ADDITIONAL TUTORIAL QNS Week 12.docx - TUTORIAL QNS WEEK 12...

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TUTORIAL QNS – WEEK 12 QNS 1 Tim and Neil Finn are partners in the firm “Finn Homes”. They decide to incorporate (means company question.) the business. On incorporation, Tim and Neil become the directors and equal shareholders of Finn Homes Pty Ltd. At the time of the company's incorporation, each director had paid the company $50,000 to form its capital and each had been issued with 25,000 $2 fully-paid ordinary shares. Tim acts as the CEO, although he has not been formally appointed to that position. Under the company's constitution, both directors must agree to any purchases above $10,000 made on behalf of the company. One day, Tim saw that a building supplies business, ABC Timber, was having a sale on timber products. Tim and Neil had purchased timber from ABC many times in the past and, on many of those occasions, both Tim and Neil had referred to Tim as the CEO. On this occasion, Tim tried to contact Neil to discuss the purchase but his mobile phone was turned off. As the prices were so good, Tim didn't wait any further and purchased $20,000 worth of
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