Electrical plant Referencing Styles : APA | Pages : 15 Question 1 (10 marks) Kruger is Heavy Machinery Sales Manager of JCI. He has frequently…

Electrical plant

Referencing Styles :
APA | Pages :

Question 1 (10 marks)

Kruger is Heavy Machinery Sales Manager of JCI. He has frequently
negotiated and signed contracts on behalf of JCI 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 sell you the ore smelter for $ 3.5
million. I’ll be at your office at 3pm to sign the 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 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) is very concerned and 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 sell it, saying
that Kruger had no authority to sell the smelter because he had been
fired at 1.30pm and had acted out of spite when he signed the deal in
order to make trouble for JCI. Assume that all the above facts are
provable in a court.  Advise JCI as to their legal position, citing
statutory and case law authority.

 Question 2 (10 marks)

 Mary and Sara are sisters who established partnership with their
brothers, Sam, Jeff and John which sold interior decorating supplies.
After running the partnership for five years, they decide to incorporate
the business. They register a company called Interior Solutions Pty
Ltd. Each sibling has a 20% shareholding. All five siblings are also
named as directors of the company. The constitution of the company
requires that each director circulates to all the others a report of
their activities every three months.

 After a year of operating, relationships between the directors break
down. Mary and Sara discovered that Sam used $ 10 000 of company funds
to take an overseas trip, and that he also plans to use company funds to
buy a car for his wife in a month’s time. Neither Sam nor Jeff have
circulated reports over the past six months. Mary and Sara have also
discovered that Sam, Jeff and John have been holding meetings without
informing them, at which they have taken decisions relating to the
operation of the company. When they confronted their brothers about
these issues at a board meeting, the brothers said that they didn’t care
what the sisters thought, and that they would run the company as they
saw fit. The brothers also used their voting power to defeat a motion by
Mary and Sara that the company should initiate action against John to
recover the $ 10 000. Assume you are a solicitor who Mary and Sara have
consulted. Advise them as to what specific remedies they are entitled
to, citing full statutory and case law authority.
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