Company Law - Case Study

(Baxt Lacy , 2005 ,. 96In Australia , the insolvent trading provision has attracted wide charge due to flooding of cases in which non-executive directors were held accountable despite of the token that never actively engaged in the management of the corp . In Morley v Statewide Tobacco Services Ltd (1992 , the judicial system held that a non-executive director (managing director s mother ) ought to pay integrity hundred sixty-five , 500 against the corporate debt owed by her male child , the managing director of the society (Adams Barker 2005 ,.50In this case , Go-Carts was explained as a fresh registered come with , and Earl became its managing director during April 2006 . On December 2007 call back receiver was appointed on the assumption that the company d bankruptcy petition .

The liquidator reported a probable shortage of cash in hand of oer 3 millionThe liquidator in his report alleged the followingA issue of 1 million due to investment in kingdom in FranceA red of 800 ,000 due to improper purchases on that point is loss of cxxx ,000 due to diversion of funds to Earl s company knowing Advisors LtdMisappropriation of funds of 1 million by Earl to finance his luxuriant lifespan styleThe problem likewise states that Elisabeth Deal , Eleanor Arnold and Enid Patton were the directors of the company during the boundary 2003-2004 There is a contradiction that how these persons can be playing as directors of the company in 2004 while the Go-Carts was explained as a n! ewly registered company and Earl became its managing director during April 2006Findings and ConclusionsHowever assuming that the above were acted directors in the 2006 also the following conclusions can be arrivedThough Elisabeth Deal , Enid Patton conceived that their fibre to be of non-executive directors concerning planning and policy making and there is no shew of default or willful...If you want to get a full moon essay, order it on our website: BestEssayCheap.com

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