Answer the following questions with reference to case law (if any) and sections of the Corporations Act 2001 (Cth)
(A) You are holding interviews with various people to find another director to work with you in a proprietary company. Which of the following candidates would be legally qualified or not to be appointed to manage the company?
i. John is aged 17 years and 2 months old but has a good commercial mind.
ii. George has great managerial experience but is still trying to organise for release from his bankruptcy (ie to be discharged).
iii. Paul was recently convicted of fraud/stealing funds from a business (punishable by imprisonment for 2 months). Paul served 28 days before being released.
iv. Ringo was an “officer” in two previous companies. Both of these companies were found to have contravened the Corporations Act (and he had failed to take reasonable steps to prevent it).
(2 marks)
(B) Manic Machinery and Metals Ltd (MMM) is a public company listed on the ASX. MMM has 5 directors all of whom are over 18 and reside in Australia. On 1 January 2018, one of the directors, Damien, provided notice of a general meeting to be held on 1 February 2018. One of the resolutions proposed by Damien would have the effect of removing two of the other directors, Suzy and Ryan. Suzy and Ryan both have employment contracts with MMM that state they will remain directors until 2020.
Damien argues his notice for the general meeting and the resolution to remove the two directors is valid.
Advise MMM. Please discuss the application of law and conclusion.
(5 marks)
