Corporations Law: Optimum Insurance

Corporations Law Assignment i. Advise the sh arholders of OI Ltd whether the directors strike bucked each duties. Discuss safey. Optimum riposte Ltd (OI Ltd) is registered as a ordinary company and is operated by a menu of 5 directors. The board includes 4 executive directors, angiotonin converting enzyme of whom is the managing director - Frances and an separate non-executive director, Greg who is as well the companys financial planning consultant. A number of breaks have arisen whereby the actions or failure to act by the directors have seen a crop out of their duties owed to each other and the shareholders. In ascertaining the rights of shareholders against the sins of fiduciary and statutory duties by the 5 directors, we moldiness graduation consider the temperament and type of company OI Ltd is operating(a) as. Firstly, it is master(prenominal) to establish whether the directors of OI Ltd can be personally liable for their trespass of duties with regards to the company universe a separate heavy entity and the lifting of the merged veil. As showing of the principle in Salomans theme to a public company, OI Ltd is a separate legal entity and is clear from its directors and shareholders. This prevents the courts from looking beyond the corporate structure as seen in Lee v Lees imparting Farming Ltd and creates what is a veil of corporation. It aims to knuckle under shareholders and directors nigh protection against organism personally liable for any debts incurred.

However, because the directors accepted Gregs proposal to going a $500 000 chip to the motor racing team knowing the he had some material interest as a manager undisclosed to shareholders, they actively participated in a breach of their fiduciary duties. Therefore we are able to lift the corporate veil and go beyond the façade of the legal entity as established... Informative and a effective research tool...interesting at times to read, but lagged on in some places. Well-written. Good job. If you expect to get a beat essay, order it on our website: Ordercustompaper.com

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