Company handlers dutiesa ) As music directors of X Ltd , Brendan , rapture and David s duties of vexation in the management of the company are determined by justness , familiar law and statute . In this case , the directors furbish up on have held different positions according to which the exemplification of care result now be examined But at the source , it stomach be said that all the three Brendan , transport and David did non exercise the criterion of care , acquirement and diligence . As per section 174 of the Companies Act , directors are expected to bestow somewhat care , skill and diligence as can be expected of a person with command fill inledge , skill and experience in discharging the functions of the management of the company . This is a bump of the subjective and objective test laid down in sectio n 214 (4 ) of the Insolvency Act 1986 . The provision of the Companies Act is more shite which has marked the end of subjective test prescribed by the case law in City Equitable wake up Insurance Company Ltd Re (1925 . Hence this provision gives a nominal standard on objective basis in the case of an ordinary person and this standard can be raised on subjective basis depending on the tautologic skill and turn inledge possessed by an individual director of a company . The Act is silent whether this is a common land law duty or equitable duty save section 178 says that it is not a fiduciary duty piece 170 says that this duty is owed to the company and not to the members of the company . In Elgindata Ltd . Re (1991 , it was held that members could not expect that Managing conductor should have had the standard of public management and that quality of management involved general risks in investingBrendanBrendan is the Managing Director who is expected to be in the know of all things concerning the company .
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There can be zip which can happen without his knowledge unless it is a calculated abortive activity indulged in by any other directors , officers or employees of the company . Its large-scale losses were suppressed in the books by Brendan and by so concealing , he managed to get gold in hand from Merilla as share capital and excessively a contribute of ? 10 million from the Bank . later on Brendan hid the fact from Adam also when he questioned him at the vitrine of company s financial controller Sereka . Brendan s conduct was therefore pass on and fraudulent and he did not discharge his duties to the company he owed to it as its Managing Director . As the company had long forward beco me bankrupt due to losses which Brendan managed to conceal until it was confirm by the executive , his conduct of fraudulent trading attracts disqualification as director for minimum 2 years and maximum 15 years as per the Company Directors Disqualification Act 1986 . A indispose person is not permitted to act in any utility(a) capacities such as a promoter during the period of disqualification as held in ex officio Receiver v Hannan (1997 ) In UK law...If you indispensableness to get a full essay, order it on our website:
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