law assignment .

BM054-3-3-Company Law Individual Assignment

Level 3 APU Page 1 of 2

I. QUESTION

a) “The much celebrated decision of Salomon v Salomon & Co Ltd [1897] AC 22 condones unethical business transactions and restructuring... the Court’s hands are tight, there are no

recourse to it”

Do you agree with the statement above?

(15 marks)

b) Dainty Feet Sdn Bhd is a private limited company whose object clause is the manufacturing

of shoes and “other businesses closely related thereto the above”. During a recent meeting,

the board of directors have decided to venture into the manufacturing and trading of bicycle

tyres. In light of the decision above, the company has purchased RM 1 million worth of

rubber and will be investing RM 2 million in the purchase of machineries; all of which were

from Getah Bhd.

Carrine, a member of Dainty Feet Sdn Bhd is of the opinion that the new business venture is

outside the company’s object clauses.

Advise Carrine on the following:

i) Whether she can successfully argue that the business venture is ultra vires of the objects of the company.

(10 marks)

ii) Assuming that the said contract by Dainty Feet Sdn Bhd is outside the object clause, what are the provisions available to compel the person responsible to compensate the company

for the losses resulting from this business decision?

(5 marks)

II. LEARNING OUTCOMES

This assignment will assess your ability to:

1. Address issues relevant to the conduct of companies; 2. Conduct directed research into rights and liabilities arising from affairs of companies,

particularly corporate personality and company constitution (M&A);

3. Analyse the given problem situation; and 4. Apply relevant legal authorities to provide appropriate solutions.

III. INSTRUCTIONS

1. You are required to write in an essay format suitable for an academic report within the word limit of 2,500.

2. Both in-text citation and general referencing using the Harvard Referencing system must be adopted for this assignment.

3. Your essay must adhere to standard documentation requirements:  Font : Times New Roman  Font Size : 12  Spacing : 1.5

4. In the event the maximum word limit of 2,500 is exceeded, any part(s) of the answer in excess of the word limit will be disregarded.

BM054-3-3-Company Law Individual Assignment

Level 3 APU Page 2 of 2

5. Please state your word count at the end of your answer. Citation and references, as well as tables and appendices will not be considered as part of the word count.

IV. ASSESSMENT CRITERIA

CONTENT: Acquisition of knowledge, relevance of answer, application of

concepts via reference to solid research sources

40%

ANALYSIS: Quality of analysis & critical evaluation, expansion of ideas,

ability to support views presented with proper reasoning

30%

LITERATURE REVIEW: Comprehensive review of selected academic

resources; able to apply literature to problem statement

20%

CONSISTENCY: Coherence and the construction of the answer; linguistic

competence; overall quality fulfils expectation of an effective academic report

10%

TOTAL 100%

V. PERFORMANCE EXPECTATION

Marks are awarded based on the following guidelines:

Grade Description of performance level

75% – 100% Mature and interesting evaluation, based on selected text and relevant legal

issues. Ideas and information presented are convincing & insightful, based on

reflective reading. Points are supported with valid explanation and sound

academic reasoning. Critical thinking reflected through the choice of research

and rigorous application of law. Flawless citation and referencing of sources.

65% – 74% Sufficient arguments were raised, supported with valid research & referencing

of academic sources. Arguments presented contain some critical analysis and

provides adequate insight into the relevant area(s) of company law. There is

adequate understanding of subject matter, with accurate application of law.

50% – 64% Basic requirements fulfilled with minimum understanding of selected text and

areas of company law, supported by reasonable range of academic sources.

Basic examples used to illustrate points. Weak arguments may appear in

answer. Explanations may be unclear/ unhelpful in clarifying points.

Below 50% No understanding of the subject matter and fails to address the needs of the

question. Explanations are unhelpful, points are off-topic and are not related to

selected text or areas of company law jurisdiction. Citation and references are

either very limited or non-existent.