Law Of Business Association
Author:
Genre: Law

Ben and his wife Lilian have come to you for legal assistance to prepare their wills. Their major asset is their farm which they say they have owned for the last 40 years. They want to leave the farm in equal shares to their three adult children. However, when you look at the certificate of title to the farm you discover the farm is actually owned by their company Beneli Farming Pty Ltd. Ben and Lilian do, however, own all the shares in the company. Nevertheless, they cannot leave the farm to their children in their wills. To help Ben and Lilian understand this conclusion, prepare a letter of advice for Ben and Lilian explaining to them the nature of a company and what they actually own as members of the company. Make sure you refer to relevant cases and legislation to support your explanation.

About the Book

Law Of Business Association

Law Of Business Association is the field of law concerning companies and any of the organizations.

Question 1:

Ben and his wife Lilian have come to you for legal assistance to prepare their wills. Their major asset is their farm which they say they have owned for the last 40 years. They want to leave the farm in equal shares to their three adult children. However, when you look at the certificate of title to the farm you discover the farm is actually owned by their company Beneli Farming Pty Ltd. Ben and Lilian do, however, own all the shares in the company. Nevertheless, they cannot leave the farm to their children in their wills. To help Ben and Lilian understand this conclusion, prepare a letter of advice for Ben and Lilian explaining to them the nature of a company and what they actually own as members of the company. Make sure you refer to relevant cases and legislation to support your explanation.

Question 2:

According to Ben and Lilian, Beneli Farming Pvt Ltd was set up many years ago by their accountant. What advice should the accountant have provided Ben and Lilian on the pros and cons of operating their farming business as a company? Compare and contrast these with the pros and cons of setting up a partnership to run the business instead of a company and explain the information you would have sought from the client before reaching a conclusion on the best business structure for them.

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