Q1. (25 marks) ROREX NL ("ROREX") was a no-liability company that operated from January 2015 until June 204'1. Although headquartered in Australia, ROREX mined rare earth elements (REEs) in the US state of Arizona. REEs incorporate a number of different metallic elements in the earth's crust which are critical to the manufacturing of modern electronics (such as mobile phones). An effective REE mine takes many years to establish due to the complex extraction and refining processes. Whilst ROREX got off to a good start in 2015, due to significant and unforeseen operating costs over the 2020-2021 financial year (caused by the COVID-19 emergency), ROREX became insolvent in June 2021. At the time of declaring insolvency, ROREX owed money to many creditors, with debts running into the hundreds of millions of dollars. However, ROREX held several patents related to RE mining technology which could be sold to other REE miners. At the time of declaring insolvency, it was also widely observed that the REE mining industry was projected to boom within 5 years due to insatiable global demand for REEs. The Board of ROREX voted in June 2021 to place the company into voluntary administration. Question 1: Answer A, B, and C (25 marks total) A). Explain the meaning of "solvent" and "insolvent" according to the Corporations Act 2001 (Cth) (5 marks) ? . Outline the procedure for entering voluntary administration (5 marks). C). Given the circumstances of ROREX, consider each course of action that the voluntary administrator could take, paying attention to interactions between the company's participants (directors/members) and creditors, and the administrator. Which course of action do you think would be most suitable given ROREX's circumstances? (15 marks)

Question 2 Quiz navigation Q2. (25 marks) Not yet answered Honey Publications Pty Ltd ("Honey") is a small proprietary company that publishes a range of Bijay RAYAMA Marked out of digital subscription magazines and special interest periodicals. Honey was founded by the 25.00 Honey family in the 1960s during the "Great Magazine Boom". Mr Honey & Mrs Honey Flag question together hold 75% of the company's shares, and their children, Alexis Honey and Daniel Honey, hold 10% each. The remaining 5% is held by a cousin of Alexis and Daniel, Willy Rafter. Finish attempt ... Mr Honey, Mrs Honey and Willy Rafter are all directors of Honey. Time left 0:53:09 Honey had been a very profitable company from its beginning until 2020 when magazine sales started to decline. To make matters worse, Mr and Mrs Honey have been going through a divorce which threatens the integrity of the entire company. Mrs Honey has the support of Webcam her daughter Alexis Honey, whilst Mr Honey has the undying support of his son, Daniel Honey. Fearful of "what will happen" after they finalize their divorce, Mr Honey uses his power to issue 300,000 shares to his son Daniel. In return, Daniel promises to always vote in line with his father's wishes. Mrs Honey then decides that she will issue Alexis 350,000 shares; Alexis also promises to vote in line with her mother's wishes. Honey starts to descend into disarray with many key employees deciding to leave the company. Whilst the other family members are distracted with the divorce proceedings, Willy Rafter secretly transfers several valuable company assets to Honey-Pot Pty Ltd, a company that wholly owned and controlled by Willy. Willy places the Honey company seal on the contracts for transfer of the assets to Honey-Pot Pty Ltd and signs off as witness. Once the transfer of assets has been completed, Willy buys a one-way ticket to the Banana Republic and leaves his relatives without saying goodbye... Type here to search O Ei m 99+ 21.C Mostly susides that she will issue Alexis 350,000 shares; Alexis also promises to vote in line with her mother's wishes. Honey starts to descend into disarray with many key employees deciding to leave the company. Whilst the other family members are distracted with the divorce proceedings, Willy Rafter secretly transfers several valuable company assets to Honey-Pot Pty Ltd, a company that wholly owned and controlled by Willy. Willy places the Honey company seal on the contracts for transfer of the assets to Honey-Pot Pty Ltd and signs off as witness. Once the transfer of assets has been completed, Willy buys a one-way ticket to the Banana Republic and leaves his relatives without saying goodbye... Question 2: Answer both A and B (25 marks total) A). Are Mr and Mrs Honey permitted to issue shares to bolster their respective positions within the company? Explain whether Mr and Mrs Honey would be in breach of their directors duties with reference to the relevant law. Make sure you answer using IRAC structure and refer to any relevant sections from the Corporations Act 2001 (Cth) and case law (15 marks). B). Explain whether Willy Rafter followed the correct procedure under the Corporations Act 2001 (Cth) for validly binding Honey in contract. Advise whether the contract will be legally valid or not. Make sure you answer using IRAC structure and refer to any relevant sections from the Corporations Act 2001 (Cth) and case law (10 marks). B I Type here to search O 99+ 21.C Mos