Nobody downloaded yet

Organisation law case study - Research Paper Example

Comments (0) Cite this document
Organisational Law Case Study Part A In our problem, Su and Yana, the directors of the company Free Spirit Pty Ltd, had taken improper decisions such as to purchase the sports equipment from a company named Sporting Edge Pty Ltd. This company was owned and controlled by Yana and Su…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.2% of users find it useful
Organisation law case study
Read TextPreview

Extract of sample "Organisation law case study"

Download file to see previous pages This clearly indicates the intention of Yana and Su to promote their own company’s interests rather than the interests of Free Spirit Pty Ltd. Yana Yana is an executive director of the company. To determine whether she had fulfilled the obligations as a director, prescribed by the provisions of the Corporations Act 2001 and the common law, the following issues have been taken up for discussion. The Corporations Act 2001 requires directors to exercise due care and diligence during the discharge of their duties towards the company. This has been specified under Section 180 of this Act. Such due care entails protecting the interests of creditors and the interests of the shareholders when the company is expecting to become insolvent. This was held in the Credit Lyonnais case (Keay & Zhang, 2008, p. 142). The duties of company’s directors are specified under Sections 180 to 184 of the Corporations Act 2001 (Muscillo, 2009). Section 180 of this act protects directors who take decisions in good faith and for a proper purpose or when they reasonably believe that their decision will further the best interests of the company (Tesarsch and Tiller, 2010). It is incumbent upon directors to act solely for the bona fide purposes of a company. This was the gist of the ruling in Howard Smith Ltd v Ampol Ltd (1974). A director is liable if he relies on the information provided by others and as a result fails to notice mismanagement in the conduct of company affairs. Whenever there is an attempt to embark upon a very risky venture, directors of the company are required to be sufficiently circumspect. This was the ruling in Daniels v Anderson (1995). As such, in Australian Securities and Investments Commission v Macdonald (2009), the Supreme Court of New South Wales had to determine if a breach of duty toward their company had been committed by the officers and company directors of James Hardie Industries Ltd. In particular it was to be ascertained whether the duty of care and diligence stipulated in Section 180(1) of the Corporations Act 2001 had been breached due to the provision of a defective media statement to the Australian Securities Exchange regarding the ability of the company to meet certain future liabilities (Hargovan, 2009, p. 986).The Supreme Court ruled that these directors and officers of the company had breached their duty of care. In addition, the court also held the company in breach of its statutory obligations under the continuous disclosure provisions. A director has to comply with the requirements of the business judgement rule in order to obtain protection under Section 180 (2). As Yana had acted in a manner that was detrimental to the interests of the company, she cannot resort to such defence. She had purchased sports equipment at a higher price from her own company, and this clearly indicates the absence of loyalty and due care on the part of Yana. She has decided to expand the business of the company, Free Spirit Pty Ltd, to Alaska without assessing the legal and financial aspects of the company in that area in the future. Yana has breached the duties of good faith and due diligence, as per the provisions of the Corporations Act. She cannot evade liability for violation of the provisions of fiduciary duties of directors under the Corporations Act and common law. As per the decided case law, she is liable for breach of fiduciary duties, due care and diligence. Su Su is the finance director of the company Free Spirit Pty Lt ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Organisation law case study Research Paper Example | Topics and Well Written Essays - 2500 words”, n.d.)
Organisation law case study Research Paper Example | Topics and Well Written Essays - 2500 words. Retrieved from
(Organisation Law Case Study Research Paper Example | Topics and Well Written Essays - 2500 Words)
Organisation Law Case Study Research Paper Example | Topics and Well Written Essays - 2500 Words.
“Organisation Law Case Study Research Paper Example | Topics and Well Written Essays - 2500 Words”, n.d.
  • Cited: 1 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Organisation law case study

Business Law Case Study

...of the of the Business Law Case Study Introduction Issues concerning negligence and claims for damages on account of negligence form quite a sizeable part of our legal system. Such matters fall under the purview of the Common Law and are most usually decided in the Civil Courts, however cases of criminal negligence would more correctly be directed to the Criminal Courts of the land where they occur. The term ‘negligence’ means failure to take proper care in doing something1. Circumstances of the Case In the given scenario, a client has requested a written memo of legal advice in favor of a potential recovery of damages. The client has...
3 Pages(750 words)Assignment

Organisation Communication Case Study

...?Running Header: Breakdown in Organisational Communication: GB Financial Corp. Module Part 1) The GB case is certainly a very complicated one. Things started to go wrong since Jeff Butler joined GB Financial Corporation. The organization is in a shambolic state of affair due to Jeff Butler’s treatment of others in the organization and his inability to make things better at GB Financial Corporation. The main problem in the communication process is certainly the noise in the communication process. This communication process model shows us that the noise in GB Financial Corporation exists at decoding stage of the communication process. There can be several reasons for the noise at this stage of communication. The noise can be present... in the...
4 Pages(1000 words)Essay

Irish Law Case Study

10 Pages(2500 words)Case Study

Law course (case study)

...Law Law Titus Rock Manickam Order No. 226823 14 May 2008 Law Lyon vs. Adgraphics This is a delicate case and the complication has arisen out of Edward Sherman, proprietor of Adgraphic's prevarication at a critical time, leading to his censorship by the prospective buyer, William Lyon who after initially offering to buy Adgraphics for $ 75,000 appears willing to close the deal at Sherman's counter offer price of $ 80,000. Sherman's last minute cancellation of his counteroffer at $ 80,000 results in serious misunderstanding in the mind of the prospective buyer, William Lyon. Technically, Edward Sherman does not appear to be in any trouble. His agent, V.R. Brokers' principal, Robert Renault, conveys Sherman's decision to cancel... the...
2 Pages(500 words)Case Study

Commercial Law case study

...ASSIGNMENT PART A The following questions have been answered with reference to the case law - Peter Smythe v Vincent Thomas [2007] NSWSC 844 (3 August 2007)1 Question 1: In what court was the case heard (1 mark) The case under reference was heard before the New South Wales Supreme Court, Equity Division. Question 2: Name the judge and explain his title. (2 marks) The Judge hearing the case was Rein AJ Question 3: Name the plaintiff and defendant and their counsel. (4 marks) The plaintiff in the case under reference was Peter Smythe represented by his Counsel B Kasep. The defendant in the case under reference was...
6 Pages(1500 words)Case Study

Corporate law Case Study

.... Revaluation reserves are not distributable, but may be used for scrip issues, where there is an issue of new shares to existing shareholders at no charge, pro rata to their existing shareholdings. A scrip issue is essentially when one shareholder moves their money from one account to another account belonging to the shareholders. The value of the shareholding remains the same, despite the increase in the number of shares that are actually held. Revaluations may also change their nature in the re-organisation of the company, as the movement of capital will obviously be altered due to this. This ensures that for accounting purposes the share capital is maintained after any transfer of capital has taken place. In this...
10 Pages(2500 words)Case Study

Criminal law (case study)

...Criminal Law At first let's describe the offences that took place disregarding defendant's mental It will help us to choose the acts that regulate the corresponding offences. In the first case the defendant caused grievous bodily harm that inflicted permanent brain damage of the victim. Since actus reus of battery "is the infliction of unlawful force by one person upon another1" here is a plain case of battery. According to Offences Against the Person Act 1861 there is a difference in sentencing that depends on the presence of intent. Section 20 of the Act mentioned above states that the accused "shall be liable to imprisonment for five years" and according to section 18 the lifelong...
6 Pages(1500 words)Essay

Aviation Law Case Study

.... 2. Article 8 of the ANO requires that an aircraft shall not fly unless there is in force a certificate of airworthiness duly issued or rendered valid under the law of the country in which the aircraft is registered or the State of the operator, and any conditions subject to which the certificate was issued or rendered valid are complied with. In the instant, case it doesn't appear that Dan has procured for himself a certificate of airworthiness for his helicopter. Thus, when Sam, an engineer, inspected the damage and informed Dan that the aircraft was unsafe to fly and that he, Dan was ''an idiot to fly the aircraft in such a state, it could have fallen to bits in the air'', it shows that the helicopter was not airworthy. Hence... or...
10 Pages(2500 words)Case Study

Commercial law - case study

...Commercial Law Case Study Fantastic Furniture Auctioneers do not incur any liability under Contract Law for Wendys losses incurred by the incorrectly advertised date of the auction. The threshold issue under this item is whether the advertised date of auction posted by Fantastic Furniture Auctioneers is an offer of sale. The second issue is whether there is a completed contract between Wendy and Fantastic Furniture Auctioneers. Under Australian law, the incorrectly advertised date of the auction posted by Fantastic Furniture Auctioneers is not an offer of sale. The requisites for a valid and binding contract are not present and have not been complied...
4 Pages(1000 words)Essay

Commercial law case study

...Commercial Law Case Study al Affiliation) Commercial Law Case Study Issue The issued here is whether John will succeed in establishing a breach of duty by Willow Council by alleging that he broke his arm because the Council did not fence the cliff well. Rules In most United States jurisdictions, there can be no liability in negligence unless the plaintiff establishes both that they were to be paid a duty of care by the defendant, and that the defendant fell foul of the breach of that duty. On the other hand, the defendant is in breach of duty towards the plaintiff if their behavior fell short of the standard expected under the prevailing...
7 Pages(1750 words)Case Study
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 Research Paper on topic Organisation law case study for FREE!

Contact Us