Equity and trust law problem question Watch

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Report Thread starter 10 months ago
I have been having difficulty identifying the issues in the problem question below. Any help would be appreciated.
In May 2017, Apex Defence Systems PLC, a multinational defence company, purchased Beta Aerospace Avionics Ltd, a small but highly specialised manufacturer of avionic systems, from Carbine Holdings Ltd. Throughout the acquisition, Apex Defence Systems was advised and otherwise assisted by Delta Finance Ltd, a private firm specialising in corporate acquisitions in the defence sector. Apex Defence Systems paid £200m to Carbine Holdings for the purchase of Beta Aerospace Avionics.

In January 2018, the chairman of Apex Defence Systems met a director from Carbine Holdings at a social event. Through conversation it emerged that Delta Finance had been paid a commission to sell Beta Aerospace Avionics. This amounted to 7.5% of the purchase price. Acting on this information, further inquiries confirmed the above to be true: a commission of 7.5% had been paid.

It appears that the commission has now been reinvested by Delta Finance into a speculative investment in mining in Australia. The investment has proven to have been profitable and has doubled in value.

Apex Defence Systems is now contemplating legal action against Delta Finance.

You are instructed to advise the company secretary of Apex Defence Systems on what basis, if any, they might make a claim against Delta Finance Ltd. The Secretary of Apex Defence Systems is legally qualified and requires detailed legal advice so that the company can make decisions about whether to pursue legal action.
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Report 10 months ago
Tell us your thoughts on the question, what bits you get and what bits you don't, and where you have already looked for an answer (as it means we can avoid looking there for it is an established unfruitful source). Otherwise there is too much work to expect us to do; it is a Sunday after all.

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