Was eric a shadow director or de facto director

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Reference no: EM132809614

Eric Krecichwost, former CEO and founder of Fincorp. Eric was convicted of dishonestly taking $2.8 million of his investors' money. Prior to his criminal conviction, the liquidator investigated whether Eric was a director at all times leading up to administration.

Eric quit the Board of Directors (BOD) of Fincorp 15 months before the company went into administration. Following his resignation, Eric:

Maintained control of marketing and IT departments
Was appointed to a senior management position, but was made redundant just prior to the administration
Had daily conversations with the Fincorp chairman who sought his opinion on significant strategic and operational issues
As sole shareholder, retained the power to hire and fire board members
Was still updated on every significant Fincorp decision
Attended a number of board meetings but did not vote on Board decisions

Problem 1: Was Eric a shadow director or de facto director in the 15 month period prior to administration?

Reference no: EM132809614

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