Business Case Study: Martha And Jamie, Or Michelin Stars
2. Advise Martha and Jamie and/ or Michelin Stars on whether they may have any recourse against Gordon personally, using case law in support.
To advise Martha and Jamie and/ or Michelin Stars on whether they may have any recourse against Gordon personally, we should see whether the separate legal entity of the company may be ignore and lift the cooperate veil. In this case, Martha Shu was an avid cook and had a great talent for restoring and decorating house before her friend suggested that they incorporate a company called Michelin Stars Book a Cook Pte Ltd to take over her business. They wish they can expand the business wider. In addition, they had agreed that Martha would be the Managing Director and hold 10,000 shares while Jamie and Gordon would be the Chief of Finance Officer and Chief Operations Operating. They would hold 5000 shares each. When the business was expanding, Gordon dissatisfied with the other two members over the operating of the company. He decided to quit and accept a higher position in Sunshine Caterers. It was also a catering business …show more content…
They had registered an incorporated company in the Channel Islands called City of London Investment Corporation Ltd(LIC). Darby and Gyde were the only directors and entitled to all profits. The company promoted a company in England called Welsh Slate Quarries Ltd (WSQ).LIC bought a quarrying licence and plant for £3500 and sold this to WSQ for £18,000. When WSQ went into liquidation, the liquidator sought to make Darby liable to account for the profit as a promoter. Darby's objection was that in law he and LIC were different persons. The court lifted the corporate veil and held Darby
To advise Martha and Jamie and/ or Michelin Stars on whether they may have any recourse against Gordon personally, we should see whether the separate legal entity of the company may be ignore and lift the cooperate veil. In this case, Martha Shu was an avid cook and had a great talent for restoring and decorating house before her friend suggested that they incorporate a company called Michelin Stars Book a Cook Pte Ltd to take over her business. They wish they can expand the business wider. In addition, they had agreed that Martha would be the Managing Director and hold 10,000 shares while Jamie and Gordon would be the Chief of Finance Officer and Chief Operations Operating. They would hold 5000 shares each. When the business was expanding, Gordon dissatisfied with the other two members over the operating of the company. He decided to quit and accept a higher position in Sunshine Caterers. It was also a catering business …show more content…
They had registered an incorporated company in the Channel Islands called City of London Investment Corporation Ltd(LIC). Darby and Gyde were the only directors and entitled to all profits. The company promoted a company in England called Welsh Slate Quarries Ltd (WSQ).LIC bought a quarrying licence and plant for £3500 and sold this to WSQ for £18,000. When WSQ went into liquidation, the liquidator sought to make Darby liable to account for the profit as a promoter. Darby's objection was that in law he and LIC were different persons. The court lifted the corporate veil and held Darby