Question 1:

A partnership can be created unintentionally between two or more persons through their actions.

Discuss the above statement using at least one precedent for illustration. How is the situation different when creating a company?

Question 2:

A trading trust may have a limited liability company as its trustee. Explain to Mr Chao the nature of a trading trust including the obligations the company owes to the beneficiaries of the trust and the role of the company directors where the company is a trustee.

Question 3:

The advantage of a company is that the directors and shareholders involved in the company cannot be personally liable should the company fail.

Discuss this statement. Is it true, partly true or false?