Hey guys, just preparing for my Law of Association exam next week, and i came across a problem question, which I just cant seem to get a hold of.
Here it is:
Cooper and Gladys formed Sunset Spa Pty Limited, a holiday resort facility in the North Coast. The companyâ€™s share capital was divided into 100,000 shares of $10 each. All the shares are issued as fully paid and have been subscribed for. Cooper and Gladys took up 90,000 of those shares in exchange for their boat, which they gave to the company as full consideration for those shares. The rest of the shareholders paid for their shares in cash. Cooper and Gladys also purchased their food and cleaning supplies for the holiday resort facility from a company called Retail Heaven Pty Ltd. Gladys is also a director on the board of retail Heaven Pty Ltd. Josh, one of the subscribers who paid for their shares in cash, is complaining that Cooper and Gladys did not provide sufficient consideration for their shares and that the supplies for the resort company cost far more than if they were purchased from the local supermarkets..
Advise Josh on the rules applicable to payment for shares and as to what legal action, if any, can be maintained against Cooper and Gladys in the event of the complaint being sustained.
Any advise or direction would be greatly appreciated.
Thanks guys. Baraa2009-11-05 15:53:52