Nobody downloaded yet

The prosecution of James Phang Wah and Jackie Hoo Choon Cheat directors of an insolvent company, Sunshine Empire - Essay Example

Comments (0) Cite this document
Summary
The researcher of this article reports on the prosecution of James Phang Wah and Jackie Hoo Choon Cheat’ directors of an insolvent company, Sunshine Empire, a multi-level marketing company that sold packages while promising higher returns…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.8% of users find it useful
The prosecution of James Phang Wah and Jackie Hoo Choon Cheat directors of an insolvent company, Sunshine Empire
Read TextPreview

Extract of sample "The prosecution of James Phang Wah and Jackie Hoo Choon Cheat directors of an insolvent company, Sunshine Empire"

Download file to see previous pages This paper illustrates that the firm swindled investors who bought lifestyle packages. The firm also promised investors returns which were not from genuine profits but were actually funds recycled from new members joining the scheme. These two scenarios constituted criminal law. Another case is where Phang’s wife was paid a commission of nearly 950,000 US dollars for her work as the company’s group sales director, a job she never had or did. Sunshine empire was a corporation. Therefore all its operations were governed by the corporations’ law that existed. Some of the requirements of this law are proper maintenance of books of accounts. This company never kept proper books of account. On the other hand, a company is normally formed with the sole object of not dealing in illegal trade. The company also breached this by processing uncensored and obscene films. All these cases led to the breach of corporations’ law. The company is being wound up. Therefore, the Commercial affairs department has seized about twenty-one million US dollars and will establish how these funds should be disbursed to the firm’s creditors. This constitutes property law. The directors’ intention of selling 26,000 packages and earning 180, 000 US dollars was unacceptable. They knew that the scheme would fail. An important aspect of Law of contract is ‘acting in good faith.’ The directors breached this provision. On the other hand, Phang’s wife is also being fined for falsifying payment vouchers. This constituted a breach of contract law. How the Law helps in the following Situations Allows people to Organize and Plan Law in itself can help people organize and plan their future actions. In the case of Sunshine Empire, investors are applying the provision of the law to plan their future actions. This is evidenced by the fact that they buy packages from Sunshine Empire with the hope that they will get higher returns. There was a risk though with such investment as the company could collapse in the future leading to heavy losses to investors; and true to this, the company eventually went under receivership. How Law Encourages or discourages Particular activities Law can act to encourage or discourage certain activities. The prosecution of directors is a common example where the law doe not permit swindling of investors money through fraudulent activities. The directors defrauded the public of their through false investment activities, hence had to pay for their illegal acts (Howitt, p68). The law also acts to encourage compensation in cases of losses being suffered by a given party to a contract. This is seen when the commercial affairs department of company sets aside money to disburse to the firm’s creditors. How Law Creates Rights and Duties that can be enforced The contract between Sunshine Empire and its investors is a clear indication of a situation where law can create rights and duties which can be enforced. The investors invest their funds in the hope of higher returns in the future. The company gets wound up and the Commercial Affairs Department sets aside funds to settle creditors’ claims. By settling the creditors claim, a right of compensation in case of damages or loss is being enforced. How Law Provides remedies when Rights are interfered with or duties are not discharged In this case, creditors are being given funds set aside to cover for their losses as the company goes into liquidation. This clearly shows how law can be used to provide remedy in case of interference with somebody’s rights or where duties in a contract are not fully discharged. Why it is Important to know the law in the circumstances described in the Media report Members of the public at large should know the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The prosecution of James Phang Wah and Jackie Hoo Choon Cheat Essay”, n.d.)
Retrieved from https://studentshare.org/law/1396339-the-prosecution-of-james-phang-wah-and-jackie-hoo-choon-cheat-directors-of-an-insolvent-company-sunshine-empire
(The Prosecution of James Phang Wah and Jackie Hoo Choon Cheat Essay)
https://studentshare.org/law/1396339-the-prosecution-of-james-phang-wah-and-jackie-hoo-choon-cheat-directors-of-an-insolvent-company-sunshine-empire.
“The Prosecution of James Phang Wah and Jackie Hoo Choon Cheat Essay”, n.d. https://studentshare.org/law/1396339-the-prosecution-of-james-phang-wah-and-jackie-hoo-choon-cheat-directors-of-an-insolvent-company-sunshine-empire.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The prosecution of James Phang Wah and Jackie Hoo Choon Cheat directors of an insolvent company, Sunshine Empire

Business Organizations: Jackie`s Case

...?Business Organizations: Jackie’s Case Before Jackie goes into business, she must already consider the form of business that she must form to preventcomplications later on as well as establish continuity. Thus, she must take into consideration the various forms of business organizations and pick one that will allow her to operate her business successfully. There are three primary forms of business organizations in the United States, namely: the sole proprietorships, partnerships and corporations. A sole proprietorship is owned by a single natural person, a partnership is owned by more than one person and a corporation is a juridical entity, which has a personality distinct from its shareholders. In...
3 Pages(750 words)Essay

Uk Company Law Directors Duties

...? UK-COMPANY LAW – DIRECTOR’S DUTIES- AN ANALYSIS Customarily, director’s duties in UK have been divided under the head self-regulatory and non-regulatory mechanisms. Under regulatory approach, directors are required to comply with their obligations and duties, which had been by chance, adhering to the statutory duties, fiduciary duties, common law duties, which had been inflicted on directors under various laws ,which are mentioned below ;1 “Companies Act 2006” “Company Director’s Disqualification Act 1986” “The Financial Services and Insolvency Act 1986” “The Financial Services and Markets Act 2000” “The Insolvency Act 1986” There is a legal duty on the director which requires him to act in the best interest of the stakeholders... ....
10 Pages(2500 words)Essay

Why Do Students Cheat

...?Cheating has often been a topic of research since a long time and has been a well researched topic since it is a well-known fact that cheating is a common crime reported at academic level. Thus, research in recent years has turned towards exploring the causes of cheating rather than the phenomenon itself. The major factors that have been highlighted by researchers as amongst the major causes of cheating are limited time available to students, the prevailing culture that encourages cheating, weak regulations and punishments that discourage students from cheating in future as well as getting the opportunities to cheat. These causes have been explored in greater depth and their strength in leading students towards cheating has been... ...
6 Pages(1500 words)Essay

Sunshine center

...management. A restructuring of the duties and mandate of the Sunshine Center’s internal organization and its committee will see the center accrue more benefits for the parties involved. Three functional areas that comprise of governance, administration and programs characterize the internal organization of any non-profit entity. These can further be sub-divided according to needs and nature of an organization’s operations and activities. The Sunshine center’s committee plays the role of a board of directors, and it is accountable for the formulation and implementation of policies for the organization. Sarah’s role as the chair of the committee is crucial to the success of the...
3 Pages(750 words)Case Study

UK Company Law Shareholders and Directors

...Order 156623. SHAREHOLDERS AND DIRECTORS INTRODUCTION The directors of a company are entitled to exercise all powers and to do all such duties and things as the company is authorized to exercise or do, except those that are required by the companies Act or done by the company in a General meeting. In enjoying their powers and duties the Directors are subject to their provision of the Act and any regulations made by the company in General meeting. The board of directors of a company are entitles to exercise all such powers and do all such acts and things as the...
8 Pages(2000 words)Essay

The Role of Company Directors

...or subjective due to personal interest. Although most jurisdictions have proscribed such transactions, it’s often an ambiguous regulation especially in small firms where the director’s role may be analogous to that of line employees. The remedy for breach of these rules or engagement in unfair transactions is usually damages if the courts deem the deal to be unfair (Black, 2001). Duty of Care In the application of the fiduciary duty of care, the company’s directors are expected to exercise in accordance with Section 214(4) of the Insolvency Act 1986, ‘ordinarily careful and prudent men would use in similar circumstances’ (Huebner and McCullough, 2008, Pg.6). In...
12 Pages(3000 words)Essay

Sunshine University

...Personal ment Report of preparation on development new computer based instruction (CBI) for St. Jones University Introduction From the 1980s, computer based instruction was and is still considered the technological fact to change education and training. According to Kemske in “the computer based training report” (Filipczak 1997) that computer-based training jumped to 15% of all training performed by respondents in his research, up from 10% the previous two years (1995 and 1996). The corporation’s intranet, as reported by 39% of the respondents, was going to be a means of delivering training. Computer based instructions are when a computer delivers some instructional material for example, it can give instructions to the learner... ment Report ...
1 Pages(250 words)Personal Statement

Jackie O concert review

...Jackie O concert Review s of performing artists and or groups. In the musical concert, several artists play different roles in singing and performances. They include a tap dancer who was not singing, Brown Bruce. The others are singers including Owens Eric on the bass, Jonita Lattimore on the soprano, and Nicole Heaston on the soprano too, John McVeigh on the tenor, Daniel Belcher on the baritone, Joyce Didonato and Stephanie Novacek on the mezzo-soprano. Each of these artists embodied different roles in the concert. Brown Bruce for example played Paparazzo, Owens Eric played Aristotle Onassis, Jonita played Liz Taylor, Nicole Heaston played Jackie O, John McVeigh played John F. Kennedy, belcher played...
3 Pages(750 words)Essay

Directors responsibility

...Part The main issue in this case is that on 18 May Pfizer made a final proposal to AstraZeneca to combine the two companies as part of a takeover bid but the board of AstraZeneca rejected the proposal. This case represents a scenario that is strongly tied to the issue of corporate governance. Basically, the issue of corporate governance is mainly applied to companies that are publicly owned where there are different stakeholders with interests in terms of ownership, control and management. Under such circumstances, the Board of Directors has the ultimate authority to make decisions but it ought to act in accordance with the legal framework that guides its operations. Another notable aspect is that the board acts as the epicentre... of the...
4 Pages(1000 words)Coursework

Sexual Predator Prosecution

...Sexual Predator Prosecution Affiliation: a. Explain your home s laws that prohibit conduct that would be considered predatory. The New York state has a sex registrar under the sex offender registration Act which not only demands registration of all sexual offenders in that state but it specifies several restrictions which would ensure that their predatory behavior would be curtailed. The sexual offenders are for example demanded to register their current address and any change of address hence being aware of their location at all times. They are provided with special telephone numbers to easily identify them as well as restricted access to several internet sites as well. Their internet access is monitored to ensure they...
3 Pages(750 words)Research Paper
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.

Let us find you another Essay on topic The prosecution of James Phang Wah and Jackie Hoo Choon Cheat directors of an insolvent company, Sunshine Empire for FREE!

Contact Us