Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Law & Ethics Expert

Decorate Ltd (Decorate) is a large office interior design company which has ordinary shares only, 
listed on the Australian Stock Exchange. The majority of shares in Decorate are owned by Colour Ltd 
(Colour), who holds 85%. The remaining shares are held by Light Pty Ltd (Light)who holds 11%, Bright 
Ltd (Bright) who holds 3% and Julie McMahon, who holds 1%. 
Decorate has a brief constitution which states that the company will employ Julie McMahon as 
company solicitor. The constitution states that all other matters are to be dealt with under the 
replaceable rules in the Corporations Act. 
At a recent shareholder meeting, Colour indicated it would like to increase it's shareholding in 
Decorate to 100%. The directors of Decorate agree and believe it will result in large tax and 
administrative savings for Decorate. The directors of Decorate have also become aware that Light, 
originally an interior design company specialising in residential design, has recently established a 
new company, Office Design Pty Ltd (Office). Light owns 100% of the shares in Office and the new 
company specialises in interior design for offices. The directors of Decorate believe that Office is in 
direct competition to Decorate and are concerned. 
To assist Colour in gaining 100% ownership, the directors of Decorate propose a change to 
Decorates constitution as soon as possible, allowing the majority shareholder (Colour) to 
compulsorily acquire the shares of the minority shareholders (Light, Bright and Julie). It is proposed 
that Decorate will provide detailed information relating to the constitutional amendment to all 
shareholders. In addition, an independent valuer will assess a range of matters, including market 
value, to ensure a fair share price for the minority shareholders. 
Bill, the managing and sole director of Light indicates that he will not support the amendment and 
Light will take legal action against Decorate to stop the amendment if necessary. He asks the other 
minority shareholders (Bright & Julie) to join him in the legal action. 
Tony, the managing director of Bright tells Bill he and his board will not support the amendment to 
the constitution and will join in the legal action. However, the shareholders of Bright disagree and 
have repeatedly expressed their desire to sell the shares in Decorate and believe the amendment to 
the constitution is a good opportunity to do so. 
Julie McMahon informs Bill she is not sure if she supports the amendment or not. She is having 
financial difficulties and would like to sell her shares in Decorate but is concerned if she does, she 
can no longer rely on the clause in the constitution stating she is the company solicitor. 
With reference to legal authority discuss the legal implications for Decorate Ltd, Colour Ltd, Light 
Pty Ltd, Bright Ltd and Julie McMahon. 
The parties involved DO NOT require any information on statutory member remedies or takeovers 

Required minimum-1 page

Business Law & Ethics, Finance

  • Category:- Business Law & Ethics
  • Reference No.:- M948539

Have any Question? 


Related Questions in Business Law & Ethics

Balancing goal attainment and ethicstoday probably more

Balancing Goal Attainment and Ethics Today probably more than ever before, all departments of an organization, as well as any associated internal processes, are required to contribute to organizational goals designed to ...

Question 1 the seller can recover the purchase price for

Question 1 The seller can recover the purchase price for the goods only under certain circumstances, including when: The buyer accepts, but fails to pay for the goods. The goods are destroyed after risk of loss passes to ...

A 30 pages long double space talk about the inter american

A 30 pages long double space talk about "the Inter American Court of Human Right" and "Commission". It must be written in an easy language. I have 8 pages talk about the Commission.

In a 3- page analysis paper address the following describe

In a 3- page analysis paper, address the following: Describe the type of service you have selected. Briefly explain the related laws that govern the practice of the selected service. Discuss the specific ethical standard ...

Question 1 because they were often at war ambitious

Question 1: Because they were often at war, ambitious European monarchs desperately needed revenues. Some of them started calling assemblies of notables to levy taxes. In return for their "power of the purse," these asse ...

Text book - introduction to law enforcement an insiders

Text Book - INTRODUCTION TO LAW ENFORCEMENT AN INSIDER'S VIEW, FOURTH EDITION by William G. Doerner Chapter 1 - Early Efforts At Policing 1) Research the POST Minimum Standards to be a law enforcement officer in your sta ...

Business law written assessment -case study 1saber a

BUSINESS LAW WRITTEN ASSESSMENT - Case Study 1: Saber, a business student at CQU, walked into his local game store and saw a copy of the latest game, Marsattack: Metal Squad, with a price tag that said "$6.99". Saber kne ...

Assignment senior seminar projectyou chose correctional

Assignment: Senior Seminar Project You chose CORRECTIONAL FACILITIES a topic area and problem or challenge within that area. Throughout this course, you have researched the dynamics of the problem. The final piece of you ...

As this class draws to an end you covered a vast amount of

As this class draws to an end, you covered a vast amount of material pertaining to business law. From the classifications of law, contract formation, illegal agreements and various types of property, to business ethics, ...

Ethics papers -write a 1400- to 1750-word paper in which

Ethics papers - Write a 1,400- to 1,750-word paper in which you analyze the relationship between ethics and professional behavior in the administration of criminal justice. Explain the role of critical thinking with rega ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro