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Company law - Essay Example

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For the purpose of ascertaining whether the holding company or its subsidiary is so interested, there shall be disregarded—any rights that the company or subsidiary has in its capacity as trustee, including in particular—(i) any right to recover its expenses or be…
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Company law
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Download file "Company law" to see previous pages... Following the legal submission above, Estate Ltd has the right to indicate its interest in a property deal or transaction acting in the capacity of trustee of Healthy Eating Ltd. And it is explained above that Healthy Eating Ltd. should disregard any rights it deems necessary, maybe in the form of a compensation or remuneration.
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The main reason why Healthy Eating Ltd. could not expect to be paid for any losses incurred in the property transaction is that Estate Ltd has acted as a personal representative or trustee of Healthy Eating Ltd2. In other ways, this case could be interpreted in the following assumptions:
(i) Common Liability: In as much as Estate Ltd is representing the interests of Healthy Eating Ltd in the sale of the property that was purchased under compulsory purchase order by the local authority, whatever liability incurred by the Holding company (Healthy Eating ltd) cannot be indemnified because the Holding company is indirectly involved in the deal, using its trustee (Estate Ltd.)
(ii) Decision Rights: As a subsidiary of Healthy Eating Ltd, Estate ltd has been given the rights to act on its capacity, making its own decision concerning any commercial transactions it may deem appropriate. As a result of this, the holding company does not have any power to seek indemnity against any action taken on its behalf by its personal representative.
Considering all the facts raised above, it is legally untenable for Healthy Eating ltd to expect any forms of compensation or remuneration from the local authority on account of the losses it may have incurred because of this property deal undertaken on its behalf by its trustee.
(b) Liability to compensate the injured volunteers: This issue concerns about the liability incurred by a subsidiary of a company to a third party. In this case study, Research Ltd, which is a subsidiary of Healthy Eating Ltd was involved in a damages suit by ...Download file "Company law" to see next pagesRead More
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