Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Krish and Bianca are friends and decide to start up a retail nursery business. On advice from their accountant, they incorporate a proprietary company called

Krish and Bianca are friends and decide to start up a retail nursery business. On advice from their accountant, they incorporate a proprietary company called Butterfly Pty Ltd. The nursery was very successful, and Bianca commences serving refreshments in the nursery shop. Krish always resisted the idea of serving refreshments in the nursery because it was not part of their main business plan. He alleges that this refreshment service diverted resources away from the nursery. Bianca argued that it enhanced the business by drawing more customers and that potentially the income from the refreshments would outstrip the nursery revenue. Gradually, their differences in opinion have grown, and their relationship has become very difficult. Decisions about the management of the business are difficult to achieve. A deadlock situation is continuing in the company.

You are the adviser of the company, and therefore, Krish and Bianca have approached you for advice regarding the future of the company.

On the basis of the facts outlined here, you are REQUIRED to:

Suggest ways to keep the company running, if possible. If it is impossible for the company to continue to trade, then what are the options for closing down the company and how will that be done. Your answer should include references to relevant cases (if any) and appropriate provisions of the Corporations Act 2001 (Cth).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Constitutional Law Cases And Materials

Authors: Jonathan Varat, Vikram Amar, Evan Caminker

16th Edition

1647083613, 978-1647083618

More Books

Students also viewed these Law questions