Hi Tutor,

I have received an essay question:

In Qintex Australia Finance Ltd v Schroders Australia Ltd (1990) 3 ACSR267,

Rogers CJ stated that:

'...there is today a tension between the realities of commercial life and the applicable law [in relation to the treatment of companies within a group]...

...the High Court of Australia confirmed the need to preserve, as a matter of law, a rigid demarcation between wholly owned subsidiaries in the same group of companies, as well as their holding company.[This legal position cannot be altered].

...It may be desirable for Parliament to consider whether this distinction between the law and commercial practice should be maintained. This is especially the case today...'

With the reference to the quote above (as modified), discuss whether you agree or not with these statements. Your answer must offer supporting reasons with reference to relevant law.

How would you suggest I answer this question correctly?

Thanks