Law Relating to Public Companies like Excam Plc and Mad Ltd

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Law Relating to Public Companies like Excam Plc and Mad Ltd

Module Name: Law Relating to Public Companies
Word Limit: 2000 (1000 words for each answer). Instructions: Answer TWO questions out of four.
Answer 2 question only.

Answer either A) or B):

A)  Firstly, Dave was employed as a rigger on the drilling platform of Excam plc which was a subsidiary company of Cococco Plc a public company registered in London. Dave was seriously injured by a failure by the managers and directors of Excam to observe and implement the health and safety procedures recognised as standard best practice by the drilling industry and espoused publicly by Excam. Unfortunately for Dave Excam is now insolvent and he wishes to know whether or not he has any chance of successfully suing its parent – Cococco Plc, which is a highly profitable company.

Critically explain the law to him.
OR

B)  Paul knows he is unwell and that he has not provided adequate pension provisions for his wife. As chairman of the board of his company (MAD Ltd) Paul borrows on behalf of the company from Zog Bank Plc, £500,000 which he then pays into a pension fund in his wife’s name. Zog wants its money back and MAD Ltd cannot repay it. Matthew wants reassurance that his wife’s pension is safe. Would it make any difference to your advice if Zog Bank was also a shareholder in MAD Ltd?

Law Relating to Public Companies like Excam Plc and Mad Ltd

Answer either A) or B):

A)  The contract created by the company’s constitution is highly unusual but the ability to enforce the constitution gives shareholders a powerful source of protection. When, however, it comes to altering the constitution are the shareholders equally protected?

Critically discuss.
OR

B)  Directors of public companies are now required to take so many duties or factors into account when making decisions relating to the management of, and decisions for, the company that their role has become almost untenable and puts them at risk of adverse legal repercussions.

Critically discuss.
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Answer either A) or B):

A)  Capital is the essential oil that fuels the engine of a public company however the sources and use of its capital is inadequately regulated or protected by our current company law.

Critically discuss.
Or

B)  Secondly, corporate Governance Frameworks are usually underpinned by corporate theories. Discuss some of the dominant theories of corporate law and also explain which one you find most convincing.

JASSOS plc is a successful clothing retailer in the UK and currently has multiple lucrative contracts with other companies. However, an accident in one of its overseas supplier’s factories has destroyed the majority of its products for the upcoming spring season. JASSOS plc had made substantial investments in improving its customer care centre three years ago. To do this, it had granted a floating charge over its warehouse to USC Bank. JASSOS plc was relying on the potential profits from the various contracts to pay the instalments of the loan and to meet other obligations. As a result of the accident, JASSOS plc is now unable to meet the interest payments of the bank loan. It is also struggling to pay the salaries of independent contractors hired for various projects.

Advise JASSOS plc on the options available to resolve its problems.
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