Sample Examination Question
Sample Examination Question
The senior partner of your firm has handed you the following file with instructions to prepare a draft opinion for him. He will be meeting the client shortly and needs to have a first cut of the advice that will be rendered.
Your client is Mr Abel Tan. He holds 20% of the shares of Golden Fortune Trading Pte Ltd. 30% is held by his half-brother Baker. A further 30% is held by Mdm Doris Yong, the widow of Charlie Tan, another half-brother. The company was founded by their father, the late G F Tan, who ran it in the usual autocratic Chinese fashion while he was alive. Baker, his eldest son by his first wife, was the Managing Director, a post he continues to hold. During G F’s lifetime he would instruct Baker what to do. The board of directors consisted of Baker, Charlie and Eldon Tan (G F’s third son, also by his first wife). Abel was only appointed to the board three years ago, just before G F’s death.
The company’s business is the importation of abalone for the Singapore market. This trade depends almost entirely on personal contacts with suppliers in China. When Abel joined the board he discovered that the Chinese suppliers actually ship the goods to a Hong Kong company, New Fortune Seafood (Hong Kong) Ltd. As far as Golden Fortune’s records show, New Fortune is the major supplier to Golden Fortune, accounting for well over 80% of the business on average. It does not appear to be related to Golden Fortune. A suspects that New Fortune is owned by Baker and Charlie but has been unable to obtain confirmation of this. His information was gleaned from conversations with employees of Golden Fortune. Baker has been the one running the business since G F was incapacitated by a stroke 10 years ago (Your client was in university then and took no part in the family business). Charlie occasionally dealt with suppliers when Baker was otherwise engaged, but since Charlie’s death two years ago, the business has been in Baker’s hands exclusively.
The senior partner of your firm has handed you the following file with instructions to prepare a draft opinion for him. He will be meeting the client shortly and needs to have a first cut of the advice that will be rendered.
Your client is Mr Abel Tan. He holds 20% of the shares of Golden Fortune Trading Pte Ltd. 30% is held by his half-brother Baker. A further 30% is held by Mdm Doris Yong, the widow of Charlie Tan, another half-brother. The company was founded by their father, the late G F Tan, who ran it in the usual autocratic Chinese fashion while he was alive. Baker, his eldest son by his first wife, was the Managing Director, a post he continues to hold. During G F’s lifetime he would instruct Baker what to do. The board of directors consisted of Baker, Charlie and Eldon Tan (G F’s third son, also by his first wife). Abel was only appointed to the board three years ago, just before G F’s death.
The company’s business is the importation of abalone for the Singapore market. This trade depends almost entirely on personal contacts with suppliers in China. When Abel joined the board he discovered that the Chinese suppliers actually ship the goods to a Hong Kong company, New Fortune Seafood (Hong Kong) Ltd. As far as Golden Fortune’s records show, New Fortune is the major supplier to Golden Fortune, accounting for well over 80% of the business on average. It does not appear to be related to Golden Fortune. A suspects that New Fortune is owned by Baker and Charlie but has been unable to obtain confirmation of this. His information was gleaned from conversations with employees of Golden Fortune. Baker has been the one running the business since G F was incapacitated by a stroke 10 years ago (Your client was in university then and took no part in the family business). Charlie occasionally dealt with suppliers when Baker was otherwise engaged, but since Charlie’s death two years ago, the business has been in Baker’s hands exclusively.