________________________________________ ‘Do directors have to be accounting standard gurus?’ ‘How do directors spot the ticking bomb buried deep in a massive board pack? These are some of the questions making top headlines following the Centro case decision made by Justice Middleton of the Federal Court on the 27 June 2011. The issue of contention was whether the directors had sufficiently carried out a review of the financial statements, and if they had, whether the information was consistent with the directors’ knowledge
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[that] results from the manifestation of consent by one person to another that the other shall act in his [or her] behalf and subject to his [or her] control, and consent by the other so to act.” When used as a noun, it refers to a person having a duty created by his or her undertaking to act primarily for another’s benefi t in matters connected with the undertaking. When used as an adjective, as in the phrase fi duciary relationship, it means that the relationship involves trust and confi dence
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[pic] Corporation Law BULAW 5915 1/22/2013 Suneel Younis Mughal Ub 300 92 001 1.0 Corporate Governance Corporate Governance practice aim to ensure that the board is accountable to stakeholders, especially shareholders, and that management is accountable to the board (Lipton, Herzberg & Welsh, 2010).It is helpful to an understanding of corporate governance to appreciate that it is concerned with how corporate entities are governed as distinct from the way the businesses within those
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Liability of the members in relation to the obligations of the business organisation Sole proprietorship The sole proprietor and the owner is regarded as the same entity. Therefore, the owner has unlimited liability in relation to the obligations of the business organisation. This would be a disadvantage as the owner’s personal assets are at risk as the owner is personally responsible for all debts and obligations of the business as regarded by law. Partnership Same as above. Limited
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the last paragraph and whether or not the board of directors can use their position on the board of the Energy Cooperative for personal gains by stating "I am calling as director of the Energy Cooperative" -the board of directors are self employed consultants with no allegiance (duty) to any particular company. Each director signed something to this effect. Therefore, the ethical issue is: Is this a conflict of interest, where the board of directors would be using their positions for personal gains
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Ltd v. FAI Insurances Ltd P3.20 * Defensive actions during hostile takeover – although the directors acted honestly and in good faith they exceeded their power and used their power for an improper purpose. * Company funds being used by directors to conduct re-election campaigns Aberdeen Ry v. Blaikie P3.23 * Contract between the company and a partnership, of which one of the directors was a partner, was held to be void at the instance of the company, notwithstanding that its terms
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position in an organization, be it a director or an officer, must be very careful about their role in the company and all the responsibilities they have should be carried out with a degree of great care and persistence. This section highlights the importance of the directors and the office they hold. S 180(2) also defines the responsibilities of a director but it provides a relief to the directors in a way that while running a huge business, sometimes directors come across such instances where they
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Running Head: Corporate Duties Corporate Duties Nicole Sherwood BUS670: Legal Environment Alexis Hooley March 26, 2012 Abstract Corporations are intricate entities and require many people to aid in its success. The main groups that actively contribute to the corporation are the directors, officers, and shareholders. Each group is vital to the success of the organization. A corporation is a company in the marketplace and is comprised
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Kombabawa have breached the duties of directors. 2. Whether Aaron has breached the duties of directors 3. Whether Duffy has breached the duties of directors. 4. Whether Frederick has breached the duties of directors Relevant Law Directors’ duties include statutory duties, common law duties, duties in equity and fiduciary duties. The court will probably examine all of them in determining whether the defendant has breached the duty of directors. Statutory duties Sections 180 to 1841
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scenarios of two different torts. The first tort will be Breach of Fiduciary Duty. The paper will also show how Breach of Fiduciary Duty can be avoided and how the situation could have been avoided. The second tort will be Injurious Falsehood. This paper will also show how Injurious Falsehood can be avoided and how the situation could have been avoided. Breach of Fiduciary Duty Corporation A files for bankruptcy. The directors of the corporation recommend what seems to be a good restructuring plan
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