Professional Documents
Culture Documents
Instructor manual
to accompany
Company law: an
interactive approach
1st edition
by
Chapple et al.
Students are expected to treat the case study as a real-world business scenario, and David Douglas and
his Racing Parts business as real clients. The case study does not provide all the information needed
for each decision. Students need to develop the skills to know what might not have been said or
provided, and to ask their clients the right questions. It is important to regularly remind students that
they will need to ask their client questions. They cannot rely on the client to know exactly what
information to provide.
Students need to understand what is important to the client and why the client wants things a certain
way. An adviser will not always remember all the information about their client and it is therefore
important to regularly review and reacquaint themself with the client as the case study develops.
The first appearance of the Racing Parts case in each module presents relevant background
information, events that have occurred since the previous module, and an overview of the issues that
will be raised in the current module. The list of issues at the end of the first case box in the module
includes the key considerations/questions to be analysed in order to advise David. By working
through the module and, in particular the Racing Parts Activities and Insights that appear in most of
the learning objective sections of the module, the student should be able to formulate a response to
each of these issues. The more specific questions that are sometimes included are intended to help
students focus on the key information relevant to decisions.
Issues
At this stage, before studying the module, the student will not necessarily be able to advise a client on
these questions, but should be able to think about the issues in more general terms:
Students should discuss the purpose of rules and identify the two groups (shareholders and
directors being the internal parties) the rules are aimed at.
The replaceable rules may be suitable when a company requires only basic rules to govern the
major areas of the company’s operations in order to meet regulatory obligations. A company
constitution may be suitable when a company will be better served by rules that are tailored to the
company’s specific size, nature, circumstances, goals and activities. A company may choose to
use a combination of the replaceable rules and a company constitution if the replaceable rules are
suitable to the circumstances of the company, but the company nevertheless has specific needs
that are additional to the matters covered by the replaceable rules.
Students should acknowledge that the affirmative answer is appropriate. They should draw on
LO3.1 to relate this back to the reasons that company rules are required (regulatory obligations; to
provide certainty to all parties internal and external; to balance managers’ and owners’ interests).
Students may also draw on the discussion of directors’ liability, described in module 2. Students
should be able to explain that the company constitution can determine how much control different
parties have. Students should discuss the advantages and disadvantages of a company constitution
in relation to David’s desire to maintain control of Racing Parts Pty Ltd.
Students should discuss why a company may want or need to change its rules. In relation to
Racing Parts Pty Ltd, they should refer to David’s goals for the company and his future plans
(particularly in relation to adding other shareholders and directors in future, along with this plans
to diversify into other areas of business).
Charles was temperate, chaste and serious; he treated those about him
with punctilious courtesy and expected the same in return.
But it may be that in the twistings and turnings of his political career
we see the qualities that are not inconsistent with the artistic
temperament.
As for the apparent cause of Charles’s stammering, that is quite
impossible even to guess. It is possible that he, a naturally sensitive and
refined little boy, may have been unconsciously terrified by his father’s
unpleasant personal habits. At any rate, let us keep a soft spot in our
hearts for the ill-fated king.
Whence came the somewhat nervous strain that runs, like a brass
thread, through the whole dynasty of the Stuarts, I hesitate to speculate:
perhaps from Darnley, father of James I. They always make me think of
a set of naughty children wedged between the great gloomy Tudors and
the unpleasant Hanoverians. There was James I, who is generally held by
the English to have been an egregious person; next, Charles I, who,
probably, would have done better as a poet; then Charles II, who was by
far the cleverest of them, but was too lazy; and lastly the gloomy and
exceedingly immoral—if all tales are true—James II, who was a man too
much under the influence of religion. It is said that he used to get
absolution after every time that he visited his mistress. Then there was
that poor, lonely, stupid Anne, who could not, for some reason, rear a
single one of her numerous children.
King Charles II
As the best thing that we hear of the life of King Charles II is the
manner of his leaving it, I confine myself to a description of his death.
You will get a moderately good account of it in Bishop Burnet’s history,
of which Swift was so scornful; and a recognisable account of it in Lord
Macaulay, written with all the fixed ideas of the early nineteenth century
colouring the ink; but the real truth appeared in an article in the British
Medical Journal for 1910, which again was drawn largely from Dr.
Raymond Crawfurd’s Last Days of Charles II. As Dr. Crawfurd gives the
official report of Sir Charles Scarburgh, one of the consultants in
attendance at the time, probably we may take it that we have the exact
details so far as the medical science of 1685 could give them.
Towards the end of 1684 the king did not feel quite well: he was
irritable and depressed, and thought it wise to remain indoors during the
mornings, instead of taking his usual active walks. He attributed his
illness to gout. It would be interesting to speculate on what the disease
actually was that so often was called “gout” in the sixteenth and
seventeenth centuries. There are many conditions which cause symptoms
such as might be mistaken for gout; let us leave it at that, for even to-day
a doctor, forced to give to a vague complaint a name, sometimes takes
refuge in the euphemism “rheumatic gout.” During these few days
indoors he amused himself by playing with mercury in his laboratory,
for, as is well known, he was of scientific bent. At last came the fateful
morning, Monday, February 2nd, 1685. At eight o’clock the king, while
being shaved, fell back with a cry into the arms of an attendant, Lord
Aylesbury. According to Dr. Scarburgh, “Charles, having just left his
bed, was walking about quietly in his bedchamber when he felt some
unusual disturbance in his brain, which was followed by loss of speech
and violent convulsions.” There happened to be present at the time two
of the king’s physicians who, so as promptly to forestall so serious a
danger to “this best of kings,” as Scarburgh has it, opened a vein in his
right arm and drew 16 ounces of blood. As a matter of fact, this assault,
though seemingly homicidal, was probably as good a thing as could have
been done for him, though few doctors would have the moral courage to
do it to-day. His head was closely shaved; his neck and shoulders were
blistered and scarified; emetics, purgatives and clysters were