The role of a director of a company carries with it much legal responsibility This is the topic that will be discussed in this essay. It will begin with a definition of what a director is, followed by the relevant legislation. I will go on to discuss the different types of directors in a company followed by the main duties directors owe to a company. I have taken a look then at the powers directors have in a company and ended this topic with the personal and criminal accountability directors
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helping it to sell bonds. He was then ordered to compensate HK$23.9 million to investors who sold him shares in 2007 after his conviction with his assets frozen by SFC at the same time. 2. Causes and Antecedents 2.1 Breach of fiduciary duties Du’s failure to perform his fiduciary duty can be attributed to an easy access to nonpublic securities in the company. He was made privy to the details of the pitching exercise of Kazakhstan acquisition and handled a lot of confidential e-mails related to the project
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options for terminating an agency relationship. Beside that Joan, as an agent, had fiduciary duty to his father and moving the property that his father had already sold, to her trust is against the principal’s needs. Beatty (2008) stresses that the purpose of this relationship is for one person as an agent to benefit the other as principal. Joan had this obligation when she became his father’s agent. In fiduciary duty, the agent
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these duties also bind any person lawfully authorized by the directors, to act on behalf of their behalf. At common law, the duties of directors fall into two categories: the duty of care and skill in the conduct of the affairs of the company; and fiduciary duties of good faith and loyalty. In establishing the level of care and skill, the court in Re D’Jan of London Ltd. stated that a director only has to exercise the degree of care and skill reasonably expected of them in the circumstance. A similar
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opposing views from Milton Freidman and John Boatright. Edward Freeman, having a Kant view, sees Project Share as contributing value to the various groups that are connected to NYSEG including shareholders. Project Share is consistent with its fiduciary responsibility to its shareholders. Project Share utilizes non-maleficence, beneficence, justice, and autonomy by ensuring that customers who cannot pay their bills on time have financial aid. This also creates value for NYSEG by becoming a positive
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Company Law for Business: Assignment 1 (i): Is the cat contract with Feline Fertility Pty Ltd enforceable? Your answer should include an analysis of the reason put forward by Lassie Ltd for terminating the contract. The area of law relating to this particular question is the Corporations Act 2001 section 124, which mentions the legal capacity and powers of a company, and section 125 (2), which refers to a company's objects within its constitution. As Lassie Ltd is a company, it is a separate
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In the article by Bebchuk, L., Coates IV, J., Subramanian, G., (2002): The Powerful Antitakeover Force of Staggered Boards: Theory, Evidence, and Policy, Stanford Law Review 54, 887-951 (the “Article”), the authors supported the notion towards the declassification of board of directors. There is a movement towards eliminating staggered board in favor of unitary board based on researches that staggered board was harmful to the shareholders and the company. It was initially believed that the combination
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enterprise-wide risk is absolutely important. Director should responsible for enterprise risk management, identify potential risks and manage risk within the risk appetite and protect their shareholder’s value. These responsibilities can also involved fiduciary part, be loyalty and care their clients’ interest is needed. However, JP Morgan’s director is not sufficient responsible for their duty, internal board arrangement need to be changed and improved. The performance of JP Morgan’s risk management
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partnership’s contracts with the independent-contractor auditors and signed many of these auditors with his new firm. The partnership terminated about 11 months after Fial wrote the letter to Steeby. Steeby brought an action against Fial, alleging breach of fiduciary duty and seeking a final accounting. Who wins? Steeby v. Fial, 765 P.2d 1081, Web 1988 Colo.App. Lexis 409 (Court of Appeals of Colorado) PARTIES In the Steeby vs. Fial case Roger Steeby is the plaintiff and Charles Fial is the defendant. Steeby
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Question 1: provide a definition/ description of strategic planning process, addressing the critical issues/questions the process takes into account. Answers (a) Strategic planning process is an organization’s process, which is designed to identify a long-term goal or direction to develop the organization, and put into practice. Strategic planning guides conversations about an organization’s purpose, helps integrate perspectives from multiple stakeholders, and provides the steps to develop goals
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