ILAC Method to Solve Cases


Using the ILAC method could someone please help me with these problems. Relevant cases also need to be applied

The ILAC method is

Application or Arguments; and


Gino runs a successful house building and renovation business. His wife Marcia keeps the accounts and lodges the tax returns and they share the income generated by the business which trades under the name “G & M Constructions”. They employ two full time tradespeople.

Gino breaks his leg whilst at work and is incapacitated so that he has to employ another person.

Question 1

He asks you whether he can claim compensation under the worker’s compensation policy for G & M Constructions. Advise Gino whether this is possible and give reasons for the advice.

Gino and Marcia consider your advice and decide to incorporate a company but they want to involve their children in the business. They have three children: Margaret, Nancy and Leon. Leon is still at school and Nancy is at University studying Nursing. Margaret has always helped doing minor trades work on the building sites and office administration and she knows a lot about the construction business. Gino and Marcia want to know who would make the decisions in the company if each of the three children were given an interest in the company, in other words, if there were five people with interests in the company would Gino and Marcia end up being a minority of two.

Question 2

(a) Advise Gino and Marcia about the different organs of the company and their respective roles.

(b) Suggest an internal company structure that ensures Gino and Marcia retain control of the company’s business.

Gino and Marcia incorporate a company based upon your suggestion in Question 3(b) above.

After a few years, G & M Constructions continues to grow strongly and Gino wishes to spend less time on the worksites. His children, particularly Margaret, are unhappy with many of Gino’s managerial decisions and they want him to retire. An argument erupts and Gino says that G & M Constructions owes its success to his decision making and to the tools and equipment that he has built up over the years. Margaret says to him that they will ‘vote him out’ and that they will keep all of the tools and equipment.

Question 3

Advise Gino whether the other company members can ‘vote him out’, and if they are able to do so can he sell the tools and equipment that he has acquired over the years because he paid for these before it became a company.

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