BFA 726-Large Lands Pty Ltd (Large Lands) is a property
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BFA 726-Large Lands Pty Ltd (Large Lands) is a property Facts 1:Large Lands Pty Ltd (Large Lands) is a property development company. It owns parcels of rural and semi?rural land in Victoria. Joe owns 80% of the shares in Large Lands and controls the composition of its board. Last year, the company made a small trading loss, but it owns a large area of land with a frontage to the Gold Coast, which is valued in the company’s balance sheet at $10 million, but which is expected to be worth at least $25 million when it is developed as a golf course resort. Joe needs cash for another project in which he is involved. He wants the board to revalue the land at $25 million and then to distribute the $15 million âexcessâ to the shareholders in the form of a dividend. Required: Advise the directors of Large Lands:1. Whether they can comply with Joe?s wishes without breaching the Corporations Act 2001 (Cth);2. What guidelines should they follow in making their decision?Illustrate your answer by reference to relevant legal principles, cases and, where appropriate, statutory provisions of the Corporations Act 2001 (Cth).Pacts 3: what is the corporate veil and under what circumstance is an Australian court likely to lift it?