Company Law - Case Study

(Baxt Lacy , 2005 ,. 96In Australia , the insolvent trading provision has attracted wide attention due to flooding of cases in which non-executive directors were held accountable despite of the full point that never actively engaged in the management of the batch . In Morley v Statewide Tobacco Services Ltd (1992 , the administration held that a non-executive director (managing director s mother ) ought to pay unmatched hundred sixty-five , 500 against the corporate debt owed by her password , 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 visit receiver was appointed on the assumption that the company d bankruptcy petition .

The liquidator reported a seeming 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 expiration of 800 ,000 due to improper purchases on that point is loss of cxxx ,000 due to diversion of funds to Earl s company knifelike Advisors LtdMisappropriation of funds of 1 million by Earl to finance his excessive lifespan styleThe problem likewise states that Elisabeth Deal , Eleanor Arnold and Enid Patton were the directors of the company during the occlusion 2003-2004 There is a contradiction that how these persons can be playacting as directors of the company in 2004 while the Go-Carts was e! xplained as a newly 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 office staff 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

If you want to get a full essay, visit our page: cheap essay