Corporate Law Scenario: Wang is still looking at opportunities to enhance the business. He undertakes a review of the contracts involved in the business and decides that new arrangements need to be made for cleaning the companys premises. Wang proposes for SCPL to enter a cleaning contract worth $50,000 with a cleaning business (CleanCo Pty Ltd). CleanCo is a company run by Wangs daughter Elise (who lives with her mother). Wang has also considered entering into a new coffee supply contract worth $100,000 with a company controlled by his sister, Mei Ling. Lastly, Wang proposes to buy a catering business from his former wife, Rui, at a price agreed between Wang and Rui over coffee last week and calculated on a paper napkin. Wang and Rui split up four months ago. The price is slightly expensive, but Wang believes that combining the catering business with his coffee expertise will produce high profits. 1. Are there any breaches of directors duty here? 2. What obligations does Wang have if he wants to complete these transactions? 3.Would your answer be any different if SCPL was a public company? Legislation based on textbook Important: Your answer must use the IRAC structure and refer to the relevant case law No reference needed.
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.
[order_calculator]