Highlights
Scenario
You are a trainee solicitor in Delaney Williams, Lawyers and Consultants. You work for Jo Delaney, Lawyer. Prepare a Memorandum of Advice as per the instructions as set out below:
Client File #1- pro bono work by the firm
Sachin, Naomi, and Patel met at university and want to contribute solutions to the issue of homelessness in Melbourne. They have raised money to purchase and fit out three ex-commercial delivery vans. They have been operating as ‘Street Fleet.’ Each of the vans can sleep three people on an emergency basis. The vans also have desks fitted to allow people to prepare CVs and job applications. Sachin, Naomi, and Patel now want to formalize the not-for-profit business. Initially they want to consolidate in Victoria, but they would like to expand it nationwide and to have charitable status
1.1 What are the potential choices of entity for the business to operate in Victoria?
1.2 What formalities are required to establish the Victorian entity?
1.3 What are the choices for an Australia wide business?
1.4 How do they achieve charitable status and what are the benefits of this status?
Client File #2
Xiang, Zoe and Imran are looking to set up Green Eco Solutions Pty Ltd (GES), using a filtration pump system (weighing 2 tonnes) which they have developed in Zoe’s garage. It cleans up rivers and inland waterways. They have become aware of a sale by Receiver and Manager of Coal Carters Ltd (CCL). The Receiver is advertising for sale a fleet of five commercial trailers (suitable for transporting the GES pumps) which is usually each worth $20,000 and the normal price would therefore normally be $100,000. Given CCL’s precarious financial position, the total price is a bargain of $18,000, but Xiang, Zoe and Imran need to act fast if they want to secure the deal.
2.1 What is involved in setting up GES?
2.2 What are the risks and issues associated with proposed contract with the Receiver and Manager of CCL, assuming that GES has not been incorporated?
2.3 How does your advice vary if the company eventually set up is instead called Green Eco Frameworks Pty Ltd?
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