LAW3016 - COMPANY LAW AND SECRETARIAL PRACTICEProlog

Java Python DIPLOMA IN ACCOUNTING

LAW3016 - COMPANY LAW AND SECRETARIAL PRACTICE

CONTINUOUS ASSESSMENT 1 (50 Marks - 30%)

JUL- SEP 2024

Nelson and Anson Lau are cousins. In 2015, they started Ole Sons Pte Ltd (“OSPL”), a company dealing with antiques. They each owned 40% of the shares in OSPL while 15% were held by Nelson’s wife, Kelly, and the remaining 5% by Anson’s sister, May. Nelson and Anson were the only directors of OSPL. Nelson and Anson also signed a shareholders’ agreement in 2015 (“Shareholders’ Agreement”) where they agreed that if either director authorised a payment for the company, the cheque for the payment must be signed by the other director. OSPL’s constitution has a regulation that states that it agrees to abide by the Shareholders’ Agreement.

Nelson and Anson were close and had a good relationship. However, in early 2024, the 2 cousins quarrelled and refused to talk to each other. In May 2024 Nelson authorised 4 payments to 2 of OSPL’s suppliers, OSPL’s solicitors and their audit firm, who had provided either goods or services to OSPL. When Anson was approached to sign the cheques, he refused. OSPL was therefore unable to pay the 4 parties, which led to demand letters being sent to OSPL by the 4 parties.

Nelson  and  Kelly  plan  to  convene  an  Extraordinary  General  Meeting  to  pass  an ordinary resolution authorising Nelson, to make payments to the 4 parties.

Required:

(a)       Discuss how the powers of a company are shared between the board of directors and the members in general meeting.  (25 marks)

(b)       Discuss  (i)  how the reserve power of management of the  company may be vested in the members in general meeting, and (ii) whether Nelson and Kelly are able to authorize Nelson to make the payments to the 4 parties.   (20 marks)

Please support your answers with relevant statutory provisions and cases.   (45 marks)

Performance Guide for students:

Marks will be awarded for:

(i)        Content:

a.   Clear usage, statement, and explanation of relevant legal principles

b.  Original, clear, logical and convincing discussion on the application of the laws to the facts

c.   Statement of Conclusion

d.  Appropriate referencing (in-text and list LAW3016 - COMPANY LAW AND SECRETARIAL PRACTICEProlog of references) (ii)      Number and quality of references: At least 5

(iii)     Organization  of answers  and  writing  style.  (including  spelling, grammar,

syntax,  etc).  Please make  sure you use the  “Grammar  and  Spell  check” functions to check your submissions.

Up to 5 marks will be awarded towards (i), (ii) and (iii).   (5 marks)

(Total Marks: 50)

Instructions for Continuous Assessment 1: Individual Assignment

•   The individual assignment must be submitted online via the Canvas portal by

24 Jul 2024 . Failure to adhere to the deadline provided on the Canvas portal will result in marks being deducted.

•   Please ensure that your name and student number are clearly printed on the cover of your submission.

•   This is an Individual Assignment marked upon 100 marks.

•   Weightage for Continuous Assessment 1: 30% of the total marks for this module.

•   Assignment should be type-written using 12 pt ARIAL font and 1.5 line spacing.

•   Word limit is 1500 words (excluding words in references) and must be printed at the end of the assignment.

CA Submission

•   CAs must be submitted online via the Canvas portal.

•   Deadlines,  instructions  and  detailed  guidelines  are  provided  on  the  course Canvas page.

•   Please read the instructions and guidelines provided on the Canvas portal and in this document carefully.

•   Ignorance  of specific  directions  mentioned  in  these  documents will not be considered as a valid reason which will lead to mark deductions and may lead to failure in the CA component of this course.

•   If you have further queries, please read the FAQ. If after you have read the FAQ, you       need       assistance       on       Canvas       submission,       please       email [email protected]or call  6248  9090  Option  1.  For  non-Canvas issues please emailhe10@sim.edu.sg. Please email with your Mymail account.  Email from other addresses will not be entertained