Relevant law-refer to the corporations act

Assignment Help Operation Management
Reference no: EM131147640

You are a director and member of a long established company. There are five members in your company and each member has 20% ownership in the company. The board, of which you are a part of, has delegated its executive authority to one of the other directors. Last week, this managing director purchased $1,000,000 worth of office furniture and art work for the office. The director in question was advised by an unqualified but experienced marketing guru that to attract more customers he should invest in modernising the appearance of the business. However, the company was already carrying financial debt of $800,000, and sales did not increase as a result of the refurbishment. The company is now nearing insolvency. Did the managing director breach any of his duties? Did the board of directors breach any of their duties? In your group of five, answer the question and upload your answer onto the discussion board. Consider the issues relating to director’s duties. Using the IRAC method to answer this question, outline the: 1. Issues: ie. Outline the facts of the case 2. Relevant Law: Refer to the Corporations Act (s. 180(1)), and the common law relating to: A. Duty of care i. What constitutes the duty? ii. Who owes the duty? iii. To whom is the duty owed? iv. Sources of duty of care? v. Standard of care (Daniels v AWA, ASIC v Healey) vi. Business judgment rule 3. Analysis of the case: ie State the arguments for both parties (the board’s arguments and the managing director’s arguments). 4. Conclusion: ie. the likely outcome.

Reference no: EM131147640

Questions Cloud

The expense involved in developing the initial molds : You are considering the possibility of starting a company to produce sailboats. Because of the expense involved in developing the initial molds and acquiring the necessary equipment to produce the boats, you have decided to conduct a market study to ..
How would an agreement template facilitate closing the deal : How would an agreement template facilitate closing this deal? How can you react to the particular demand for limiting your time at the site, which is totally unacceptable, but not risk losing the deal?
Answers multiple choice questions : Jolene, a manager, delegates the responsibility for a project to Lee, her subordinate.  Jolene is most likely involved in which function of the management process?
What should be the model tidal period : A tidal estuary is dominated by the semidiurnal lunar tide, with a period of 12.42 h. If a 1500 model of the e estuary is tested, what should be the model tidal period?
Relevant law-refer to the corporations act : You are a director and member of a long established company. There are five members in your company and each member has 20% ownership in the company. The board, of which you are a part of, has delegated its executive authority to one of the other dir..
Analyze two major pressures that a public leader faces : From the weekly readings and first e-Activity, analyze two major pressures that a public leader faces from shareholders, customers, stakeholders, and employees.
Identify three attributes of the law enforcement officer : From the e-Activity, suggest three measures that are recommended by either protocol, other police departments' use of force policies, or police academy training that could have been taken to address the armed criminal.
Discuss the potential for regulatory sanction : Analyse the following fictional scenario and discuss the potential for regulatory sanction and legal liability relating to privacy and various forms of contempt of court. Illustrate your discussion with reference to relevant examples and cases whe..
Difference -n research proposal and final research report : Discuss the difference between a research proposal and a final research report. Discuss the perceptions of the research "misconceptions" (what research is and is not). Explain your perceptions of the difference between theoretical and administrative ..

Reviews

Write a Review

 

Operation Management Questions & Answers

  Question 1assume that the following inventory problem fits

question 1assume that the following inventory problem fits the assumptions of the basic fixed-order quantity inventory

  What is meant by a green supply chain

What is meant by a Green Supply Chain? Identify in 200 - 250 words two techniques or processes that you could potentially propose to your organization's supply management group to become more "Green".

  Might be performed by international freight forwarders

Discuss four (out of eight) possible functions that might be performed by international freight forwarders.

  Elucidate how many immediate parents does item e have

Elucidate how many immediate parents (one level above) does item I have. Elucidate how many immediate parents does item E have. Elucidate how man unique components does product A have at all levels. Which of components are purchased items.

  Construct a decision tree and solve the tree

New Age is a large company that has been working on a new product. This product has tremendous potential, but New Age must move quickly. They have decided that they will introduce the product in two months and have already started developing their..

  Sustaining change in manufacturing companies

“Sustaining Change in Manufacturing Companies” review the list of eleven (11) factors which impact the sustainability of change. Reflect on a change that you implemented or was implemented at an organization with which you are familiar that was not s..

  In performing horizontal analysis

In performing a horizontal analysis on a company's income statement, you notice that sales have decreased by 4%, but the gross profit has increased by 10%. What are some factors that could cause this to happen?

  Highly respected manufacturer of a sought after perfume

A highly respected manufacturer of a sought after perfume has retailers willing to carry the manufacturer's complete cosmetic product line. This is an example of _____ power.

  The triple bottom line is considers the triple bottom line

The triple bottom line is considers The triple bottom line evaluation of which of the following:

  Briefly explain several guidelines for adapting marketing

Briefly explain several guidelines for adapting marketing and sales messages for social media.

  Ethics-how will you deal with accusations

You are working as DM of a district where illegal mining of sand is rampant. Recently there was an accident between a truck illegally carrying sand and a government passenger bus. what are your options? How will you deal with accusations? And how wil..

  Describe the contract management practices at a current

Briefly describe the contract management practices at a current or former employer using terminology and concepts from chapter 14. Textbook: Purchasing and supply chain management 6th edition by Monczka

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd