Introduction: Section 2(13) of company’s act defines a director may be defined as a person having control over the direction, conduct, management, or superintendence of affairs of a company. Any person in accordance with whose direction or instructions, the board of directors of a company is custom to act is deemed to be a director of a company. Section 2 (6) of the company’s act states that the directors are collectively referred to as board of directors are simply the borad. Directors being pillars
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management and breach of fiduciary on the part of the director? Yes, there abuses of power by the management and breach of fiduciary on the part of the director. Abuse of power is the act of using ones position of power in an abusive way, this can take many form such taking advantage of someone, gaining access to information that should not be accessible to the public or just manipulating someone with the ability to punish them if they do not comply. Breach of fiduciary duty is people in position
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Issues Based on the case scenario, Doris, Betty, and Charlie formed a company called Bechdo Pty Ltd. The three members are the directors and Betty who is major shareholder holds 40% followed by Charlie and Doris who hold 20% each while the 20% is held by the rest. Based on the company constitution, a managing director has capacity to enter into a contract o behalf of the company up to a maximum of $100,000. Moreover, he/she can enter into contracts to the value of $900,000 upon getting consent for
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Article Summary ENLARGING AN EMPLOYER'S FIDUCIARY HAT: VARITY CORP. V. HOWE INCREASES EMPLOYERS'; EXPOSURE TO LIABILITY WHEN THEY ACT AS ERISA FIDUCIARIES -Shelly Ward - Ward’s article discusses the circumstances surrounding the 1996 Supreme Court case: Variety corp. V. Howe - The court ruled that an individual may recover damages stemming from the a breach of fiduciary duty by a plan’s administrator - Ward explains that ERISA’s principles were based on the common law governing trusts; trust
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of fiduciary on part of director? Yes, there is abuse of power by the management and breach of fiduciary duty of director. A fiduciary is define as someone who is in control of property in which others have an interest, or is given a power which is exercised on behalf of those who are in a position of dependence. As stated in Section 132 (1) of Companies Act 1965; a director shall at all times act honestly and use reasonable diligence in the discharge of the duties of his office. Fiduciary duties
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Factual Scenario 1 Jeremy Jip is not considered Lulu’s employee. Based on the criteria used by the courts to decide whether a worker is categorized as an employee or independent contractor, Jeremy wouldn’t be considered Lulu’s employee. He would be considered an independent contractor because Lulu has no control over the details of Jeremy’s work performance. She does not exercise considerable control of his work, his occupation is distinctly different from that of Lulu’s, his work is usually done
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Business Ethics John A. Goodman was a real estate salesman in the state of Washington. Goodman sold to Darden, Doman & Stafford Associates (DDS), a general partnership, an apartment building that needed extensive renovation. Goodman represented that he personally had experience in renovation work. During the course of negotiations on a renovation contract, Goodman informed the managing partner of DDS that he would be forming a corporation to do the work. A contract was executed in August between
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Introduction: This essay is consisted of Part A and Part B, includes three tasks in total. In Part A it will discuss the feature of a fiduciary relationship and disclosure some duties owned by company directors, such as the duty to act in good faith in the best interests of the company, the duty to avoid conflicts of the interest, the consequences of breaching a duty by directors and some defences for the company’s director. After that, in Part B the article will talk about some issues arise from
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Bubba Tech, inc (BTI) [Study Case] QUESTION 1 Based on the limited facts of this case, prepare a list of the operational issues to present the top management at BTI. Include in your list any corporate governance issues of importance in relation to the management of BTI after it becomes a public company and any issues related to the relationship between BTI and Randy Burnham & Co. ANSWER: Referring to the case of Bubba Tech, Inc. (BTI), there are several operational issues to be presented to
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