Common law and statutory law

Assignment Help Operation Management

Reference no: EM132109415

Mei-Ling, Belinda, Chan and Tran all run a family owned company called Be Mine Pte Ltd. The company is a small florist business which has two stores.

The company has 9 shareholders consisting of close friends, family members and the four directors.

Recently the directors have been offered the opportunity to purchase both premises in which the stores are run, as the current owners are now selling. Tran is asked by the board to arrange financing from the local bank.

At the next meeting Tran informs the board of the loan terms and at this meeting the following takes place;

Mei-Ling spends the entire meeting playing candy crush on her mobile phone and when asked to vote just nods.

Belinda doesn’t ask any questions and just agrees to pass the resolution allowing the loan.

Chan who understands floristry well as she has a degree in design, but struggles to understand finances in general, doesn’t object, but instead agrees to the proposal although she has some hesitation due to recent downturn in orders being placed.

Although the resolution is passed Tran comes to you with hesitations of his own in regards to the director’s behaviour at this meeting.

Required:

Advise all four directors as to whether their behaviour has breached any common law or legislation in regards to their responsibilities as directors. If they have breached their duties what defences if any do they have at both common law and statutory law?

Reference no: EM132109415

Questions Cloud

Different products and type of services that can be offered : Identify the competitive advantage (s) in business for growth. What are the different Products and type of services that can be offered.

What does crystallization mean : What is an entrenched provision in the memorandum and articles of association? What does crystallization mean?

Different views about what the company should produce : Ali has different views about what the company should produce and believes the company should produce documentaries about health and well-being.

Andy was hesitant to invest so much money into their company : Fly High Pte Ltd. Andy was hesitant to invest so much money into their company.

Common law and statutory law : If they have breached their duties what defences if any do they have at both common law and statutory law?

Relocating to your area for more education and training : A colleague has a friend who is considering relocating to your area for more education and training.

Discuss the reasons for the morale problem : What critical factor could interfere with Luis’ attempt to build morale? Identify and discuss the reasons for the morale problem;

What reasons besides policy : What reasons besides “policy” can you offer the Boudas to help them understand the situation?

Concern for the long-term future of project and or company : Identify at least three conclusions that have potential concern for the long-term future of the project and or company.

User Account

All Pages