Question 1:

Suttons Pty Ltd needed 10 new computers for use by employees of the company.

After doing some research, Suttons Pty Ltd eventually bought 10 computers from a local office supplies shop called Officeworkers Ltd.

a) Which section of the Corporations Act 2001 (Cth) makes it possible for Suttons Pty Ltd to enjoy legal capacity?

b) Which case helped us to recognise that companies like Suttons Pty Ltd are separate legal entities from its shareholders, directors and employees.

c) Which case helped us understand that the property (eg computers) that is purchased by the company, belong to the company.. NOT to the shareholders of the company?

d) Which case helped us understand that companies like Suttons Pty Ltd can sign employment contracts in order to hire people?

e) What would be the likely consequence if it was discovered that Suttons Pty Ltd was insolvent at the time it placed the order for the computers?

Question 2:

Case Study:For the past ten years, Tommy has been the senior news editor at Fake News Pty Ltd. Tommy's employment contract includes a'Non Compete'clause which prevents employees from competing with the company (e.g. steal company clients) after they resign.

Tommy resigned from his role on 1 April this year.

It is later discovered that Tommy left this job because he started dating Matilda, the company's biggest client.

It is also discovered that Matilda cancelled her contract with Fake News Pty Ltd and was now working exclusively with Tommy - who registered his own company soon after resigning from Fake News Pty Ltd.

a) What is the name of the case where someone tried to avoid a non-compete clause by starting a company?

b)In the case you just mentioned in (a), what did the court do to help the innocent party?

c)Can you think of another example, this time contained in the Corporations Act, where the court will ignore the company structure and penalize the individual decision makers that might be hiding behind the corporate veil?