Question
Zaira Ltd has 99% of the shares of Diomira Ltd and Diomira Ltd has 99% of the shares of Aleida Ltd. Zaira Ltd operates in
Zaira Ltd has 99% of the shares of Diomira Ltd and Diomira Ltd has 99% of the shares of Aleida Ltd. Zaira Ltd operates in the construction industry; Diomara Ltd in software development, and Aleida Ltd in retail industry.
Aleida Ltd entered into a contract with Julia Jayaratne in 2020. According to the contract, Aleida Ltd will buy annually a certain volume of apparel from Julia and will pay her $300.000 on April 2 each year for ten years.
Zaira Ltd and Diomira Ltd are in financial problems. Should Julia be worried about her contract with Aleida Ltd and payment due on April 2?
Explain on the basis of the Companies Act and the case law
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Business Law Text and Exercises
Authors: Roger LeRoy Miller, William E. Hollowell
8th edition
1305509609, 1305644823, 9781305856479 , 978-1305509603
