For Case Study you will prepare 1 Background Briefings (PIRAC) and 1 client letter.

Facts of the Case - Scenario

In 2014, Rachel Jones and Emily Lee created Cutting Edges, a partnership producing a range of high-end knives for the catering trade and shears for the hairdressing and seamstress trade. In 2019, it became a company: Cutting Edges Pty Ltd.

At the moment, Emily is the Chair of the Board. The other shareholders are:

Rachel

Elise Jones and Antonia Jones (Rachel's daughters)

James Lee and Sean Lee (Emily's sons)

Rory McNeil and Anna Lim (long-time employees of the business, not family members).

Rachel has had some health issues. She now works part-time, focusing on designing new knives/shears, leaving the day-to-day operations and decision-making to Emily.

For a long time, Antonia has felt powerless and resentful about Emily's sons following whatever their mother wants, in relation to company matters. Elise doesn't get actively involved. James maintains absolute loyalty to Emily when it comes to company decisions, and Sean takes no active interest in the company.

At a general meeting last week, members voted on Emily's proposal to not pay dividends out of recent profits, but to reinvest them. This is the second year in a row that Emily has done this with the members' approval.

In another resolution, the company decided to restructure its shares. There are to be additional shares that will only be available to Emily, James, Sean, Rory, and Anna. Elise and Antonia are seen as threats to the company because they often disagree with Emily and her family.

Rory and Anna are unlikely to take up the additional shares, and James and Sean are currently speaking to their financial advisers about whether they can afford to invest more money into the company.

Advise Antonia on her legal position as a member. Does Antonia as a shareholder have to vote in line with the business's best interest?

Instructions:

For the scenario, there are two (2) tasks.

Task 1: You will do a background briefing. For this, you will use the PIRAC method discussed in Week 1. Your background briefing should be reasonably detailed, outlining the law that you believe applies (cases and legislation). For cases, you must indicate the key findings/authority and why you are either applying or distinguishing the case. For legislation, you must indicate specific sections you are relying on and why you believe they apply. If there are cases that assist in interpreting these specific sections they should be identified, including the key findings.

Remember, you will need to apply what you have learned from the lectures, required readings and extra resources to the legal issue or issues at hand. Details as to legal referencing are provided in Module 1 with the link to the UTAS Library Law Guide. A quick reference guide has also been provided.

Task 2: You must prepare a separate letter of advice TO your clients. Your advice is to be prepared in a structure that is appropriate to use when giving clients advice about their legal questions/dilemmas and the possible legal and practical solutions to those issues or dilemmas. A template for the client letter is available on MyLo under Assessment although use of the template is not compulsory.