Attitude Ltd wholly owned subsidiaries
Attitude Ltd has several wholly owned subsidiaries, including Natura Ltd and Stone Constructions Ltd. The directors of Attitude Ltd are Sam White, Jim Adams, and Samuel Anthony.
Sam, Jim and Samuel are also directors of the two subsidiaries, Natura Ltd and Stone Constructions Ltd. Due to a road widening scheme which form part of the Metro Project, the government has decided to compulsorily acquire a plot of land which belongs to Natura Ltd.
The compensation to be granted has not yet been finalised. Stone Construction Ltd which specializes in the construction of residential houses has sustained considerable losses owing to a downturn in the economy. The creditors of Stone Constructions are demanding that Attitude Ltd as the holding company to pay the debts of its subsidiary. If Stone Constructions does not receive financial support from Attitude Ltd, it will go into liquidation.
Advise Attitude Ltd as to whether:
(i) it will be entitled to receive compensation for the compulsory land...