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 Assessment Task


Question 1                                                                                                                                                   20 Marks


Richard has an extensive olive grove in the Hunter Valley region of NSW. He has around 12,000 trees established and has recently purchased his neighbour’s adjoining property with a view to expansion.

His business is flourishing and his two sons, David and Liam, have recently moved from Sydney to help him expand the business. They see opportunities opening up in new markets and would like to become further involved in the business. They want the family business to be in a form that would allow it to expand as necessary and also make it easier to raise the capital required for this expansion. They have also heard that there are tax benefits in operating a business through a company structure rather than as a sole trader or partnership. They persuade their father to take advice on turning the family business into a family-run company. There is some contention regarding the naming of the company. Richard prefers to name the company after themselves – “Ridali” – whereas David and Liam prefer the name “Rich’s Guaranteed Olives”, in honour of their father.


Advise Richard and his sons of the steps that need to be taken to incorporate and register a company.


Question2                                                                                    20 Marks                                                                                                                                                   

Terry was an employee of Cosmo Mining Services Pty Ltd (CMS). CMS is a subsidiary of Cosmo Mine Ltd (CM) as CM owns 120 of the 200 issued shares in CMS. CMS owns and operates a lead, zinc and copper mine at Gunbarrel, Western Queensland. CM has an arrangement with the New Vision Bank Ltd whereby it leases all of the mining equipment and then subleases the equipment to CMS which pays CM a leasing charge per annum equal to the bank’s leasing costs plus 10 per cent.

Recently, CMS has attracted considerable media attention as scientists have discovered that CMS’s mining activities have contaminated a nearby river which supplies the water to the


mine and Gunbarrel. A number of Gunbarrel residents and former employees, including Terry, have contracted cancer because they drank the contaminated water. The CMS shareholders call a general meeting for the purpose of addressing CMS’s potential liability to its employees (current and former) as well as the residents of Gunbarrel. The CMS shareholders unanimously vote in favour of selling CMS’s business to a newly formed company, Lazarus Pty Ltd, and winding up of CMS. Advise Terry if he can take action against Lazarus Pty Ltd, CMS and/or CM.




Assessment Criteria








You will have shown evidence of the following:

      the written expression is poor and difficult to understand (spelling and grammar require improvement) 



      the answer is poorly organised

      referencing is generally inadequate 



      lack of familiarity with the legislation and its application

      failure to identify and address the issues in the question

      reasoning and application of law demonstrated is poor.





You will have:

      made a conscientious attempt to address the topic and/or answer the question 



      shown evidence of having done the required reading and of having understood the reading

      presented a reasonable argument to back up your conclusions

      demonstrated a reasonable level of spelling and grammatical usage

      used referencing but this may need improvement

      issues that may need to be identified and addressed in more depth.


You will have:



      addressed the topic and/or answered the question directly

      presented soundly based arguments and backed these up with reasons

    •      gone beyond description to analysis of key issues

      used the English language well 



      shown evidence of reading widely

      demonstrated understanding of the reading

      used referencing that is satisfactory.


You will have:

      met the above criteria for a credit, ant



      demonstrated a high degree of understanding of the concepts of the course



      demonstrated deep insight into the application of knowledge and skills required in the course to complex theoretical and practical situations



      used referencing correctly



      made reference to all appropriate legislation.



High Distinction



You will have:



      met the above criteria for a distinction, and



      demonstrated an outstanding level of achievement regarding the objectives of this course



    •      demonstrated an interesting and/ or original approach/ idea/ argument



      demonstrated mastery of the relevant referencing system



      ensured conclusions are backed by well-reasoned arguments demonstrating a detailed insight and analysis of issues



      ensured references are made to the appropriate legislation for particular issues.





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