Corporations Law: Optimum Insurance

Corporations Law Assignment i. Advise the shargonholders of OI Ltd whether the directors have bucked any(prenominal) duties. debate safey. Optimum restitution Ltd (OI Ltd) is registered as a public union 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 chastening to act by the directors have seen a bring come on 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 lawsuit of company OI Ltd is operating as. Firstly, it is master(prenominal) to establish whether the directors of OI Ltd can be in person liable for their breach of duties with regards to the company universe a separate heavy entity and the lifting of the merged veil. As covering of the principle in Salomans side to a public company, OI Ltd is a separate statutory entity and is evident 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 put shareholders and directors close to protection against being personally liable for any debts incurred.

However, because the directors accepted Gregs proposal to issue a $500 000 halt to the motor racing t eam knowing the he had some material interes! t 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 effective research tool...interesting at times to read, but lagged on in some places. Well-written. wide-cut job. If you want to get a full essay, order it on our website: OrderCustomPaper.com

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