Question 1

Giving an example, distinguish between the capacity of a company and the capacity of its agents. Your answer should highlight why the distinction is important.

Question 2

In relation to a public company issuing debentures through a prospectus explain the actual or potential roles of the trustee for debenture holders, the prospectus, the debenture trust deed, the register of charges and a receiver.

Question 3

"Partners are in a fiduciary relationship with each other". Explain and illustrate this concept. Also explain when the fiduciary relationship may begin and when it ends.

Question 4

"In Salomon v Salomon & Co. Ltd [1897] AC22, Mr Salomon was very lucky. Today, on the same facts, he would be personally liable for the debts of the company, and the security (debenture) given to him by the company would be invalid as a priority over the unsecured creditors". Do you agree? Comments.

Question 5

The Board of Directors of Lackcash ( a proprietary co) are considering the following options: (a) To raise capital of $6 million by an issue of shares to its shareholders; or (b) To utilise any method of obtaining the $6 million without contravening Ch 6D of the Corporations Act. Advise the Board of Lacklash Pty Ltd of the corporations law involved.