governed by common law and equity and recently‚ have been codified under Part 10‚ Chapter 2 of Companies Act (CA 2006). These duties are based on the law of trusts and agency and can be broadly categorised as directors’ fiduciary duties and the duty of care and skill. The four fiduciary duties of directors are the duty to act bona fide; duty to exercise powers for a proper purpose; duty not to fetter discretion in the exercise of powers; and duty not to place oneself in a position where personal interests
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Legally it will be wrong to invest in the company since some of the directors including myself Mr Simmon have interest in CarTrack Development‚ which is a breach of discharging my fiduciary duties to CCRADS. My position is for the investment to be laid on neutral ground without any personal interests in the eyes of law; some of the directors like us should resign (Schaffer‚ Agusti & Dhooge 2014). If not resigning and allowing other
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On Monday‚ September 22‚ 2014‚ a Darden Restaurant shareholder filed a suit against the Darden board of directors on grounds that the sale of Darden’s Red Lobster division was harmful. The suit was filed in Florida by Teamsters Local 443 Health Services and Insurance Plan of Connecticut. This lawsuit is the second of two lawsuits that that Teamster has brought against Darden‚ the first was a suit for violating company bylaws. Teamsters alleged that Darden mislead the shareholders when it informed
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“If [a banker] undertakes to advise he must exercise reasonable care and skill in giving the advice. He is under no obligation to advise‚ but if he takes upon himself to do so‚ he will incur liability if he does so negligently.” ’ House of Lords in Banbury v. Bank of Montreal[1] I. Introduction The issue of legal liability of banks in the provision of negligent advice is one doctrine of law that has evolved through the years. In light of current controversies hounding the UK banking
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I. Agency (Chapter 1) A. Who is an Agent i. Agency Definition Agency is a fiduciary relationship which results from the manifestation of consent by one person to another that the other shall act on his behalf and subject to his control and consent by the other to so act. 1. Contractual relationship is not necessary‚ nor do either need to receive compensation 2. Agent - the one to act 3. Principal - the one for whom action is taken 4. Agency means more than mere passive permission; it involves
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corporations do not have responsibilities • In fact‚ this kind of thinking can lead to the downfall of capitalism A Stakeholder Theory of the Modern Corporation by R. Edward Freeman • Managers do not have a duty to stockholders but they have a fiduciary relationship with stakeholders. o stakeholders have an interest in‚ and must
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2.0 INTRODUCTION In 1981‚ Delima Enterprise was founded by Encik Zayed in conducted trading and supplying related product including manpower supplies to oil and gas industries. In 2004‚ Delima Enterprise incorporated as Delima Enterprise Sdn Bhd. It has two principal shareholders and controlling director who is Encik Zayed and Puan Hashimah. Both of them are husband and wife. In 2006‚ the company submitted application to get a loan since the company gets several contract. The director of Delima
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Definition – the law of Trust determines the relationship among trustee‚ trustor and beneficiaries over the property. Trustor means owner of the property‚ which enjoys extended bundle of rights over his property. Trustee is a person who manages the property. Beneficiary: A beneficiary is anyone who receives benefits from any assets the trust owns. We have two types of trust. First division of types: First is Inter Vivos - the management of the property during one’s lifetime. Mortis Causa –
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(Richards-Gustafson‚ (n.d‚ para 1). (b) Describe the traditional view of corporations? (7mrks) Traditional view of corporations held that the shareholders or stockholders are the owners of the company‚ as such; the firm has a binding fiduciary duty to put their needs first‚ increasing value for them (Miles‚ 2011‚ para. 1). This view‚ also known as the shareholder view believed that corporations existed solely to serve the interests of shareholders. It was largely an economic view‚ with
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company‚ the connection between her and Batco before and after the registration was solid. According to Aequilas v AEFC (2011) 19T ACLC 1006‚ the legal consequence of a person being identified as a promoter is that such person owes stringent fiduciary duties to the company and its shareholders. They are required to act in good faith and place the company’s benefits over their own (Harris‚ Hargovan and Adams 2011). More specifically‚ in Erlanger v New Sombero Phosphate Co (1878) 3 CA 1218‚ the
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