View the step-by-step solution to:



Contrast the principles arising from the judgements in each of the following two cases (1

mark total):


1. Salomon v Salomon & Co Ltd

2.Green v Bestobell Industries


Billy Bob and Angeline decide to set up a tattoo parlour called "Tatts r Us". They wish to run their business under a company structure and be the only directors and members of the company. They would like to keep the affairs of the company as private and as confidential as possible. Their friend Brad suggests setting up a company with the name "Tatts r Us Ltd".


The company has a constitution that provides that Antonio Gonzales is appointed master tattooist for life. Several customers have complained to the directors that they have been suffering from severe rashes and skin infections after having their tattoos drawn at Tatts r Us Ltd by Antonio. The directors discover that Antonio has been using the same dirty needle since he commenced work for the company. The directors decide to remove Antonio as master tattooist and replace him with Fabio. Antonio writes to Tatts r Us Ltd demanding his job back. The company tells Antonio that he has no contract. Antonio buys some shares and writes again stating he now has a contract and wants his job back. The company refuses.




(a)            Do you agree with Brad's advice underlined above? Explain (2 marks)


(b)           Discuss whether the company has to reinstate Antonio. Use the Corporations Act and case law in support (5 marks)

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Let our 24/7 Business Law tutors help you get unstuck! Ask your first question.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors