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Business Law Assessment Answer
Task:
In Qintex Australia Finance Ltd v Schroders Australia Ltd (1990) 3 ACSR 267,
Rogers CJ stated that:
there is today a tension between the realities of commercial life and the applicable law [in relation to the treatment of companies within a group]
the High Court of Australia confirmed the need to preserve, as a matter of law, a rigid demarcation between wholly owned subsidiaries in the same group of companies, as well as their holding company. [This legal position cannot be altered].
It may be desirable for Parliament to consider whether this distinction between the law and commercial practice should be maintained. This is especially the case today
With the reference to the quote above (as modified), discuss whether you agree or not with these statements. Your answer must offer supporting reasons with reference to relevant law.
END OF QUESTION
You do not have to read or discuss the case from which the quote is extracted. If, however, you chose to do so, the discussion in your answer is expected to go beyond the confines of this case
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