LAWS301 Corporate Law 2013 S3 INDIVIDUAL ASSIGNMENT (20%) Nimit, Deepa, Shang and Libo propose to create an insurance company, Australasia Insurance Glory Pty Ltd (Glory). For this purpose, Nimit and Deepa were in charge of registering the company with ASIC, while Libo was asked to find suitable premises for the business. Shang is not involved in the creation of the company. However, there is an understanding that Shang will receive $6,000 from the creation of the company.
LAWS301 Corporate Law 2013 S3 INDIVIDUAL ASSIGNMENT (20%) Nimit, Deepa, Shang and Libo propose to create an insurance company, Australasia Insurance Glory Pty Ltd (Glory). For this purpose, Nimit and Deepa were in charge of registering the company with ASIC, while Libo was asked to find suitable premises for the business. Shang is not involved in the creation of the company. However, there is an understanding that Shang will receive $6,000 from the creation of the company. Before the registration of the company is completed, Libo entered into a contract to lease the premises from Landlord Ltd for $4,000 a month. The contract was signed by Libo, on behalf of Australasia Insurance Glory Pty Ltd. Two weeks later, the company is formed and the board of directors of the company consists of Nathan (as managing director), Nimit (as non--executive director), Max (as chairman) and Mitra (as non--executive director). Libo presents the contract to the board. However, the board does not wish to be bound by the contract because the company can lease the same premises for $1,500 a month. Further, the board of directors discovered that Shang and Deepa made a profit of $50,000 each from the creation of the company. This amount was not declared to the board of directors. The …
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LAWS301-Assig….pdf