Case Study For Logan Butchers Pty Ltd, Steven, Desmond and Gerald & Jill - Common Law Duties Owed to LPT - Law Assignment Help

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Exercise 1 (Workshop objective 2)

Logan Butchers Pty Ltd is the registered shareholder of 35% of the shares in Raw Hide Pty Ltd. The other 65% of the shares are spread amongst 3 shareholders, Steven, Desmond and Gerald. Steven and Desmond each own 15% of the shares in Raw Hide. Logan Butchers is the proxy holder for Gerald’s shares. The proxy can be revoked by written notice from Gerald to Logan Butchers. Logan Butchers has agreed in writing to vote according to Gerald’s wishes in relation to the proxy.Raw Hide’s constitution provides that it must have a maximum of 5 directors, and that Logan Butchers has the power to remove 3 of the directors.
Is Logan Butchers the holding company of Raw Hide?

HINT: Draw a diagram

Exercise 2 (Workshop Objectives 5-7)

Jill was the owner of a small island located on the Gold Coast. Jill had development approval for the construction of a luxury apartment complex. Jill appointed Gina and John to set up the company Leisure Properties Pty Ltd (“LPT”), to find shareholders and enter into all relevant arrangements for its registration and operations. Gina and John (on behalf of the company yet to be registered) entered a contract on 11 May with Jill to purchase the land for $3.4 million. Jill had purchased the land on 2 February for a price of $2.5 million. Jill, Gina and John became directors. Immediately after incorporation on 8 July, the Board of LPT held a meeting during which Jill disclosed her profit of $900,000 to the directors and the contract to purchase the land was ratified by all directors. Gina and John receive legal
advice on 12th July that there is a breach of duty.

Advise LPT as to whether Jill:

1. Was a promoter of LPT;
2. Breached any statutory or common law duties owed to LPT; and
3. The remedies (if any) LPT has against Jill.

HINT: Draw a Diagram – it provides you and the reader with a better understanding of the facts

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