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Walter then set up a new company called Shopaholics Ltd (Shopaholics). Shopaholics was set up for the purpose of purchasing the land, at a substantial overvalue from Westfield, with funds raised from the public issue of its shares. The shareholders were not aware of Walters connection to Westfield. Westfield sold the land to Shopaholics at a substantial profit. Shopaholics then sought to redevelop the land and construct a large shopping complex on the land. The profit on sale of the land made by Westfield was distributed to Walter in the form of a dividend. Unfortunately, the development plans for the land were rejected by the Gold Coast City Council. Shopaholics failed and the liquidator seeks advice as to what action can be taken to recover the profit made on the sale of the land to Shopaholics.

Select the most appropriate response.

	a.	The liquidator cannot recover the secret profit made on the sale of the land as it has already been paid to Walter in the form of a dividend
	b.	The liquidator cannot recover the secret profit because Walter and Westfield are recognised as separate legal persons under the Corporations Act 2001 (Cth)
	c.	The Court would lift Westfields corporate veil and require Walter to pay back the profit to Shopaholics because Westfield was used by Walter to commit a fraud
	d.	Both (a) and (b) are correct

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