Case study one. Mary is a nurse at the Perth Public Hospital (PPH). Mary’s husband, Wayne considers himself an entrepreneur and is always looking for a business opportunity. Wayne’s friend Frank works...

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Case study one.


Mary is a nurse at the Perth Public Hospital (PPH). Mary’s husband, Wayne considers himself an entrepreneur and is always looking for a business opportunity. Wayne’s friend Frank works as a ‘Fly-in-fly-out’ worker and has found a supplier in Thailand who makes hospital products including face masks and hand sanitiser. Wayne identifies a business opportunity to buy face masks and hand sanitiser from the Thailand supplier that Frank has contacted and sell to hospitals in Perth. Wayne encourages Mary to identify sales opportunities through her hospital contacts. PPH is one of four hospitals in Perth. By the end of 2019


Wayne has been able to obtain regular supplies from Thailand and has contracts with three of the four Perth hospitals, including PPH, to supply the face masks and hand sanitiser.


Question 1: Mary, Wayne and Frank decide to set up a partnership. Advise them of what they need to do, and the advantages and disadvantages of this form of business structure.(short answer)


Question 2: What may be an alternative form of business structure that could be preferred for Mary,Wayneand Frank’s business? Justify your recommendation.(short answer)





References


ReadChapter9;Chew, Charles. 2014. "Choice of Business Structure" inBusiness Law Guidebook(available on Unit Readings).(business structure)


Read Chapters 1 -3;Lipton, Phillip, Abe Herzberg, and Michelle Welsh. 2019.Understanding Company Law(available on Unit Readings).(the company as a legal entity)



Read Chapters 12 and13;Lipton, Phillip, Abe Herzberg, and Michelle Welsh. 2019.Understanding Company Law (available on Unit Readings).( therelationship between a company and the directors)

Read Chapters 14 and17;Lipton, Phillip, Abe Herzberg, and Michelle Welsh. 2019.Understanding CompanyLaw (available on Unit Readings). (the relationships between directors,companyand shareholders.











Case study 2


The business was incorporated on December 2019 as MWF Supplies Pty Ltd. Mary, Wayne and Frank were appointed as directors of the company and had equal shareholdings (33⅓% each).


At the commencement of 2020 the world became engulfed in a pandemic,Covidwas spreading. MWF Supplies Pty Ltd was able to obtain additional supplies of face masks and hand sanitiser, which the three hospitals required and other organisations, for example retail, were also demanding these items. Sales flourished for MWF Supplies Pty Ltd. Wayne wanted to expand the business and purchase ventilators. Ventilators had become an important hospital product in assisting patients withCovidoverseas. Ventilators were expensive and the company needed to obtain additional funds to purchase the Ventilators. Frank’s Thailand supplier was able to supply the ventilators, but it was unclear what the demand would be in Perth for ventilators. Mary was concerned about this business venture and did not agree with purchasing the ventilators.


Unfortunately,at the start of 2020, Mary and Wayne separated and Mary commenced divorce proceedings. Wayne and Frank were concerned that Mary may become difficult to work with and could jeopardise the business, including the contract with PPH and the purchase of the ventilators. They had heard that a local business-person Andrew hassecured hospital products from China and has entered into an agreement with the Western Australian Government to supply these products. Wayne and Frank are keen to secure contracts for the supply of the ventilators and other hospital products to ensure the success of the company.


Wayne’s brother Dan has spare money and Wayne and Frank decide to issue shares to Dan (Dan is not appointed as a director of the company). The money could be used to purchase the ventilators, but it also resulted in the shareholders; Mary, Wayne,Frankand Dan each having 25% of the shareholding.


Wayne and Frank call a Special General Meeting and together with Dan, pass the following resolutions to modify the constitution:


1. MWF Supplies Pty Ltd will provide any hospital products as deemed suitable by the directors of the company.


2. A director can be removed from office by a majority vote of the other directors.


At the next director’s meeting Wayne and Frank vote to remove Mary as a director and to confirm the agreement with the Thailand supplier for the purchase of ventilators.



Question 3: Advise MWF Supplies Pty Ltd of the legal issues in this case and if the directors could be in breach of their duties.(Long answer)


4: Advise Mary if she has a legal remedy under the Corporations Act.(long answer)

Answered 2 days AfterApr 16, 2021MBS518Murdoch University

Answer To: Case study one. Mary is a nurse at the Perth Public Hospital (PPH). Mary’s husband, Wayne considers...

Jose answered on Apr 19 2021
133 Votes
The University of Queensland
1
Running Head : Management
Management
Business Law and Partnership
Individual
Lecturer:
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Due Date: 18/4/2021
Case Study One
Question 1: Mary, Wayne and Frank decide to set up a partnership. Advise them of wha
t they need to do, and the advantages and disadvantages of this form of business structure.
Mary, Wayne and Frank decide to set up a partnership, As per the US partnership Act 1980, for starting and operating a partnership firm the partners has to consider different things. Partnership firm can be called as the organization created by two or more people in an agreement to share the profit and losses based on fund invested. Compared to other forms of business it is easy to start and manage a partnership firm. The liability for the partners are unlimited and for creating a partnership firm the partners has to create document called partnership deed (Chew et al 2014). Partnership deed explains the various aspects such as name of the partner, amount invested by each of them, address of the partners, share and profit ration details and the duties and responsibilities of the partners. For managing the operations of a partnership firm, partners have to follow the rules and regulations explained in the US partnership act 1980. Now we can go through and pros and cons of a partnership firm in a detailed way.
Pros
It helps the company for taking the decisions fast and it also helps the partners for implementing new policies and practices. We know the fact that for managing the operations of business we have to give importance to proper control and coordination. Compared to other forms of business it is easy to control and manage the operations and it also provide freedom for the partners to come up with new ideas and plans. It is easy start and operate partnership business. Partnership business also get an opportunity to get the subsidy from the government and it helps the companies for reducing the cost related with the operations. Partnership firm also helps the partners for specialize in their area of expertise and it also helps them for making significant changes that helps for improving the overall performance of the organization.
Cons
While analysing the US partnership act we can understand that partners are liable for the claims and it directly affect the personal belongs and gains. Trust and faith among the partners is very important, otherwise it directly influence the day to day operations of the business and the performance. In partnership firm it is not easy to keep the confidential information and it helps the competitors to get more information about the business and other related activities....
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