Company Law Table of Contents Company Law 1 Table of Contents 2 Question 1 3 Step 1 3 Step 2 3 Step 3 7 Step 4 7 Question 2 8 Step 1 8 Step 2 8 Step 3 10 Step 4 10 References 11 Bibliography 13 Question 1 Step 1 The case discussed in the paper of SamTrax Pty Ltd and the Compact Bank related to the Corporations Act 2001 (CTH) specifically pertains to the duties of the directors under the specified Corporations Act…
The duties as well as the obligations of the directors, workers and the other officers are encompassed in Sec 179 of the Corporations Act 2001 (Australian Company Incorporation Services 2012). The Corporations Act 2001 (CTH) is regarded as the company law that exists in Australia. The responsibilities as well as the duties of the directors are specifically mentioned under the law which needs to be abided by the directors of the companies. The laws that are believed to preside over the duties as well as responsibilities of the directors are considered to source or originate from three different areas. The stated areas have been identified as the statute law that is encompassed by the Corporations Act 2001 (CTH), the law made by the judges or common law and the constitution of a particular company (Australian Company Incorporation Services 2012). ...
he common law entail that they need to primarily carry out their activities in relation or compliance with the best possible interests concerning the company. The directors should not indulge themselves in any kind of activities that does not represent a proper or appropriate intention. The behavior of the director needs to be performed with care as well as adequate meticulousness. The directors are stated by the law to act in certain ways with the intention to keep away from any kind of disagreements relating to interests. It is also considered quite imperative for the directors to avoid or not get engaged in an activity that involves taking inappropriate advantage of their respective positions as well as information. Finally, it is expected from them to refrain from entering into any kind of business dealings while they are considered to be insolvent (Australian Company Incorporation Services 2012). Qualifying as a director under the Corporations Act 2001 (CTH) implies that few definite obligations as well as duties need to mandatorily perform by the directors. The violation of the mentioned obligations under the law would lead to strict legal actions against the directors. The directors are also required to discharge few fiduciary duties that are stated under the mentioned law. These kinds of duties that need to be carried out by the directors of the companies entail the rule out of misusing the position of the directors in order to attain any kind of an advantage with regard to their personal interests or even for some other individual. They need to take enough precaution while performing their activities in order to avoid any damage or loss with respect to the related corporation (Australian Company Incorporation Services 2012). The fiduciary duties prohibit the ...
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(Company Law Essay Example | Topics and Well Written Essays - 2000 Words - 1)
“Company Law Essay Example | Topics and Well Written Essays - 2000 Words - 1”, n.d. https://studentshare.net/other/9611-company-law.
The study helps to analyze the legal matters associated with the companies act and to distinguish between situations under which a person serving for the organization are held guilty and in situations where he is simply let off. It can concluded that the court of Law is very much strict with matters of fraud and punishes the convict and provides him with no opportunity to hide behind the reasons of serving his obligation for the company.
This paper seeks to perform an IRAC analysis of fraudulent phoenix activity, whereby the issue, rule, analysis, and conclusion will be made. Issue Australian corporate law has always sought to reinforce commercial and entrepreneurial risk taking, since these are essential to the creation of wealth, as well as the continuous functioning of the market (Adams, 2012).
Note however, that the arbitration system and enforcement capacities also have a role to play as far as business law is concerned. Under this sphere are the commercial courts and the specialized economic courts. They come in when transactions between parties are not honored.
The law outlines that directors cannot receive any benefit from their position, unless they obtain an express legal authority from the board to do so. The Companies Act outlines that a director of a company must to circumvent situations in which the director possess, or can manifest an express or indirect interest that diverges of may clash with the interests of the company.
It has been enforced with the intention to govern the operations of the corporate houses of the country and instructs them to operate with the best interest of all the stakeholders involved with them1. As per the Company Law, it is commonly admitted that company is a separate legal entity which advocates that the members of the company are distinct from the corporate body.
It is particularly owing to the fact that the extension of the case led to the foundation of the Salomon principles in relation to Company Law related statutes. The principle, in simple terms, implies that the company has been legally incorporated and accordingly it should be considered as an independent person with certain specific rights along with liabilities to guide its operations.
g the position of director, by whatever name called", which includes a person who is treated by the board as such despite not having been validly appointed. The law also recognises the concept of shadow director, which is defined by section 251.
In the shareholder-centred view
When legal provisions that govern the interaction of employers and employees are violated, or when either party fails to meet their legal obligations, lawsuits are highly likely to occur. In the Chandler v Cape plc  EWCA 525 case, a health and safety issue resulted in a
In other words, this verdict has provided a veil between an owner and a company and through this veil the owner would not be personally blamed or persecuted if corporate actions have been taken on behalf of the company; Thereby, the company would itself be
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