Company Law- Oppression

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

AMY258852

Member
12 October 2019
2
0
1
Hey im just looking for a little help in a company law question, I know s232 &s234 in the corporations act come into play. Can anyone provide similar cases and there outcomes?

Shorty and Shifty set up a company called Simpleton Ltd. Through the business organisation Simpleton Ltd, Shorty and Shifty raised shareholder funds to purchase a Goldmine from Façade Ltd. The Goldmine was long since past its best and most productive, but Shorty and Shifty paid the market rate that would have applied to an active mine, in its prime. Some time after the purchase, Shorty and Shifty left the jurisdiction. After they mysteriously departed, the minority shareholders of Simpleton Ltd discovered that Shorty and Shifty were the owners of Façade Ltd.



The minority shareholders of Simpleton Ltd seek your advice as to what action they can take in relation to their rights and the actions of the directors. In advising the shareholders, discuss whether this action provides a role for ASIC and, if so, why that is important. Briefly consider the remedies that are available in this case and whether the type of company influences the remedies to be sought. Would your answer differ if Shorty and Shifty were not the owners of Façade Ltd and if they had not left the jurisdiction? Why?
 

Rob Legat - SBPL

Lawyer
LawTap Verified
16 February 2017
2,437
510
2,894
Gold Coast, Queensland
lawtap.com
Here’s a hint. Go to those sections in Austlii, and then click on the note up link on the right side of the screen. That will give you a list of cases that cover those sections.