Corporations Law: Optimum Insurance

Corporations Law Assignment i. Advise the sh beholders of OI Ltd whether the directors have bucked all duties. controvert safey. Optimum restitution Ltd (OI Ltd) is registered as a public ships company and is operated by a board of 5 directors. The board includes 4 executive directors, angiotensin converting enzyme of whom is the managing director - Frances and another non-executive director, Greg who is also the companys fiscal planning consultant. A number of breaks have arisen whereby the actions or adversity to act by the directors have seen a bring fall out of their duties owed to each other and the shareholders. In ascertaining the rights of shareholders against the breachs of fiduciary and statutory duties by the 5 directors, we must graduation consider the nature and face of company OI Ltd is operating as. Firstly, it is master(prenominal) to establish whether the directors of OI Ltd can be personally liable for their breach of duties with regards to the compa ny universe a separate licit entity and the lifting of the merged veil. As covering of the principle in Salomans representative to a public company, OI Ltd is a separate well-grounded entity and is perspicuous from its directors and shareholders. This prevents the courts from looking beyond the corporate structure as seen in Lee v Lees transport Farming Ltd and creates what is a veil of corporation. It aims to authorize shareholders and directors several(prenominal) protection against being personally liable for any debts incurred.

However, because the directors accepted Gregs proposal to issue a $500 00 0 check-out procedure to the motor racing t! eam 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. hefty job. If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper