LOBOFinal Exam 2
FINAL EXAMINATION SPRING SESSION 2008
SCHOOL OF LAW
Student Family Name:
Student Given Names:
Student Number:
Course:
Unit Name (In Full): LAW OF BUSINESS ORGANISATIONS
Unit Number: 200183
Time Allowed: 3 (THREE) HOURS plus 10 (TEN) minutes reading time.
Number of Questions: 3 (THREE)
Total Number of Pages: 4 (FOUR)
Lecturer's Name: DR MASUDUL HAQUE, MARGARET HYLAND
INSTRUCTIONS
PLEASE READ CAREFULLY BEFORE PROCEEDING
1 Write your name and student number on the top of this examination paper and on ALL answer booklets.
2 This is an OPEN book examination. You can only use your prescribed text book and the Corporations Act 2001. No other materials are allowed.
3 The examination is out of 100. You must answer all 3 (three) questions and their parts. Marks are indicated for each question.
4 Answer each question in a separate answer booklet.
DO NOT TAKE THIS PAPER FROM THE EXAMINATION ROOM
Answer all parts of all 3(three) questions. You must refer to statute and decided cases (as applicable) to support your arguments.
Question 1 (55 marks)
Jack, Tom and Mary are executive directors of Photolab Ltd. Jack owns 8% of the shares, Tom 15% and Mary 7%. 15% of the shares are owned by 700 shareholders and the remaining 55% shares are owned by Photoproductions Ltd. Although Tom has never been formally appointed as managing director of the company, he has assumed that role and the other directors allow him to do so. The Board was aware that Tom’s business card described him as the managing director of Photolab Ltd. Often Tom entered into contracts on behalf of the company binding the company up to $1 million dollars without seeking the prior approval of the board. The company, however, always honoured these contracts.
Photolab Ltd is a subsidiary of Photoproductions Ltd. Tom is also a director of Photoproductions Ltd. On 5 April 2001, Tom entered into negotiations with Photoproductions Ltd, whereby it was agreed that Photolab Ltd
SCHOOL OF LAW
Student Family Name:
Student Given Names:
Student Number:
Course:
Unit Name (In Full): LAW OF BUSINESS ORGANISATIONS
Unit Number: 200183
Time Allowed: 3 (THREE) HOURS plus 10 (TEN) minutes reading time.
Number of Questions: 3 (THREE)
Total Number of Pages: 4 (FOUR)
Lecturer's Name: DR MASUDUL HAQUE, MARGARET HYLAND
INSTRUCTIONS
PLEASE READ CAREFULLY BEFORE PROCEEDING
1 Write your name and student number on the top of this examination paper and on ALL answer booklets.
2 This is an OPEN book examination. You can only use your prescribed text book and the Corporations Act 2001. No other materials are allowed.
3 The examination is out of 100. You must answer all 3 (three) questions and their parts. Marks are indicated for each question.
4 Answer each question in a separate answer booklet.
DO NOT TAKE THIS PAPER FROM THE EXAMINATION ROOM
Answer all parts of all 3(three) questions. You must refer to statute and decided cases (as applicable) to support your arguments.
Question 1 (55 marks)
Jack, Tom and Mary are executive directors of Photolab Ltd. Jack owns 8% of the shares, Tom 15% and Mary 7%. 15% of the shares are owned by 700 shareholders and the remaining 55% shares are owned by Photoproductions Ltd. Although Tom has never been formally appointed as managing director of the company, he has assumed that role and the other directors allow him to do so. The Board was aware that Tom’s business card described him as the managing director of Photolab Ltd. Often Tom entered into contracts on behalf of the company binding the company up to $1 million dollars without seeking the prior approval of the board. The company, however, always honoured these contracts.
Photolab Ltd is a subsidiary of Photoproductions Ltd. Tom is also a director of Photoproductions Ltd. On 5 April 2001, Tom entered into negotiations with Photoproductions Ltd, whereby it was agreed that Photolab Ltd