee and also the person responsible for making the juices, sold contaminated juice to a customer. The customer who suffered severe medical complications as a result of the contaminated juice decided to take legal action against the company. Miss Success argued that Mindy was the one who made the juice and should be held personally liable and not the company. Advise the customer.