LAW EXTENSION COMMITTEE SUMMER2020-21 07...

Question

LAW EXTENSION COMMITTEE

SUMMER2020-21

07 EQUITY

ASSIGNMENT

INSTRUCTIONS

InEquity, there is onlyONE ASSIGNMENT.This assignment is compulsory and must be submitted by all students.The assignment will constitute 20% of the final mark in this subject.

Assignments must be submitted by the due date unless an extension has been granted. Extensions need to be requested by emailpriorto the assignment due date and specific supporting evidence provided. Late assignments attract a penalty of one mark out of 20, or 5% of the total marks available, per day. A pass mark is 50%. Assignments that are received more than ten days after the published due date will not be accepted. Please note that students granted an extension must still submit their assignment withinten days of the original assignment due date.

Assignments are assessed according to the “Assignment Grading and Assessment Criteria” outlined in theGuide to the Presentation and Submission of Assignments.

This guide also contains the rules and guidelines regarding the presentation of assignments and instructions on how to submit an assignment and is available from the Guides and Policies section of Canvas. Please read this guide carefully before completing and submitting this assignment.

The maximum word limit for the assignment is 2000 words (inclusive of all footnotes). A bibliography is not required.

Completed assignments should be lodged throughCanvasandreceivedby11:59pm(Australian EasternDaylightTime)onWednesday 6 January 2021.

Please download the Assignment Coversheet.The coversheet will be the first page of your assignment. Save it with the name you intend to use for the assignment and begin your answer on the second page. Make sure you complete the Assignment Coversheet byentering in your Full Name and Address Details.

COMPULSORYASSIGNMENT

There are two questionto this assignment.You must answer both.

Thetwoassignment questions raiseissues coveredin therequired readingsup to,andincluding,the topic of Charitable Trusts.BOTH QUESTIONS MUST BE ANSWERED.In answering the assignment questions,students are expected to have undertaken research beyond reading the prescribed materials for this course.

The questions will be marked out of 100 and the mark converted toa final mark out of 20.

Question 1:(60 marks)

Frederickis one of 5 directors ofHigh CountryIndustriesPtyLtd (High Country).High Countrywas formed as the vehicle through which the American designed gortex products, developed byLivingstonIndustries Ltd (Livingston), would be manufactured and sold in the Australian market.Frederickwas assigned the task of negotiating the agreement withLivingston. BecauseHigh Countryhad no assets of any real value,Livingstonwas not prepared to enter into theagreement withHigh Countryalone. Instead it insisted that it would only enter into such an arrangement withHigh CountryandHighCountry’s five directors as equal parties to the agreement.

This proposal was agreed to byHigh Country’sboard of directors and a contract to that effect was enteredinto soon thereafter. In the two years that gortex products have been selling in Australia, substantial profits have been made byHigh Countryand its five directors.

A monthago,the shareholders inHigh Countrybecame aware for the first time of thedetails of what had transpired in relation to the contract entered into withLivingston.One of those shareholders isMalcolmwho,at all relevant times up to that point of time,held a substantial number of shares as bare trustee for James.

Last week James telephonedMalcolmand instructed him to hold the shares on trust forFelicity.

In relation to the above facts,Felicityseeks your advice as tothe following:

(a)whether she has any interest inanyshares in High Country;(15 marks)

(b)whetherFrederick and the other 4 directors of High Countryare in breach of any obligationsowed to High Country;(20 marks)

(c)whetherFrederick and the other 4 directors of High Countryare in breach of any obligationsowed to Malcolm;(15 marks)

(d)whetherFrederick and the other 4 directors of HighCountryare in breach of any obligationsowed to the beneficiary of shares of which Malcolm is the bare trustee.(10 marks)

Note:In answering this questionexclude fromconsideration any obligations imposed upon directors by statute.

Question 2:(40 Marks)

In 2006,RonaldandMelaniepurchased,as joint tenants,a Torrens title house in Vaucluse, as their family home. They contributed equally to the purchase price of$10 million. Upon registration of the purchase,the Land Titles Office issued them aCertificate of Title thatwaskeptin a locked safeat the Vaucluse property.

In February 2020,Melanieexecuted a valid will in which sheappointed her father, Viktor, as executor, andleft her entire estate to her18 year oldson,Benson.On 3 November2020,Melaniecontracted the Covid 19 virus. On 5 November 2020, in order to sever the joint tenancy in relation to the Vaucluse property,Melanieexecuted an instrument pursuant s 97 of the Real Property Act 1900 (NSW)which was witnessed byRonaldand indicatedthat he understood that the joint tenancy was to be severed. On 10 November she handed the s 97 instrument toBensonand urged himto lodgeitwith the Land TitlesOffice for registration as soon he possiblycould.

On 11November, 2020,Melaniewas killed in a car accident while she was on her way to receive medical treatment in relation to symptoms she was suffering as a result the Covid 19 virus.

In relation tothe above facts:

(a)Benson, whohasnot lodgedthe s 97instrument for registration,seeks youradvice as to whetherhecan now get it registered.(20 marks)

(b)Would your advicein (a)be different if, instead of executing the s 97 instrument on5November 2020: (i)Melanieexecuted a memorandum of transfer of her interest in the Vaucluse property by way of a gift to Benson; (ii)shegave himakey to the safe at the Vaucluse house sothat he could collect the certificate of title; and (iii) Benson, not having yet collected the certificate of title from the safe,nowwants todo so and thenlodgeit together with thetransfer for registration at the Land Titles Office?(20 marks)

Note:In answering this question assume that theelectronic conveyancinglegislation was never enacted in New South Wales.

Tanisha · Accepted Answer

In Equity, there is only ONE ASSIGNMENT. This assignment is compulsory and must be submitted by all students. The assignment will constitute 20% of the final mark in this subject.
Assignments must be submitted by the due date unless an extension has been granted. Extensions need to be requested by email prior to the assignment due date and specific supporting evidence provided. Late assignments attract a penalty of one mark out of 20, or 5% of the total marks available, per day. A pass mark is 50%. Assignments that are received more than ten days after the published due date will not be accepted. Please note that students granted an extension must still submit their assignment within ten days of the original assignment due date.
Assignments are assessed according to the “Assignment Grading and Assessment Criteria” outlined in the Guide to the Presentation and Submission of Assignments.
This guide also contains the rules and guidelines regarding the presentation of assignments and instructions on how to submit an assignment and is available from the Guides and Policies section of Canvas. Please read this guide carefully before completing and submitting this assignment.
The maximum word limit for the assignment is 2000 words (inclusive of all footnotes). A bibliography is not required.
Completed assignments should be lodged through Canvas and received by 11:59pm (Australian EasternDaylightTime) on Wednesday 6 January 2021.
Please download the Assignment Coversheet. The coversheet will be the first page of your assignment. Save it with the name you intend to use for the assignment and begin your answer on the second page. Make sure you complete the Assignment Coversheet by entering in your Full Name and Address Details.
COMPULSORYASSIGNMENT
There are two question to this assignment. You must answer both.
The two assignment questions raise issues covered in the required readings up to, and including, the topic of Charitable Trusts. BOTH QUESTIONS MUST BE ANSWERED. In answering the assignment questions, students are expected to have undertaken research beyond reading the prescribed materials for this course.
The questions will be marked out of 100 and the mark converted to a final mark out of 20.
Question 1:(60 marks)
Frederick is one of 5 directors of High Country Industries Pty Ltd (High Country).High Country was formed as the vehicle through which the American designed gortex products, developed by Livingston Industries Ltd (Livingston), would be manufactured and sold in the Australian market. Frederick was assigned the task of negotiating the agreement with Livingston. Because High Country had no assets of any real value, Livingston was not prepared to enter into the agreement with High Country alone. Instead it insisted that it would only enter into such an arrangement with High Country and High Country’s five directors as equal parties to the agreement.
This proposal was agreed to by High Country’s board of directors and a contract to that effect was entered into soon thereafter. In the two years that gortex products have been selling in Australia, substantial profits have been made by High Country and its five directors.
A month ago, the shareholders in High Country became aware for the first time of the details of what had transpired in relation to the contract entered into with Livingston. One of those shareholders is Malcolm who, at all relevant times up to that point of time, held a substantial number of shares as bare trustee for James.
Last week James telephoned Malcolm and instructed him to hold the shares on trust for Felicity.
In relation to the above facts, Felicity seeks your advice as to the following:
(a)​whether she has any interest in any shares in High Country;(15 marks)
(b)​whether Frederick and the other 4 directors of High Country are in breach of any obligations owed to High Country;(20 marks)
(c)​whether Frederick and the other 4 directors of High Country are in breach of any obligations owed to Malcolm;(15 marks)
(d)​whether Frederick and the other 4 directors of High Country are in breach of any obligations owed to the beneficiary of shares of which Malcolm is the bare trustee.(10 marks)
Note:​In answering this question exclude from consideration any obligations imposed upon directors by statute.
Question 2:(40 Marks)
In 2006,Ronald and Melanie purchased, as joint tenants, a Torrens title house in Vaucluse, as their family home. They contributed equally to the purchase price of $10 million. Upon registration of the purchase, the Land Titles Office issued them a Certificate of Title that was kept in a locked safe at the Vaucluse property.
In February 2020,Melanie executed a valid will in which she appointed her father, Viktor, as executor, and left her entire estate to her 18 year old son,  Benson. On 3 November 2020,Melanie contracted the Covid 19 virus. On 5 November 2020, in order to sever the joint tenancy in relation to the Vaucluse property, Melanie executed an instrument pursuant s 97 of the Real Property Act 1900 (NSW)which was witnessed by Ronald and indicated that he understood that the joint tenancy was to be severed. On 10 November she handed the s 97 instrument to Benson and urged him to lodge it with the Land Titles Office for registration as soon he possibly could.
On 11November, 2020,Melanie was killed in a car accident while she was on her way to receive medical treatment in relation to symptoms she was suffering as a result the Covid 19 virus.
In relation to the above facts:
(a)​Benson, who has not lodged the s 97 instrument for registration, seeks your ​advice as to whether he can now get it registered.(20 marks)
(b)​Would your advice in (a)be different if, instead of executing the s 97 instrument on 5 November 2020: (i) Melanie executed a memorandum of transfer of her interest in the Vaucluse property by way of a gift to Benson; (ii)she gave him a key to the safe at the Vaucluse house so that he could collect the certificate of title; and (iii) Benson, not having yet collected the certificate of title from the safe, now wants to do so and then lodge it together with the transfer for registration at the Land Titles Office?(20 marks)
Note:

LAW EXTENSION COMMITTEE SUMMER2020-21 07 EQUITY ASSIGNMENT INSTRUCTIONS InEquity, there is onlyONE ASSIGNMENT.This assignment is compulsory and must be submitted by all students.The assignment will...

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