Question One- Chapter 24

"Under the proper plaintiff rule the members of a company can sue the directors for breach of duty so the statutory derivative action of the CA is unnecessary."

Do you agree with this viewpoint? Explain the statutory derivative action as provided in the CA.

Question Two- chapter 24

Bertie is the only director, chief executive and majority shareholder of Bubbles Pty Ltd, a company that makes bubble gum. Bertie registers his own company Chewy Pty Ltd which makes chewing gum. Neither company has a constitution. Bertie diverts customers from Bubbles Pty Ltd to Chewy Pty Ltd.

Bertie calls a members' meeting of Bubbles Pty Ltd and succeeds in having a resolution passed that permits him to trade in competition with Bubbles Pty Ltd and to retain the benefit of any business he has diverted.

Morris, a minor shareholder in Bubbles Pty Ltd, is strongly opposed to the members' resolution and seeks your advice on whether there are any remedies available for members in situations such as this.

Question Three- chapter 22

What are the reporting obligations (including deadlines) to the members, and to ASIC, of the following companies - small proprietary companies; large proprietary companies; and, unlisted public companies that are not disclosing entities?