You are required to prepare an answer to a legal problem based on a factual scenario (below). This scenario will consider a number of issues of company law covered in Topics 1- 4. Using the IRAC methodology of legal problem solving, you are required to submit a paper that provides your answer to the problem using appropriate case and legislative authority. Although the scenario is presented as a request for advice by a client, you are required to structure your submission using the IRAC methodology and notas a letter of advice. Your submission should be structured to address the components contained in the IRAC methodology- namely; Issues, Rules, Application (of the Rules) and Conclusion. You may use headings, numbering, and bullet points to organise your response. Your paper should be referenced in accordance with AGLC4.

You are welcome to discuss the problem in study groups, but should not share your assessment submission or write your response with others. Your submission must be your own work.

THE LEGAL PROBLEM

Mai graduated from Charles Sturt University in (NSW, Australia) 6 years ago and for the last 5 years has been working for digital technology companies in Australia and overseas. She has recently returned to Australia and wants to build an app that helps drivers of electric vehicles (EVs) to find and book charging stations. Mai believes the app has great potential as there is nothing that currently offers real time availability for EV charging.

Mai has been saving hard and has over $50,000 to contribute to establish the business. In addition to using this money to build the app, she wants to lease an office space and hire a small team to work with her. She also wants to invite a good friend Eve, also from CSU, to join her in the business. Eve has 6 years experience working for e-commerce start-ups building technology infrastructure and apps, and is willing to contribute $20,000 towards start-up costs.

Mai seeks your advice. She has been told a company is the best legal structure for her business but wants to know:

(a) how she goes about establishing a company,

(b) whether she should adopt a company constitution and if so, if there are any special provisions she should include,

(c) how liability for the company's debts will be shared between her and Eve,

(d) how to sign the lease document in the company's name.

Please focus your answer on the most relevant advice for Mai and avoid generally restating the law without reference to the facts.