Facts:

Family Wines PTY LTD (FWPL) is a family run and owned business and it is proud of its longstanding connection with the community of Melbourne, where it has been a significant employer for over 50 years.The local hospital is raising money to build a new, aged care facility for the community.

Mario Galli, a director and member of FWPL, would like FWPL to make a significant donation to fund the new facility. He is hoping the facility will be called the 'Angelo and Francesca Galli Home' after his parents, who were the company's founders.

Peter O'Donnell, who is also a member and director of FWPL has queried whether this is an appropriate use of corporate funds, particularly given the substantial investment FWPL will be making this financial year in developing the organic vineyard.

Having regard to their duty to act in the best interests of the company can the donation be made?

Use legislation and common law to support your arguments.

Issue -?

Rules-?

Apply-?

Conclusion - ?