...IDIRECTOR’S DUTIES AND OBLIGATIONS Contents The Director’s are under the obligation to ensure the goods were insured in their duty to act with due care and diligence. 1 Area of Law 1 Principle of Law 1 Application of Law 4 Conclusion 4 The Company has been traded into insolvency. 4 Area of Law 4 Principle of Law 5 Application of Law 6 Conclusion 6 The Director’s Liability for insolvent Trading 7 Principle of Law 7 Application of Law 9 Conclusion 9 The Director’s are under the obligation to ensure the goods were insured in their duty to act with due care and diligence. Area of Law The area of law involved in this particular case to prove director’s duty to take due care is the Corporation Law. Principle of Law The Director’s duties fall under two categories the fiduciary duty and the duty to exercise care, diligence and skill while they are discharging their duties under the position. The Corporations Law provides that that a Director has to exercise reasonable degree of care and diligence while he is exercising his or her duties (Section 232 (4), The Corporation Law n.d.). If there is a failure to comply with the provision of 232(4) it leads to an offence punishable with fine up to $5000 and shall also lead to civil proceedings (Fisse 1992). Austin J was the first to review the statutory duty of care and diligence where the entire history of the same begins (ASIC v Vines 2003) (ASIC v Rich 2003). The circumstances which ae necessary in such...
Words: 2871 - Pages: 12
...Duties of Director: The duties of directors of a company have been elaborately explained by Romer L. J in Re City Equitable Fire Insurance Co[1]. The important duties are quoted from this case and summarized below: 1. Distribution of work: The manner in which the work of a company is to be distributed between the board of directors and the staff is a business matter to be decided on business lines. 2. Good faith: Every director must act honestly and in the interest of the company. 3. Reasonable care: A director “must exercise such degree of skill and diligence as would amount to the reasonable care which an ordinary man might be expected to take in the circumstances on his own behalf.” 4. Degree of skill: A director “need not exhibit in performance of his duties a greater degree of skill than what can be reasonably expected from a person of his knowledge and experience; in other words he is not liable for mere errors of judgment.” 5. To attend meetings: A director “ is not bound to give continuous attention to the affairs of his company; his duties are of an intermittent nature to be performed at periodical board meetings and the meetings of any committee to which he appointed, and though not bound to attend all such meetings, he ought to attent them when reasonably able to do so.” 6. The director’s duty of disclosure: The Companies Act of 1956 maakes it obligatory upon directors to disclose certain facts to the company: (1) If a director is interested...
Words: 1062 - Pages: 5
...export-promotion initiatives launched by the government in the early '90s. The basic purpose of the scheme was to allow exporters to import machinery and equipment at affordable prices so that they can produce quality products for the export market. The import duty on capital goods — like all other items — was high during that period, inflating the cost of capital goods nearly 50%, so the government allowed exporters to import capital goods at only 25% import duty. For waiver of the remaining portion of import duty, exporters were supposed to undertake an 'export obligation' (a promise to export) which was worked out on the basis of the duty concession obtained Exporters were given eight years to carry out their commitment to export. Once the 'export obligation' was fulfilled, the owner of the capital goods concerned could sell them or transfer them to another facility. Till the promised export materialised, the owners of the machinery or equipment were barred from even moving the goods concerned out of their manufacturing unit. Export Promotion Capital Goods (EPCG) scheme allows import of capital goods including spares for pre production, production and post production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue date. EPCG scheme covers manufacturer exporters with or without supporting manufacturer(s)/ vendor(s), merchant exporters tied to supporting...
Words: 1915 - Pages: 8
...EPCG SCHEME Export Promotion Capital Goods (EPCG) scheme allows import of capital goods including spares for pre production, production and post production at zero duty for specified sectors and at a concessional rate of 3% Customs duty for all sectors, subject to an export obligation ranging from 6 to 8 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 to 8 years reckoned from Authorization issue-date. Zero duty EPCG Scheme which had come to an end on 31-3-2012 has now been extended up tp 313-2013, for continued technological up-gradation of export sectors/units. Zero duty EPGC Scheme was not available to units that are availing the benefit of TUFS. Henceforth, even if the benefit of TUFS has been availed, additionally the zero duty EPCG Authorisation can be availed for another line of business by the same applicant. Further, if it is the same line of business, zero duty EPCG Scheme could still be availed if the benefit of TUFS already availed are surrendered/refunded with applicable interest. Similarly , the benefit of zero duty EPCG Scheme would be extended to Status Holders who availed the benefit of Status Holder Incentive Scrip (SHIS), provided they surrender the benefit with applicable interest. EPCG scheme covers manufacturer exporters with or without supporting manufacturer(s)/ vendor(s), merchant exporters tied to supporting manufacturer(s) and service providers. EPCG authorization holder can export either directly or through third...
Words: 821 - Pages: 4
...Political Obligation First published Tue Apr 17, 2007; substantive revision Fri Apr 30, 2010 To have a political obligation is to have a moral duty to obey the laws of one's country or state. On that point there is almost complete agreement among political philosophers. But how does one acquire such an obligation, and how many people have really done what is necessary to acquire it? Or is political obligation more a matter of being than of doing — that is, of simply being a member of the country or state in question? To those questions many answers have been given, and none now commands widespread assent. Indeed, a number of contemporary political philosophers deny that a satisfactory theory of political obligation either has been or can be devised. Others, however, continue to believe that there is a solution to what is commonly called “the problem of political obligation,” and they are presently engaged in lively debate not only with the skeptics but also with one another on the question of which theory, if any, provides the solution to the problem. Whether political obligation is the central or fundamental problem of political philosophy, as some have maintained (e.g., McPherson), may well be doubted. There is no doubt, however, that the history of political thought is replete with attempts to provide a satisfactory account of political obligation, from the time of Socrates to the present. These attempts have become increasingly sophisticated in recent years, but they have...
Words: 12818 - Pages: 52
...North South University LAW 200 (Business Law) Assignment 1 Submitted To: Barrister Arife Billah Lecturer, School of Business Date: 22 February, 2013 Submitted By: Arnab Paul ID: 1030818030 Section: 9 Title: The Law of Contract confines itself to the enforcement of voluntarily created civil obligations Abstract This assignment focuses to determine the relationship between the Law of Contract and voluntarily created civil obligations. It is intended to find out how contract law defines its scope within the enforcement of civil obligations. Civil obligations are raised from contracts, among several other sources of obligations. If the contracts are created voluntarily, the relevant obligations are thus voluntary. Since the contract law presumes that to create a contract there must be a common intention of the parties to enter into legal obligations, it is also assumed that the parties will enter into a contract voluntarily. When it comes to the discussion about civil obligations, contract law defines its boundary within the enforcement of civil obligations. This research paper was created with the motive to finding out how the contract law confines itself to the enforcement of civil obligations. Introduction We enter into contracts in our everyday general activities. Paying fare to the taxi driver amounts to entering into a contract. When you recharge your prepaid cell phone account, you have entered into a contract. You go to a restaurant and take snacks; you have entered into...
Words: 2058 - Pages: 9
...Introduction Is there an obligation in part of MNCs to be morally upright in the eyes of the world? How wide do moral obligations extend within the global context? MNCs are entities within states that have a large capability in the eyes of the moral law to aid, protect and serve the public. However, in the search for profit, many MNCs will do only as much as they have to in order to be morally upstanding and financially sound. According to some philosophers, including Marx, the public must be protected from and by all organizations in their respective capacity; this includes the state and MNCs that, more often than not, have more power than the states in which they operate. Take, for instance, an MNC in El Salvador, profiting from the affordability of the production process, profiting from the lack of limitations within this one ‘weak-state’ and profiting from the sales accomplished overseas. The state of El Salvador is much weaker than an MNC such as Nike; in this example then, the MNC has the obligation to better the conditions of the state, not deprive it, aid or neglect its social responsibility to uphold ethics while practicing enterprising. This essay questions the reasoning behind Donaldson in Rights and Kinds of Obligations, arguing that O’Neill has a more fair system of distributing the right aid for the protection of all rights. The main question then is: what is the moral obligation of MNCs in the global context after having reviewed both Donaldson and O’Neill’s articles...
Words: 2106 - Pages: 9
...Title: Fiduciary obligations may spring up by reason of relationships of trust and confidence or confidential relations. Introduction Fiduciary is an important issue arises in business relationships, in partnerships, it helps create a fair business environment for all the parties when working together, in agency, it protects the principles' benefits, in corporations, it may lead the business operates properly and legally. Therefore, fiduciary obligations are closely related to co-operations Trust and confidence are the most important elements in these fiduciary relations, in this essay, the relationship of a fiduciary obligation and above relations will be demonstrated and explained. Table of Content Introduction P.1 Table of Content P.2 The Basic Concept of Fiduciary P.3 Fiduciary Concepts and Obligation vs Partnership Relations P.6 Fiduciary Concepts and Obligation vs Corporate Relations 1. Directors P.8 2. Promoters P.11 Conclusions P.13 Bibliography P.14 The Basic Concept of Fiduciary Fiduciary, under oxford’s dictionaries’ definition, is trustee who is given control or powers of administration of property in trust with a legal obligation to administer the beneficiary’s interest, and the Cambridge dictionary defines “relating to the responsibility to look after someone else's money in a correct way”. It is obvious that the fiduciary concept involves the element of mutual...
Words: 2685 - Pages: 11
...Introduction The concept of fiduciary obligations or duty is one of the most important areas in Australian law. In this project, I will try to illustrate and explain the duties in three kinds of relationships including the relationship between a director and a company, the relationship between the promoters and the corporation and the relationship between business partners. In each relationship, what kinds of the fiduciary duties should be performed is elaborated in details. The aim of the project is to help the readers to understand what “fiduciary obligations” actually means in Australian law. Fiduciary Duty of Directors According to the general law and the Corporations Act ss181 -184, as fiduciaries, the directors must have the fairness, loyalty and good faith when they implement the discretions and powers entitled to them. They cannot use their position of trust to benefit themselves at the expenses of the business without the company’s consent and full knowledge. In other words, we can say since the directors are acting on behalf of their company, they owe the duties of loyalty and good faith due to the fiduciary relationship with the companies. In addition, refer to the Corporation Act ss180, and the case of Percival v Wright 1902, the directors owed duties to the company but not shareholders individually. On the other hand, in depth, the fiduciary obligations of the directors can be divided into four aspects: 1. Directors have the duty to act in good faith for the interests...
Words: 2683 - Pages: 11
...Kant is a strong representative of the theory named deontology; this concept emphasizes greatly on the idea of duty, the nature of obligation, and even what someone ought to do. Kant is quick to state how he feels about other theories when they are compared to this one. Unlike other theories this is not focused or fueled by good consequences but, by what is the right thing to do in a situation. Kant states that there is only one good thing here and it is known as good will. The good will is based on reason instead of sentiment like usual theories consist of. Kant is strong willed about the idea of duty that there are even classification of commands, these are known as hypothetical and categorical imperatives. Kant explains how hypothetical...
Words: 1174 - Pages: 5
...there is consideration of the ethical conduct that will help in realizing the best of the consequences. An individual using this method of consequences framework has an aim of producing the most good. The Duty Framework The duty framework method of coming up with ethical decisions focuses on the obligations and duties that are usually posed in different situations. The method considers the ethical obligations that individuals have and the things that they should never do. The method defines ethical conduct as fulfilling one’s duties and doing what is right. The main aim of the method is performing the right act. Section 2: The Duty Framework Decision Making Process The duty framework is the more preferable of the two methods discussed above. Firstly, the method presents a solid ground for the formulation of decisions. Mainly, it is due to the fact that most moral duties are standardized and an expected course of action is present for most of the situations. As such, justification of a course of action would be easy. It very much unlike the consequential framework where different situations will have their decisions made upon the personalities of the individuals faced by the dilemma and the environment in which the particular situation is presented. Secondly, the duty framework would provide a...
Words: 1028 - Pages: 5
...not be able to comply with my obligation to the University and the College of Commerce with this absence. The question is why do I have the obligation to the school to teach Law1, anyway? What is my relationship to the school such that it can impose consequences on my non-compliance? In other words, what is the source of my obligation to teach? In exchange, is the school obligated to do something for me in return or exchange for my duty? Your employment is an agreement that you and the University and the College of Commerce have; it imposed on you a positive personal obligation. You are an obligor, indebted to teach Law 1 to classes that the College, your obligee, assigns to you. Such obligations are sourced from your contract with the employer and the state laws on employment. In exchange for your duty, the University is obliged to pay you a salary considered fair by both you and the law. 2. “Family first,” we hear every now and then. In the case of one famous politician and cabinet member, it’s “famiLATE first,” because he has once said he does not take the train or the public commute even if the traffic will cause him to be late because he is the one bringing his kids to school every morning. Anyway, how about these familial obligations, the fact for example that I am driving my visiting eldest brother and his family today? The duty seems to come naturally, hence, a natural obligation. What is that? Is that even a legal obligation? Can you give other examples?...
Words: 378 - Pages: 2
...Western ethics is vastly influenced by Christian law-based ethics, which in turn gathered its legal ethical code from Judaism. As a result, as society's values have changed, the effectiveness of transcendent entities as rulers within law-based ethics to provide ethical agents with an obligation to obey the moral law has been brought into question. This essay will focus on Christian ethics, where 'transcendent entities' will refer to the Christian God, and 'law-based ethics' is the divine law set down by God within Christian scripture. To prove that God is necessary to provide ethical agents with a duty to follow the divine law, this essay will discuss God and humanity's nature, agents' need for a transcendent law-giver, the role that religion...
Words: 1787 - Pages: 8
...~ Revue de droit de McGill JUSTIFYING FIDUCIARY DUTIES Paul B. Miller* Fiduciary duties are critical to the integrity of a remarkable variety of relationships, including those between trustee and beneficiary, director and corporation, agent and principal, lawyer and client, doctor and patient, parent and child, and guardian and ward. Notwithstanding their variety, all fiduciary relationships are presumed to enjoy common characteristics and to attract a core set of demanding legal duties, most notably a duty of loyalty. Surprisingly, however, the justification for fiduciary duties is an enigma in private law theory. It is unclear what makes a relationship fiduciary and why fiduciary relationships attract fiduciary duties. This article takes up the enigma. It assesses leading reductivist and instrumentalist analyses of the justification for fiduciary duties. Finding them wanting, it offers an alternative account of the juridical justification for fiduciary duties. The author contends that the fiduciary relationship is a distinctive kind of legal relationship in which one person (the fiduciary) exercises power over practical interests of another (the beneficiary). Fiduciary power is a form of authority derived from the legal capacity of the beneficiary or a benefactor. The duty of loyalty is justified on the basis that it secures the exclusivity of the beneficiary’s claim over fiduciary power so understood. Les obligations fiduciaires sont essentielles pour assurer l’intégrité...
Words: 25852 - Pages: 104
...accountability represents organization, discipline, and control. Accountability becomes an obligation when you join the Army, it benefits every party involved. The importance of obligation with the Army. Your obligations given to you as a soldier are there to help you perform your duties, much like guidelines to success. Obligations within a workplace are there to benefit those associated within the environment, in this scenario obligation to report our location and actions being taken were there to help our leaders to guide us towards success since their jobs are to ensure we are doing the right thing and to have our best interest in mind. Being that we are obligated to follow orders it represents a moral requirement or promise to follow out a given action. Following out your obligations show military barring and professionalism which is expected of us by not only our leadership but the civilians in which we swear to protect all over the world. Obligations can be utilized to protect ourselves and those around us. An example being that if we are obligated to perform a certain task to a certain standard and under a specific coordinated planning, we ensure security and success with that task. On the other hand if we are given a task with no obligation and only a task in sight there lies an opportunity to abandon the security and success. While in war you would be obligated to perform your duties to the...
Words: 1597 - Pages: 7
