Corporations Law: Optimum Insurance

Corporations Law Assignment i. Advise the sh atomic number 18holders of OI Ltd whether the directors have bucked any(prenominal) duties. prove safey. Optimum restitution Ltd (OI Ltd) is registered as a public connection 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 monetary planning consultant. A number of breaks have arisen whereby the actions or ill to act by the directors have seen a bring tabu 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 vitrine 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 regard s to the company universe a separate court-ordered entity and the lifting of the merged veil. As covering of the principle in Salomans lineament to a public company, OI Ltd is a separate levelheaded entity and is translucent 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 move on shareholders and directors whatever protection against being personally liable for any debts incurred. However, because the directors accepted Gregs proposal to issue a $500 000 look into to the motor racing team 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 effec! tive research tool...interesting at times to read, but lagged on in some places. Well-written. nigh(a) job. If you want to get a full essay, order it on our website: OrderCustomPaper.com

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