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LAW220 - Business Organisations Law

Table of Contents
Subject Summary ...................................................................................................................2
Subject Coordinator ...............................................................................................................2
Subject Coordinator ..................................................................................................2
Email ..........................................................................................................................2
Phone .........................................................................................................................2
Campus ......................................................................................................................2
Building/Room number ............................................................................................2
Consultation procedures ..........................................................................................2
Subject Overview....................................................................................................................2
Abstract......................................................................................................................2
Learning outcomes....................................................................................................3
Subject content .........................................................................................................3
Key subjects...............................................................................................................3
Subject Schedule & Delivery ..................................................................................................3
Prescribed text...........................................................................................................3
Class/tutorial times and location .............................................................................4
Schedule ....................................................................................................................4
Learning materials.....................................................................................................5
Learning, teaching and support strategies ..............................................................6
Recommended student time commitment .............................................................7
Assessment Items ...................................................................................................................7
Essential requirements to pass this subject.............................................................7
Items ..........................................................................................................................7
Problem questions.......................................................................................7
Problem questions 2 ..................................................................................14
Final Exam ..................................................................................................20
Assessment Information ......................................................................................................25
Academic integrity ..................................................................................................25
Referencing..............................................................................................................25
How to submit your assessment items ..................................................................25
Online submission process........................................................................26
Postal submission process ........................................................................26
Hand delivered submission process .........................................................26
Extensions................................................................................................................26
How to apply for special consideration..................................................................27
Penalties for late submission..................................................................................27
Resubmission ..........................................................................................................28
Feedback processes ................................................................................................28
Assessment return...................................................................................................28
Student Feedback & Learning Analytics ..............................................................................28
Evaluation of subjects .............................................................................................28

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Changes and actions based on student feedback .................................................29
Learning analytics ...................................................................................................29
Services & Support ...............................................................................................................29
Develop your study skills ........................................................................................29
Library Services .......................................................................................................30
CSU Policies & Regulations...................................................................................................30
Subject Outline as a reference document..............................................................30

Subject Summary
LAW220 - Business Organisations Law
Session 2 2018
Faculty of Business, Justice and Behavioural Sciences
School of Accounting and Finance
Distance Mode
Credit Points 8

Welcome to a new session of study at Charles Sturt University. Please refer to the University's
Acknowledgement of Country. (http://student.csu.edu.au/study/acknowledgement-of-country)

Subject Coordinator
Subject Coordinator Bede Harris
Email beharris@csu.edu.au
Phone (02) 60519760
Campus Albury
Building/Room number 764/115

Consultation procedures

The quickest and most effective way to contact me is via email, as I check emails several times a
day, even when I am away from my phone. Please include the subject code (LAW220) and your
name and student ID in the subject line of your email – it really helps to know which class you
belong to, before I respond to your query. Please also make sure to check the Discussion and the
Announcements headings on the Interact site, as I will communicate important information
relating to assignments etc using these features of Interact.

Subject Overview

Abstract

This subject examines the difference between various types of business organisation before
focusing on corporations law, including the way in which corporations are formed, rules

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regulating internal relationships within corporations, relationships with outsiders, the duties of
directors and other officers, fundraising and the termination of corporations with a particular
focus on liquidation

Learning outcomes

On successful completion of this subject, you should:

• be able to identify the different types of business organisation and the law regulating
them;
• be able to explain the characteristics of different business organisations;
• be able to explain the rules of law regulating the internal relationship between the
participants in business organisations and between the organisation and third parties;
and
• be able to apply the law to legal problems.

Subject content

The subject content is contained in the Schedule below.

Key subjects

Passing a key subject is one of the indicators of satisfactory academic progress through your
course. You must pass the key subjects in your course at no more than two attempts. The first
time you fail a key subject you will be at risk of exclusion; if you fail a second time you will be
excluded from the course.

The Academic Progress Policy (https://policy.csu.edu.au/view.current.php?id=00250) sets out


the requirements and procedures for satisfactory academic progress, for the exclusion of
students who fail to progress satisfactorily and for the termination of enrolment for students
who fail to complete in the maximum allowed time.

Subject Schedule & Delivery

Prescribed text

The textbooks required for each of your enrolled subjects can also be found via the Student
Portal Textbooks (http://student.csu.edu.au/study/study-essentials/textbooks) page.

Harris, J, Hargovan, A and Adams, M, (2018) Australian Corporate Law, 6th ed, Sydney: Lexis-
Nexis.

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Class/tutorial times and location

Your class times can be found at Timetable @ CSU (http://timetable.csu.edu.au/), noting that a
timetable may not apply to this online offering. Find out how to use Timetable @ CSU via the
Student Portal Class Timetable (http://student.csu.edu.au/study/study-essentials/timetable)
page.

Schedule

Schedule

Learning Activities – please note the learning activities associated with each Module, listed in the
following schedule, comprise:

1. Reviewing the following:

- The notes in Interact Modules.

- The Module video, noting there are links to these in the Interact Modules as well as a separate
list of videos under the Resources tag.

2. Completing the following:

- The textbook readings as identified in the schedule below.

- Attempting problem questions at the end of each Module and posting answers on the forum - I
encourage you to work collaboratively in doing this so as to maximise opportunities for shared
learning.

- Commenting on fellow students' answers posted on the forum.

Module titles
Week Commencing and Learning activities - readings from text
numbers

Introduction
to business
1 9 July organisations Text: Ch 3.1 - 3.57
(1) / The law
of agency (2)

Partnership
2 16 July Text: Ch 4.1 - 4.54
(3)

The concept
of
3 23 July Text Ch 2.1-2.22, 3.57-3.90, 5, 7.12-7.15, 8.
incorporation
(4)

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Module titles
Week Commencing and Learning activities - readings from text
numbers

Company
liability (5) /
Corporate
4 30 July governance - Text: Ch 7.4, 7.6, 7.16-7.23, 6
the
constitution
(6)

Members'
meetings (7)
5 6 August Text: Ch 12

Members'
6 13 August Text: Ch 19 Assignment 1 due
remedies (8)

Mid-session
7 20 August break

Mid-session
8 27 August
break

9 3 September Directors (9) Text: Ch 14

Directors'
10 10 September Text: Chs 15 - 18
duties (10)

Directors'
11 17 September duties Text: Chs 15 - 18 Assignment 2 due
(contd) (10)

Corporate
finance:
12 24 September shares and Text: Ch 10.1-10.12, 11.1-11.6, 20.23-20.34, 21.26-21.28
debentures
(11)

Fundraising
13 1 October Text: Ch 9
(12)

Liquidation
14 8 October Text: Ch 22.1 – 22.25 and Revision
(13)

Learning materials

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Details of learning materials that support your success in this subject can be found in the
Interact2 Subject Site.

Learning, teaching and support strategies

On-line learning materials

The learning materials for this subject are available in online Modules accessed through the
subject's Interact2 site. Please note Firefox is the CSU preferred browser to be used for Interact2.
You should check the Interact2 Site at least weekly for postings, announcements and other
resources that will assist your studies or additional information and resources vital to your
success in the subject. I will put items of interest from the media in the resources folder from
time to time when matters relating to corporations law are reported.

The best way to proceed with this subject is to read the material and watch the videos contained
in the Modules (listed in a column on the left-hand side of the Interact2 home page for the
subject), and then to read the relevant pages in the textbook which are given at the start of each
Module.

Problem-exercises

A vital part of your engagement with the subject is the problem-type questions which appear at
the end of each module. These are very similar in style to those contained in the assessments
and the exam. I invite you to post answers to these questions on the relevant forum in the
Discussion Board tool. I will give feedback to all postings. By the end of the Session I hope that
we have a bank of questions + feedback which you can access and use for revision purposes. By
posting answers on the Discussion Boards and commenting on each other's answers, you will
have an opportunity to interact with each other.

Synchronous communication opportunities

I will make available opportunities for synchronous communication with me during the Session
using chat and / or On-Line Meetings. These will have a particular focus on building on the
problem-solving skills you will have been introduced to in LAW110 and which are the focus of the
two assessments and the exam. I will also provide opportunities to discuss the assignments and
the exam before their due dates, and to focus on the referencing system used for answering
problem questions.

Importantly, these synchronous sessions will also provide an opportunity for you to interact not
only with me but also with each other.

I will advise the precise timing of the meetings early in the Session. The first meeting will occur in
Week 2.

Engagement

In order to assist you in your studies, I will use data which measures individual student access of
the subject's Interact2 site to determine levels of engagement over the first three weeks of the
Session. Where I believe you may need assistance with engaging with the subject, I will contact

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you to see what assistance I can offer.

Recommended student time commitment

Each week you should spend around 9 - 11 hours studying this subject – obviously some weeks
may require more time than others depending on how you work – but the following is a guide for
your information:

• Reading Modules: 4 hours


• Preparing answer to problem question at the end of the Module(s) for the week: 2 hours
• Contributing to Discussion Boards and interacting with each other: 1 hour
• Checking Interact2 site and reading updates 1 hour
• Preparation of up-coming assessment items: 2 hours

The total time that you would spend during the Session would be between 140 and 160 hours.

Assessment Items

Essential requirements to pass this subject

You must obtain at least 50% in both the examination and the total mark in order to pass this
subject. You must pass the exam to pass the subject.

To be eligible for the grade of AA or AE you must have submitted all assessment items in the
subject, including the final exam. If you choose not to complete an assessment item or do not sit
the final exam you cannot be offered an AE or AA.

Items

Item No. Title Value Due Date* Return Date**


1 Problem questions 20% 13-Aug-2018 03-Sep-2018

2 Problem questions 2 20% 17-Sep-2018 07-Oct-2018

3 Final Exam 60% To be advised


* Due date is the last date for assessment items to be received at the University
** Applies only to assessment items submitted by the due date

Assessment item 1

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Problem questions

Value: 20%
Due Date: 13-Aug-2018
Return Date: 03-Sep-2018
Length: 2000 words
Submission method options: EASTS (online)

Task

This assignment requires you to answer two problem-type questions using the ILAC (Issues,
Law, Application, Conclusion) format, a worked example of which is in the Resources folder.

Please note that the word limit of 2 000 words is a total for both questions (ie, it is not 2 000
words for each question), including references in the text but excluding the bibliography at
the end. This is an absolute limit, and a 1 mark penalty will be applied if your assignment
exceeds 2000 words. You should be able to answer both questions in far less than 2 000
words.

** In this subject, assignments are marked on-line, using an adapted MS Word programme.
You therefore MUST submit your assignment in Word format, NOT as a PDF document. If
you submit in PDF it will not be able to be marked.**

## If you think you may need and extension for this assignment, please read the rules
relating to extensions in the Subject Outline before applying for an extension. ##

Question 1 (10 marks)

Steve Jones is an entrepreneur with a variety of business interests. He learned of a gold deposit in
Western Australia. Because he was anxious to exploit the opportunity, he flew to Perth on 6 July
and entered into a contract to buy a drilling machine from Thor Mining Machinery Ltd, to be used
to drill a test shaft. The contract specified that the drill would be delivered, and payment of the $
125 000 price would fall due, on 30 July. He signed the contract as follows:

Steve Jones, on behalf of WA Gold Exploration Ltd.

WA Gold Exploration Ltd was registered as a company by ASIC on 10 July, with Steve as 60%
shareholder. He and the other shareholders met on 11 July, to elect a board of five directors.
Steve himself was not elected to the board, because although he had originally discovered the
opportunity, he had no experience in mining operations, and so did not want to be involved in
day to day running of the company.

On 14 July, the board signed a contract to purchase a fleet of five ore trucks from Volvo Trucks
(Australia) Ltd, costing a total of $ 500 000, to be delivered on 30 September. The board also
established a sub-committee to determine the company’s technical needs, and on 25 July the
board accepted the committee’s recommendation that the company buy a drill from United
Mining Machinery Ltd for $ 100 000. The board also contacted Thor Mining Machinery Ltd and told
it that it would not be taking delivery of the drill or paying for it.

Unfortunately, in mid-September it became clear that the gold deposit was not as large as hoped,

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and the board ceased trading on the basis that the company had only $ 400 000 in assets and
had accumulated $ 2 million in liabilities. The company is therefore unable to pay for the trucks.
Steve, who has personal assets of $ 1 million, has now been sued for breach of contract by both
Thor Mining Machinery Ltd and Volvo Trucks (Australia) Ltd. Assume you are his legal advisor.
Prepare advice for him citing full legal authority, as to what his legal position is.

Question 2 (10 marks)

Simon, George, Sara and Mary were all employed by different IT companies. However, they felt
that they could do better if they went into business themselves. They pooled their available cash
and drew up a partnership agreement, which stated that each partner had authority to enter into
transactions on behalf of their firm, which they called Computer Solutions. The firm operates in
Sydney and provides a service of storing data for customers. The agreement states that partners
have authority to enter into contracts of up to $ 10 000, but that any contract for more than that
must be approved unanimously by all partners.

George, Sara and Mary approach you for legal advice in relation to two transactions entered into
by Simon, who had acted without referring back to the partners. One was for a 50GB hard-drive,
bought by Simon on behalf of Computer Solutions, from Sunstar Computer Hardware Ltd, costing
$ 15 000. The other was for a second-hand ute, costing $ 9 000, which Simon ordered for the firm
from You Beaut Ute Ltd, on the basis that the partnership should branch into the freight business
– an idea that the other partners had previously rejected. Sara had refused to accept delivery of
both the hard drive and the ute and the partnership has been sued by both Sunstar Computer
Hardware Ltd and You Beaut Ute Ltd. Give them legal advice, referring to statutory and case-law
authority.

**Please check that your assignment complies with the rules contained in the Style Guide
before you hand it in.**

Rationale

This assessment task will assess the following learning outcomes:

• be able to identify the different types of business organisation and the law regulating
them;
• be able to explain the rules of law regulating the internal relationship between the
participants in business organisations and between the organisation and third parties.
• be able to apply the law to legal problems.

And more specifically:

• Your knowledge of the law relating to the concept of incorporation.


• Your knowledge of the law of partnership.
• Your ability to complete an assessment task which is relevant to professional practice
and the giving of advice in the workplace.

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Marking criteria and standards

CRITERIA HD DI CR P FL

Students are To meet this level To meet this To meet this To meet this At this level
required to you will achieve a level you will level you will level you will you will
answer two cumulative mark achieve a achieve a achieve a obtain a
problem type of 85-100%. A cumulative cumulative cumulative mark of
questions in mark in this mark of mark of mark of 0-49%. A
order to range indicates 75-84%. A 65-74%. A 50-64%. A mark in this
demonstrate: that a student: mark in this mark in this mark in this range
range range range indicates
indicates that indicates that indicates that that a
a student: a student: a student: student:

Identification Correctly Correctly Identifies and Identifies Identifies no


of relevant identifies all legal identifies all correctly some legal relevant
legal issues issues and legal issues formulates issues, with issues or
formulates them and most major some errors only a few of
clearly with formulates legal issues, in them. Some
consideration of them with taking into formulation. of these may
all links to consideration consideration Considers be unclearly
relevant law with of links to most links to some links to formulated.
no errors. relevant law, relevant law. relevant law. Considers
with only few links to
minor errors. relevant law.

Explanation Provides a Provides an Provides an Provides a Provides


of law, citing complete explanation explanation basic incorrect or
relevant explanation of of almost all of most explanation limited

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legal the law with no points of the points of law of the law, explanation
authority errors. Explains law with few with few but of the law
all relevant legal errors, errors, with some using little
authority. substantiated substantiated errors, legal
by most of the by citation of substantiated authority.
relevant legal most of the by limited
authority, relevant legal legal
with only authority authority.
minor errors. with few
errors.

Application of Applies the law to Applies the Applies the Makes a basic Paper does
legal the facts so as to law correctly law correctly attempt to not correctly
principles to address all issues to the facts so to most apply the law apply law to
the facts with no errors. as to address issues arising to the facts, the facts and
Argument all issues, from the but applies / or applies
discusses with only facts, but wrong law incorrect
linkages between minor errors. with some and / or law. May be
facts and the law Argument errors. contains descriptive,
and considers discusses Argument significant rather than
counter- linkages summarises errors in the putting
arguments. between facts application of application. forward a
Conclusion and the law. the law. Resultant reasoned
clearly draws Conclusion Conclusion answer is argument.
together draws summarises incomplete.
arguments. arguments arguments.
together.

Compliance Uses Style Guide Uses Style Use of Style Limited or Poor,
with the Style comprehensively, Guide Guide, with inconsistent inconsistent
Guide and accurately and accurately some errors use of Style or inaccurate
overall consistently. Uses and with only or Guide. Some use of Style
structure. ILAC model. minimal lapses. Uses attempt at Guide. Poorly

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Extremely well errors. ILAC model use of ILAC structured.
structured and Uses ILAC and is clearly model and in Inadequate
organised, with model. Well structured. structuring or no use of
one main structured, answer but paragraphs.
argument with some with errors. May have
introduced per differentiation disregarded
paragraph, of arguments the ILAC
supported by between model.
well-written paragraphs.
supporting
sentences.

Written Uses appropriate Uses Uses Significant Poor


expression academic writing appropriate appropriate spelling, grammar,
and editing. which is formal, academic academic grammar and spelling and/
impersonal and writing which writing which punctuation or
which contains is formal, and is formal and errors but the punctuation.
no spelling, impersonal impersonal, paper is Paper gives
grammar and with only very with a few readable and no evidence
punctuation minor spelling, demonstrates of having
errors. Paper spelling, grammar and some been proof-
demonstrates grammar and punctuation attempt at read.
careful punctuation errors. Paper proofreading.
proofreading. errors. Paper demonstrates
demonstrates evidence of
careful proofreading.
proofreading.

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Presentation

Please comply with the following rules:

1. Do not re-state the question.


2. Use in-text referencing. Do not use footnotes.
3. Names of statutes should be italicised, and followed by the jurisdiction not in italics, for
example: Acts Interpretation Act 1901 (Cth). Note the abbreviation for ‘Commonwealth’ is
‘Cth’ not ‘Cwlth’.
4. The names of the parties must be italicised, but the citation must not, for example: Smith
v Jones (1967) 345 CLR 34.
5. An in-text reference to a book should be structured as follows: (Latimer, 2010, p. 75).
There is no need to put the author’s initial. Note the positioning of brackets, stops and
commas. You use ‘pp.’ only if referring to more than one page. If you are referring to a
book with more than one author, the in-text reference would be as follows: (Smith et al,
2002, p. 78).
6. An in-text reference to the subject's Modules should be structured in brackets as per the
following example - obviously you will alter the reference depending on the subject, year
of study and Module number : (CSU LAW220 Modules, 2015, Topic 7).
7. Do not start a new line simply because you are starting a new sentence.
8. Be careful of apostrophes: director's = of a director, directors' = of many directors,
directors = many directors. Also particularly prevalent is confusion between its (it
possessive) and it's (contraction of "it is").
9. The following words always start with a capital letter: Commonwealth, State, Act, Bill,
Regulation, Constitution, Parliament. Do not unnecessarily capitalise other words.
10. One should not use terms such as can't, won't, don't and shouldn't, neither should one
use "ie" and "eg" in formal writing.
11. A sentence must always begin with a full word and a capital letter – so a sentence would
start ‘Section 55 says…’, not ‘S 55 says…’ or ‘s 55 says…’
12. Start each paragraph on a new line, and leave a clear line gap after the preceding
paragraph.
13. You must put page numbers on your assignment.
14. Quotations, and excerpts from legislation should be indented from the rest of the text in
a separate paragraph. The text in quotations should not be in italics.
15. You must end your assignment with a bibliography that is divided into three separate
parts, listing statutes, cases and books / articles / on-line Modules.
16. A listing of a book in a bibliography should appear in accordance with the following
format: Latimer, P (2010). Australian Business Law, 29th ed, North Ryde: CCH. If listing a
book with multiple authors, do so as follows: Heilbron, G, Latimer, P, Nielsen, J and
Pagone, T (2008). Introducing the Law, 7th ed, North Ryde: CCH.
17. When listing statutes at the end of your assignment you should conform to the format:
Acts Interpretation Act 1901 (Cth). List the statute only once – you do NOT list individual
section numbers relied on. You should not list textbooks as the source of Acts – the Act
itself is its own source.
18. When listing cases conform to the format: Gordon v Richards (1976) 123 CLR 32.
19. When listing article conform to the format: Jones, J 'The new analysis of law' (2010) 4
Journal of Recent Law 34.
20. When listing CSU Modules conform to the following format: CSU LAW220 Modules.

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21. Make sure that your sentences are grammatical – it may be useful to read your
assignment out loud if you have any doubts about this.

PLEASE NOTE THAT YOU WILL LOSE MARKS IF YOU DO NOT COMPLY WITH THIS STYLE GUIDE.
I WILL REFERENCE NON-COMPLIANCE BY ANNOTATING YOUR ASSIGNMENT “2”, “5” ETC TO
INDICATE WHICH OF THE ABOVE RULES NUMBERED
1 – 21 YOU HAVE BREACHED.

Assessment item 2

Problem questions 2

Value: 20%
Due Date: 17-Sep-2018
Return Date: 07-Oct-2018
Length: 2000 words
Submission method options: EASTS (online)

Task

This assignment requires you to answer two problem-type questions using the ILAC (Issues,
Law, Application, Conclusion) format, a worked example of which is in the Resources folder.

Please note that the word limit of 2 000 words is a total for both questions (ie, it is not 2 000
words for each question) including references in the text but excluding the bibliography at
the end. This is an absolute limit, and 1 mark will be deducted if your assignment exceeds 2
000 words. You should be able to answer the questions in far less than 2 000 words.

**In this subject, assignments are marked on-line, using an adapted MS Word programme.
You therefore MUST submit your assignment in Word format, NOT as a PDF document. If
you submit in PDF it will not be able to be marked.**

## If you think you may need an extension for this assignment, please read the rules
relating to extensions in Appendix 1 of this Subject Outline before applying for an
extension. ##

Question 1 [10 marks]

Kruger is Heavy Machinery Sales Manager of JCI Ltd. He has frequently negotiated and signed
contracts on behalf of JCI Ltd with Oppenheimer, Managing Director of Anglo-American
Corporation Ltd. Kruger and Oppenheimer have been in negotiations over the supply of an ore
smelter by JCI to Anglo-American. On Friday 5 July at 10.00 am Kruger phones Oppenheimer and
says “We will offer to sell you the ore smelter for $ 3.5 million. I’ll be at your office at 3pm to sign
a contract.”

At 1 pm, Oppenheimer is having lunch at the Rand Club with Rhodes, who is another executive
of JCI. During the lunch Rhodes says “Things are awful at JCI. Kruger has been making too many

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mistakes this year, his department hasn’t been trading profitably, and I heard he was going to get
a nasty surprise at our lunchtime Board meeting. Frankly, I can’t see him surviving”. Oppenheimer
goes back to his office and mentions the lunchtime conversation to Jameson, a fellow Anglo-
American executive, saying that he (Oppenheimer) thinks that Kruger may have been ousted.
Jameson says "Look, we're getting a good deal here, don't worry about what is going on at JCI".
At 3pm Kruger arrives and signs the deal to sell the machinery to Anglo American for $ 3.5 million.

However on Monday the Financial News carries an article headed “JCI Heavy Machinery Sales
Manager Fired at Board Meeting Last Friday”. Anglo American has tendered a cheque to JCI for
$ 3.5 million, and has demanded delivery of the smelter, but JCI refuses to deliver it, saying that
Kruger had no authority to sell the smelter because he had been fired at 1.30pm. Advise JCI as to
their legal position, citing statutory and case law authority.

Question 2 [10 marks]

John, Paul and Ringo and George are musicians who operate out of a garage in Melbourne. They
initially form a partnership, but then decide to incorporate, and register a company called New
Beatles Pty Ltd of which John, Paul and Ringo own 30% each and George owns 10%. The business
of the company is to play music, hold concerts and record CDs. All four brothers are also
directors. Things go well for a year, but then disputes occur. Ringo comes to you and asks you
advice in relation to the following:

Ringo has found out that a meeting of shareholders was held without giving notice to him and
that at the meeting an ordinary resolution to change the company logo from a silver guitar to a
red trumpet was agreed to by all his brothers. Ringo tells you that he objects to this step.

By another resolution – also agreed to by the other three brothers - the actual constitution of New
Beatles Pty Ltd was changed so as to insert a provision which limits the company’s activities to
Australia. Ringo tells you that he objects to this, as he believed the company should start touring
overseas.

Ringo also discovered that over the past couple of years Paul has been giving his (Paul’s) girlfriend
Sarah $ 500 per week from company funds, and that in total the company has suffered a loss of $
50 000 because of these payments. When Ringo raised this at a board meeting and proposed that
the company’s lawyers be asked to initiate action against Paul and Sarah to recover the money,
the other three directors voted against the proposal.

Finally, Ringo tells you that since he confronted his brothers about Paul’s conduct, they have
begun holding board meetings without telling him (Ringo).

Advise Ringo as to what remedies he can obtain in relation to the above, citing legal authority.
[You should assume, and therefore do not need to prove, that the payments by Paul to Sarah are
a breach of the duty to act in the best interests of the company under s 181 of the Corporations Act
2001 (Cth).]

**Please check that your assignment complies with the rules contained in the Style Guide
before you hand it in.**

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Rationale

This assessment task will assess the following learning outcomes:

• be able to identify the different types of business organisation and the law regulating
them;
• be able to explain the rules of law regulating the internal relationship between the
participants in business organisations and between the organisation and third parties.
• be able to apply the law to legal problems.

And more specifically:

• Your knowledge of the law relating to corporate liability in contract.


• Your knowledge of the law relating to members' meetings and members' remedies.
• Your ability to complete an assessment task which is relevant to professional practice
and the giving of advice in the workplace.

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Marking criteria and standards

CRITERIA HD DI CR P FL

Students are To meet this level you To meet this level you To meet this level you To meet this level At this level you will
required to will achieve a will achieve a will achieve a you will achieve a obtain a mark of
answer two cumulative mark of cumulative mark of cumulative mark of cumulative mark of 0-49%. A mark in this
problem type 85-100%. A mark in 75-84%. A mark in this 65-74%. A mark in this 50-64%. A mark in range indicates that a
questions in order this range indicates range indicates that a range indicates that a this range indicates student:
to demonstrate: that a student: student: student: that a student:

Identification of Correctly identifies all Correctly identifies all Identifies and correctly Identifies some Identifies no relevant
relevant legal legal issues and legal issues and formulates most major legal issues, with issues or only a few of
issues formulates them formulates them with legal issues, taking into some errors in them. Some of these
clearly with consideration of links to consideration most formulation. may be unclearly
consideration of all relevant law, with only links to relevant law. Considers some formulated. Considers
links to relevant law minor errors. links to relevant few links to relevant
with no errors. law. law.

Explanation of Provides a complete Provides an explanation Provides Provides a basic Provides incorrect or
law, explanation of the law of almost all points of an explanation of most explanation of the limited explanation of
citing relevant with no the law with few errors, points of law with few law, but with some the law using little
legal authority errors. Explains all substantiated by most errors, substantiated by errors, legal authority.
relevant legal of the relevant legal citation of most of the substantiated
authority. authority, with only relevant legal authority by limited legal
minor errors. with few errors. authority.

Application of Applies the law to the Applies the law correctly Applies the law Makes a basic Paper does not
legal principles to facts so as to address to the facts so as to correctly to most issues attempt to apply correctly apply law to
the facts all issues with no address all issues, with arising from the facts, the law to the facts, the facts and / or

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errors. Argument only minor errors. but with some but applies wrong applies incorrect
discusses linkages Argument discusses errors. Argument law and / or law. May be
between facts and the linkages between facts summarises contains significant descriptive, rather
law and considers and the law. Conclusion application of the errors in the than putting forward
counter-arguments. draws arguments law. Conclusion application. a reasoned argument.
Conclusion clearly together. summarises Resultant answer is
draws together arguments. incomplete.
arguments.

Compliance with Uses Style Guide Uses Style Guide Use of Style Guide, with Limited or Poor, inconsistent or
the Style Guide comprehensively, accurately and with only some errors or inconsistent use of inaccurate use of
and overall accurately and minimal errors. lapses. Uses ILAC Style Guide. Some Style Guide. Poorly
structure. consistently. Uses Uses ILAC model. Well model and is clearly attempt at use of structured.
ILAC model. structured, with some structured. ILAC model and in Inadequate or no use
Extremely well differentiation of structuring of paragraphs. May
structured and arguments between answer but with have disregarded the
organised, with one paragraphs. errors. ILAC model.
main argument
introduced per
paragraph, supported
by well-written
supporting sentences.

Written Uses appropriate Uses appropriate Uses appropriate Significant spelling, Poor grammar,
expression and academic writing academic writing which academic writing which grammar and spelling and/ or
editing. which is formal, is formal, and is formal and punctuation errors punctuation. Paper
impersonal and which impersonal with only impersonal, with a few but the paper is gives no evidence of
contains no spelling, very minor spelling, spelling, grammar and readable and having been proof-
grammar and grammar and punctuation demonstrates read.
punctuation punctuation errors. errors. Paper some attempt at
errors. Paper Paper demonstrates demonstrates evidence proofreading.
demonstrates careful careful proofreading. of proofreading.
proofreading.

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Presentation

Please comply with the same rules of presentation contained in the Style Guide which appears
after the first assignment.

Assessment item 3

Final Exam

Value: 60%
Due Date: To be advised
Duration: 3 hours
Submission method options: N/A - submission not required/applicable

Requirements

Type

Open book exam: Students may take into the examination room any written materials they like,
including textbooks, the Study Guide, hand written and / or typed notes. Computers may not be
taken into the exam room.

Examination format

The examination paper in this subject will consist of two parts:

Part A has 5 short answer questions. Students must attempt all of these questions. Each question
is worth 3 marks.

Part B has 4 problem questions. Students must attempt 3 of these questions. Each question is
worth 15 marks.

Rationale

This assessment task will assess the following learning outcomes:

• be able to identify the different types of business organisation and the law regulating
them;
• be able to explain the characteristics of different business organisations.
• be able to explain the rules of law regulating the internal relationship between the
participants in business organisations and between the organisation and third parties.
• be able to apply the law to legal problems.

The purpose of the final examination is to assess you on all the learning outcomes of the subject.

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Marking criteria and standards

The short answer questions will be marked according to the following criteria:

CRITERIA HD DI CR PS FL

Students will be To meet this level you To meet this level you To meet this level To meet this level At this level you will
required to answer will attain a will attain a cumulative you will attain a you will attain a attain a cumulative
five short answer cumulative mark mark between cumulative mark cumulative mark mark between
theory and problem- between 85%-100% 75%-84% for this between 65%-74% between 50%-64% 0%-49% for this
type questions to for this section of the section of the for this section of the for this section of section of the
demonstrate their examination. A mark in examination. A mark in examination. A mark the examination. A examination. A mark in
understanding of this range indicates this range indicates in this range mark in this range this range indicates
legal concepts and that, in aggregate, you that, in aggregate, you indicates that, in indicates that, in that you have
principles and ability have demonstrated have demonstrated aggregate, have aggregate, you have demonstrated limited
to apply the law exceptional a comprehensive demonstrated a demonstrated a knowledge,
briefly and concisely knowledge, knowledge, sound knowledge, basic knowledge, understanding and
to a set of facts and understanding, and understanding, and understanding, and understanding, and ability across the
to reach a correct ability across a range ability across a range of ability across a range ability across the range of topics
conclusion on the of topics in this topics in this subject. of topics in this range of topics selected for
issue subject. subject. selected for examination in this
examinations in subject.
this subject

You must use the ILAC format when answering problem questions in the exam, but students do not need to comply with referencing requirements.
All that is required is citation of relevant sections of statutes and, when citing cases, the names of the parties.

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The problem questions will be marked according to the following criteria:

CRITERIA HD DI CR P FL

Students are To meet this To meet this To meet this To meet this At this level
required to level you will level you will level you will level you will you will
answer achieve a achieve a achieve a achieve a obtain a
problem type cumulative cumulative cumulative mark cumulative mark of
questions in mark of mark of of 65-74%. A mark of 0-49%. A
order to 85-100%. A 75-84%. A mark in this 50-64%. A mark in this
demonstrate: mark in this mark in this range indicates mark in this range
range indicates range that a student: range indicates
that a student: indicates that indicates that that a
a student: a student: student:

Identification Correctly Correctly Identifies and Identifies Identifies


of relevant identifies all identifies all correctly some legal no relevant
legal issues legal issues legal issues formulates most issues, with issues or
and formulates and major legal some errors only a few
them clearly formulates issues, taking in of them.
with them with into formulation. Some of
consideration consideration consideration Considers these may
of all links to of links to most links to some links to be
relevant law relevant law, relevant law. relevant law. Unclearly
with no errors. with only formulated.
minor errors. Considers
few links to
relevant
law.

Explanation Provides a Provides an Provides an Provides a Provides

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of law, citing complete explanation explanation of basic incorrect or
relevant explanation of of almost all most points of explanation limited
legal the law with no points of the law with few of the law, explanation
authority errors. Explains law with few errors, but with of the law
all relevant errors, substantiated by some errors, using little
legal authority. substantiated citation of most substantiated legal
by most of of the relevant by limited authority.
the relevant legal authority legal
legal with few errors. authority.
authority,
with only
minor errors.

Application of Applies the law Applies the Applies the law Makes a basic Paper does
legal to the facts so law correctly correctly to most attempt to not
principles to as to address to the facts issues arising apply the law correctly
the facts all issues with so as to from the facts, to the facts, apply law
no errors. address all but with some but applies to the facts
Argument issues, with errors. Argument wrong law and / or
discusses only minor summarises and / or applies
linkages errors. application of contains incorrect
between facts Argument the significant law. May be
and the law discusses law. Conclusion errors in the descriptive,
and considers linkages summarises application. rather than
counter- between arguments. Resultant putting
arguments. facts and the answer is forward a
Conclusion law. incomplete. reasoned
clearly draws Conclusion argument.
together draws
arguments. arguments
together.

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Material provided by the university

1 x 12 page answer book.

Material provided by the student

Writing materials.

Sample exam paper

You are encouraged to complete this subject's sample exam (https://doms.csu.edu.au/csu/file/


6d684444-5018-46fd-8063-c64526914c6c/1/LAW220%20Sample%20Exam.docx) in preparation
for the end-of-session exam.

Assessment Information

Academic integrity

Academic integrity means acting with honesty, fairness and responsibility, and involves
observing and maintaining ethical standards in all aspects of academic work. This subject
assumes that you understand what constitutes plagiarism, cheating and collusion. If you are a
new student we expect you to complete the modules called Academic Integrity at CSU.
(https://interact2.csu.edu.au/webapps/blackboard/execute/
courseMain?course_id=_16412_1&task=true&src=)

CSU treats plagiarism seriously. We may use Turnitin to check your submitted work for
plagiarism. You can use Turnitin to check for plagiarism (http://student.csu.edu.au/library/
integrity/referencing-at-csu/checking) in your assessments before submission.

Referencing

Referencing is an important component of academic work. All assessment tasks should be


appropriately referenced. The specific details of the referencing requirements are included in
each assessment task description. Get referencing style guides and help
(http://student.csu.edu.au/library/integrity/referencing-at-csu) to use for your assessments.

How to submit your assessment items

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Online submission process

Assignments 1 ansd 2 need to be submitted electronically to the CSU Assignment Section via
EASTS (Electronic Assignment Submission Tracking System). In order to access EASTS, click on
the EASTS link in the menu bar on the left hand side in the Interact 2 site. This will take you to the
EASTS site where you are provided with step-by-step instructions to guide you through the
online submission process. EASTS has a help function that will allow you to print out instructions
to assist you in this process if required.

A message will be sent to the email address, as recorded on the system under 'My Email',
confirming the receipt of your assessment task via EASTS.

Assignments must be submitted by EASTS and are due by midnight (AEST) of the date specified

All textual elements within an assessment must be submitted in a format that is readable by
Turnitin. Specific exceptions, where an assessment requires the insertion of image based
evidence of workings will be outlined in the context of the assessment. Students that
deliberately attempt to insert content of assessments in a format that is not readable by Turnitin
may be subject to Academic misconduct investigations.

Postal submission process

Postal submissions will not be accepted for any of the assessments required.

Hand delivered submission process

Hand delivered submissions will not be accepted for any of the assessments required.

Extensions

In order to ensure that other students who hand their assignments in on time are not
disadvantaged, and to enable me to comply with the requirement to return assignments to the
class within 15 working days, the following rules about extensions will be strictly enforced
equally in relation to all students:

1. Extensions cannot be granted for on-line tests, as these have to be done within a specific
time frame, after which the answers are released to the class automatically.

2. Computer problems (such as the speed of your computer and the time it may take you to
upload assignments onto EASTS) and normal work-related pressures and family
commitments do not constitute sufficient reasons for the granting of extensions.

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3. If it becomes obvious that you are not going to be able to submit an assignment on time
because of an unforseen event, you must submit your request for an extension to the
Subject Coordinator by email prior to the due date.

Requests for extensions will not be granted on or after the due date so you must make
sure that any extension is requested prior to the day on which the assignment is due.

You are expected to do all you can to meet assignment deadlines. Work and family-
related pressures do not normally constitute sufficient reasons for the granting of
extensions or incomplete grades.

4. If you apply for an extension, you may be asked to email your lecturer on what you have
done so far on the assignment.

5. You must be able to provide documentary evidence (such as a certificate from a doctor
or counsellor) justifying the need for an extension as soon as practicable - but please
note that if the circumstances giving rise to the request for an extension arise on a day
when you cannot get documentary evidence, you must still apply for the extension
before the due date and submit the documentary evidence afterwards.

6. Given the tight deadlines involved in returning assignments to students and putting
feedback on Interact, the maximum extension granted will be seven (7) days from the
due date. Assignments received after this cannot be marked - ie the option of
submitting late subject to a penalty is not available when an extension has been granted.

7. Assignments received more than 10 days after the due date will not be marked. Items
received late will be penalised at 10% of the mark available for the assessment item per
day it is late (see below).

8. Note that for purposes of measuring lateness, the 'day' begins just after 00.00 hrs AEST -
so an assignment received after midnight of the due date (irrespective of how soon after
midnight) will be penalised 10% for lateness. This rule will be applied to all students
uniformly.

How to apply for special consideration

Academic regulations provide for special consideration to be given if you suffer misadventure or
extenuating circumstances during the session (including the examination period) which prevents
you from meeting acceptable standards or deadlines. Find the form on the Student Portal
Special Consideration, Misadventure, Advice and Appeals (http://student.csu.edu.au/study/
academic-advice) page.

Penalties for late submission

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The penalty for the late submission of an assessment task (without obtaining the Subject
Coordinator's approval for an extension) will be:

10% deduction per day, including weekends, of the maximum marks allocated for the
assessment task, i.e. 1 day late 10% deduction, or 2 days late 20% deduction.

An example of the calculation would be:

Maximum marks allocated = 20


Penalty for one day late = 2 marks (so, a score of 18/20 becomes 16/20 and a score of 12/20
becomes 10/20).

If an assignment is due on a Friday but is not submitted until the following Tuesday, then the
penalty will be four days (40% deduction or 8 marks in the example above).

Submissions more than 10 days late will be acknowledged as received but will not be marked.

Resubmission

Resubmission of assessment items will not be accepted for any of the assessments required in
this subject.

Feedback processes

Feedback will take the form of a general feedback document containing the solution to the
problems, published in the subject Resources folder in the Interact2 site, coupled with
individualised feedback written on your assignment.

Assessment return

You should expect your marked assignment to be returned to you within 15 working days of the
due date, if your assignment was submitted on time. If you submitted your assignment on time
but not received it back by the return date, you should make enquiries in the first instance to the
subject coordinator.

Student Feedback & Learning Analytics

Evaluation of subjects

CSU values constructive feedback and relies on high response rates to Subject Experience
Surveys (SES) to enhance teaching. Responses are fed back anonymously to Subject

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Coordinators and Heads of Schools to form the basis for subject enhancement and recognition
of excellence in teaching. Schools report on their evaluation data; highlighting good practice and
documenting how problems have been addressed. You can view a summary of survey results via
the Student Portal SES Results (https://student.csu.edu.au/study/subject-experience-survey-
results) page.

We strongly encourage you to complete your online Subject Experience Surveys. You will be
provided with links to your surveys via email when they open three [3] weeks before the end of
session.

Changes and actions based on student feedback

In response to feedback provided by students in recent Sessions, separate forums for each
Module have been created within the Discussion Board area of the Interact2 site to make it easier
to separate groups of answers to the problem questions at the end of the Modules.

Learning analytics

Learning Analytics refers to the collection and analysis of student data for the purpose of
improving learning and teaching. It enables the University to personalise the support we provide
our students. All Learning Analytics activities will take place in accordance with the CSU Learning
Analytics Code of Practice. For more information, please visit CSU's Learning Analytics
(http://www.csu.edu.au/division/student-learning/home/analytics-and-evaluations/learning-
analytics) website.

Data about your activity in the Interact2 site and other learning technologies for this subject will
be recorded and can be reviewed by teaching staff to inform their communication, support and
teaching practices.

Services & Support

Your Student Portal (http://student.csu.edu.au/) tells you can how you can seek services and
support. These include study, admin, residential, library, careers, financial, and personal
support.

Develop your study skills

Develop your study skills (https://student.csu.edu.au/study/skills) with our free study services.
We have services online, on campus and near you. These services can help you develop your
English language, literacy, and numeracy.

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Library Services

CSU Library (https://student.csu.edu.au/library) provides access to the eBooks, journal articles,


books, and multimedia resources needed for your studies and assessments. Get the most out of
these resources by contacting Library staff either online or in person, or make use of the many
Library Resource Guides, videos and online workshops available.

CSU Policies & Regulations

This subject outline should be read in conjunction with all academic policies and regulations,
e.g. Student Academic Misconduct Policy, Assessment Policy – Coursework Subjects,
Assessment Principles Policy, Special Consideration Policy, Academic Progress Policy, Academic
Communication with Students Policy, Student Charter, etc.

Please refer to the collated list of policies and regulations relevant to studying your subject(s)
(http://student.csu.edu.au/administration/policies-regulations-subjects) which includes links to
the CSU Policy Library (http://www.csu.edu.au/about/policy) – the sole authoritative source of
official academic and administrative policies, procedures, guidelines, rules and regulations of
the University.

Subject Outline as a reference document

This Subject Outline is an accurate and historical record of the curriculum and scope of your
subject. CSU's Subject Outlines Policy (https://policy.csu.edu.au/view.current.php?id=00267)
requires that you retain a copy of the Subject Outline for future use such as for accreditation
purposes.

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