Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sarah had a farm in Margaret River where part of the land was used for growing grapes. Her business involved growing the grapes and selling

image text in transcribed
image text in transcribed
Sarah had a farm in Margaret River where part of the land was used for growing grapes. Her business involved growing the grapes and selling the crop to a local winery that was run by Jane. Two years ago, Sarah and Jane decided to go into business together and register a company Sarah Jane Pty Ltd, with the intention that Sarah would look after the growing of the grapes and Jane would extract the wine and promote the sale of the wine. Before the company was registered, Sarah's accountant, Horace Rumpole, ordered some winemaking machinery from Joe Machinery Lid under a contract, which he signed as "agent of Sarah Jane Pty Ltd." Sarah Jane Pty Ltd issued 300,000 $1 shares to Sarah and 200,000 $1 shares to Jane. Both Sarah and Jane transferred their businesses to the company in exchange for the shares. Sarah and Jane were made the directors of Sarah Jane Pty Ltd. The business was very successful and required more capital, so a year ago Sarah and Jane decided to convert Sarah Jane Pty Ltd into a public company, 'Sarah Jane Ltd' with the following constitution: "The provisions of the Corporations Act 2001 (Cth) shall apply to this company except for the following: 1. Horace Rumpole shall be the company's accountant until 31 December 2016. 2. The company shall only grow grapes and operate a wine making business." Sarah Jane Lid now has a large number of shareholders through the issue of 1 million shares to the public and the directors of the company are Sarah, Jane and Kate. Six months ago, the directors of Sarah Jane Ltd decided that since they did not require all the land for growing grapes for their winery, they would grow wild flowers on a portion of it. This decision was based on recommendations from Horace Rumpole. Being confident of the wild flower crop, Sarah Jane Lid entered into a contract to supply Hilda Florists Ltd. However, the soil in the vineyard proved to be unsuitable for growing wild flowers and Sarah Jane Ltd could not supply Hilda Florists Ltd

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Family Law

Authors: Jonathan Herring

10th Edition

1292343257, 978-1292343259

More Books

Students also viewed these Law questions

Question

Describe three types of learning discussed in the work of Koffka.

Answered: 1 week ago

Question

Discuss the various types of policies ?

Answered: 1 week ago

Question

Briefly explain the various types of leadership ?

Answered: 1 week ago

Question

Explain the need for and importance of co-ordination?

Answered: 1 week ago

Question

Explain the contribution of Peter F. Drucker to Management .

Answered: 1 week ago