StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Organisation law case study - Research Paper Example

Cite this document
Summary
Organisational Law Case Study Part A In our problem, Su and Yana, the directors of the company Free Spirit Pty Ltd, had taken improper decisions such as to purchase the sports equipment from a company named Sporting Edge Pty Ltd. This company was owned and controlled by Yana and Su…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96% of users find it useful
Organisation law case study
Read Text Preview

Extract of sample "Organisation law case study"

Download file to see previous pages

This clearly indicates the intention of Yana and Su to promote their own company’s interests rather than the interests of Free Spirit Pty Ltd. Yana Yana is an executive director of the company. To determine whether she had fulfilled the obligations as a director, prescribed by the provisions of the Corporations Act 2001 and the common law, the following issues have been taken up for discussion. The Corporations Act 2001 requires directors to exercise due care and diligence during the discharge of their duties towards the company.

This has been specified under Section 180 of this Act. Such due care entails protecting the interests of creditors and the interests of the shareholders when the company is expecting to become insolvent. This was held in the Credit Lyonnais case (Keay & Zhang, 2008, p. 142). The duties of company’s directors are specified under Sections 180 to 184 of the Corporations Act 2001 (Muscillo, 2009). Section 180 of this act protects directors who take decisions in good faith and for a proper purpose or when they reasonably believe that their decision will further the best interests of the company (Tesarsch and Tiller, 2010).

It is incumbent upon directors to act solely for the bona fide purposes of a company. This was the gist of the ruling in Howard Smith Ltd v Ampol Ltd (1974). A director is liable if he relies on the information provided by others and as a result fails to notice mismanagement in the conduct of company affairs. Whenever there is an attempt to embark upon a very risky venture, directors of the company are required to be sufficiently circumspect. This was the ruling in Daniels v Anderson (1995). As such, in Australian Securities and Investments Commission v Macdonald (2009), the Supreme Court of New South Wales had to determine if a breach of duty toward their company had been committed by the officers and company directors of James Hardie Industries Ltd.

In particular it was to be ascertained whether the duty of care and diligence stipulated in Section 180(1) of the Corporations Act 2001 had been breached due to the provision of a defective media statement to the Australian Securities Exchange regarding the ability of the company to meet certain future liabilities (Hargovan, 2009, p. 986).The Supreme Court ruled that these directors and officers of the company had breached their duty of care. In addition, the court also held the company in breach of its statutory obligations under the continuous disclosure provisions.

A director has to comply with the requirements of the business judgement rule in order to obtain protection under Section 180 (2). As Yana had acted in a manner that was detrimental to the interests of the company, she cannot resort to such defence. She had purchased sports equipment at a higher price from her own company, and this clearly indicates the absence of loyalty and due care on the part of Yana. She has decided to expand the business of the company, Free Spirit Pty Ltd, to Alaska without assessing the legal and financial aspects of the company in that area in the future.

Yana has breached the duties of good faith and due diligence, as per the provisions of the Corporations Act. She cannot evade liability for violation of the provisions of fiduciary duties of directors under the Corporations Act and common law. As per the decided case law, she is liable for breach of fiduciary duties, due care and diligence. Su Su is the finance director of the company Free Spirit Pty Lt

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Organisation law case study Research Paper Example | Topics and Well Written Essays - 2500 words”, n.d.)
Organisation law case study Research Paper Example | Topics and Well Written Essays - 2500 words. Retrieved from https://studentshare.org/law/1401093-organisation-law-case-study
(Organisation Law Case Study Research Paper Example | Topics and Well Written Essays - 2500 Words)
Organisation Law Case Study Research Paper Example | Topics and Well Written Essays - 2500 Words. https://studentshare.org/law/1401093-organisation-law-case-study.
“Organisation Law Case Study Research Paper Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/law/1401093-organisation-law-case-study.
  • Cited: 1 times

CHECK THESE SAMPLES OF Organisation law case study

SABMIller's Case Study

A close analysis of the case study shows that this is one of the major strengths of SAB since it is able to merge with established breweries.... In some instance as highlighted in the case, devaluation of the local currency in developing economies may have negative impacts such as the reduction of profitability....
12 Pages (3000 words) Case Study

Employment Law: Janets Rights

The given case study of Jami Jensen is a clear case of sexual… Sexual harassment and racial discrimination are the two issues involved in the given case.... In the given cases, the sexual harassment or the The case study clearly says that several interview board members stared at her including the Mr.... In other words, the sexual harassment case of Jami started from the interview itself.... According to the Employment law in Georgia, Direct sexual conduct--an employer makes sexual advances or statements, "Quid pro quo" - job-related benefits are offered in exchange for sexual conduct, Hostile work environment--an employer maintains an overly sexual work environment etc are prohibited under the sexual harassment law in Georgia (Employment law in Georgia)....
4 Pages (1000 words) Case Study

The Elements of Gross Negligence Manslaughter

An example of a case of Donoghue v Stevenson (1932) HL, Mrs.... A case of Khan, R v [1993] CA, the defendant, a drug dealer gave heroin to a 15-year-old girl.... hellip; The law requires that the relevant duty of care is under the law of negligence.... However, its application is not affected by common law rules excluding liability in the law of negligence where people are connected in a criminal In this context, the employer can be prosecuted if the worker died or he or she is an illegal immigrant....
7 Pages (1750 words) Case Study

Analysis of Case Concerning Childrens Rights

The case entails stressful situations that I undergo as a 16-year-old girl.... Article 1 of the UNCRC terms a child as an individual aged below 18 years unless excluded by a special law in any country setting the legal age to be lower than that.... Further, Article 2 of the UNCRC demands non-discrimination of a child or an end to any form of unfair treatment… Article 3 of the UNCRC defines the best interest of a child that must form the primary concern during any decision, the policymaking process, or legislation formulation....
4 Pages (1000 words) Case Study

Analysis of Company Law Case

It can either be for the regulation of commercial fields by the laws of… I carried out a case study about three businessmen with varying capabilities, strengths in terms of finances and expertise. A limited liability ny is a commercial organization that joins the pass-through taxation of a sole proprietorship or partnership with the limited liability of an organization.... Business law constitutes a body of rules, whether by agreement contract, agreement, or nationwide or global legislation, that administer the transactions between persons regarding commercial dealings....
7 Pages (1750 words) Case Study

Organisational Issues in Project Managed Environments: IKEA

With the help of a case study on IKEA, the report will attempt to analyze the challenges faced by international managers in the process of keeping up with the demands of multiculturalism The report addresses the advantages of Host Country National recruitment over expatriation of Parent Country Nationals to better perform in the international realm.... With the help of a case study on IKEA, the international chain of home and office furniture stores, the report will attempt to analyse the challenges faced by international managers in the process of keeping up with the demands of multiculturalism, a direct consequence of globalisation....
13 Pages (3250 words) Case Study

Employment Law in Britain

This work called "Employment Law in Britain" describes a case study that is also affiliated to the employment laws and strived to deduce the most appropriate actions that can be taken as provided by the law.... This paper is an analysis of a case study that is also affiliated to the employment laws and strived to deduce the most appropriate actions that can be taken as provided by the law.... he initial consideration to be made in the case of Raj is to establish the type of employment he is in at the organization....
8 Pages (2000 words) Case Study

Analysis of Business Law Case

The author of the paper titled "The Analysis of Business law case" examines the agreement that the LLC has signed and all the issues with regard to the concerns of the four partners and the other nine investors that Jorge is bringing are taken care of.... hellip; According to Mallor (933), a Limited Liability Partnership is a partnership whose partners have applied and qualified for limited liability status....
6 Pages (1500 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us