Equity problems

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Bill, Annie and Tonto all work for Wild West Entertainment plc. Annie is in charge of gun shooting training, Bill has responsibility for organising shows and exhibitions, and Tonto is in charge of managing the show animals.

Annie, on behalf of the company, secures a contract for the supply of 500 rifles a month from the leading gun supplier, Bullet plc. Whilst in negotiations she persuades them to add 100 barrels of gunpowder a month free of charge to the order. Annie then sells on the gunpowder to her friend, Jesse, a local cowboy.

Tonto, meanwhile, has been selling manure from the show animals for fertiliser to local farmers. He does not reveal this fact to Wild West Entertainment plc since the manure would otherwise go to waste. Tonto does not have his own bank account. Instead, when Tonto wishes to place his money in safekeeping he gives it to Bill, allowing Bill to keep ten percent.

In addition to helping out Tonto, Bill regularly carries the free gunpowder for Annie to the saloon for when she meets Jesse. Jesse’s partner, Frank, works in the contract negotiation department of Bullet plc.




Advise Wild West Entertainment plc. [Do not consider any liability arising under the criminal law.]

Lily wishes to make the following dispositions to Heather and Fern. She seeks your advice as to the validity of the proposed dispositions and to any statutory formalities that may have to be complied with upon transfer.

(a) £500,000 to be divided between all the green-eyed babies born in Oldcastle in 1.

(b) 10,000 shares, the income of which to be used for twenty one years in any manner for talented doctors who live in Oldcastle. After twenty one years the capital derived from the shares may be distributed between the children of those doctors.

(c) A reasonable number of Lilys houses to be divided between her grandchildren



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