Short Answer Questions:
Provide a brief answer including the specific sections and sub-sections that apply under the Corporations Act 2001 (Cth). DO NOT use ILAC method to answer.
(a) On 1 February 2012, Mr Lawson was appointed as an administrator of Gogo Pty Ltd by the passing of a resolution by a majority of the directors of the company. Upon appointment, Mr Lawson convened the creditors’ first meeting on 4 February 2012.
Is this a valid meeting?
(b) The creditors of RedHot Pty Ltd (Redhot) appointed Mrs Sherman as the receiver to take possession of the secured property, sell it and use the proceeds to repay the secured debt owed by the company. The receiver borrowed $42,000 from Westpac bank during his appointment; however, there were insufficient funds available from the secured assets realisation to completely pay the debt, so that a shortfall exists. The receiver argued that the Managing Director of Red Hot must pay the shortfall.
Does the Managing Director of RedHot have to pay the debt?
(c) The Scottish Co-operative Wholesale Society Ltd (Scottish Co-op) registered a new company called ‘Scottish Textile & Manufacturing Co Ltd’ (Textile) to manufacture rayon cloth. State licensing was required and experienced managers were needed in order to obtain a licence. Dr Meyer and Mr Lucas were managing directors and shareholders of Textile, although, the Scottish Co-op held the majority of the company's shares and appointed three other directors to the board. The remaining three directors were also directors of Scottish Co-op. In 2012, the licensing system was terminated by the government. Scottish Co-op used its majority of votes to transfer the entire business to a branch of the Co-op. Scottish Co-op also cut off the supply of raw materials to Textile. Textile could not continue, no profits were made and its share value crashed. Mr Meyer and Mr Lucas were helpless.
Advise Mr Meyer and Mr