Question BUS328 Company Law Q Gigi is an employee of Shiba Pty Ltd. Shiba Pty Ltd operates a factory that manufactures S20L16U8G23. S20L16U8G23 is a nitrogen-based chemical widely used in plastics manufacturing. All of the shares in Shiba Pty Ltd are owned by Chow Ltd. Shiba Pty Ltd only has assets of $10,000. Most of the assets used in the manufacture of S20L16U8G23 (such as the factory, laboratory equipment and central machinery) are leased from Chow Ltd.

Gigi is a research assistant who has worked in Shiba Ltd's factory for the last 10 years. She was recently diagnosed with a rare form of kidney disease. Gigi and her doctors believe that her constant exposure to the chemicals involved in the manufacture of S20L16U8G23 caused her kidney disease. Gigi is angry that she was never warned about the risks associated with her job and wants compensation of at least $3.5 million given her reduced life expectancy.

(a) Can Gigi sue Chow Ltd for compensation for her illness? (5 marks)

(b) Would your answer be different if you knew that the directors of Chow Ltd are the same as the directors of Shiba Pty Ltd and that they incorporated Shiba Pty Ltd to isolate Chow Ltd from the risks associated with the manufacture of S20L16U8G23