Corporate Law Essay

3097 WordsAug 14, 201313 Pages
Table of Content 1. Part A 2.1 Veil of incorporations 2.2 Company Insolvency Trading 2. Part B 3.3 Company’s insolvent 3.4 Director’s breach duty 3.5 Duty of Care 3.6 Defenses and Consequences 3.7 Consequences and Penalties of breaching the duty 3. References Part A 1.1 Veil of incorporation According to the case, OHS Solutions Pty. Ltd. is a partnership company formed by three friends. They are Des who expert in occupational health and safety, Emma who has accounting degree and Satish who has an IT degree. In addition, Ying join as a director (non executive) and also as a director of Support Pty. Ltd. as a guarantor for a $50,000 loan from the Business Bank Ltd. to OHS…show more content…
It is still possible, albeit it in very limited circumstances for the veil of incorporation to be pierced so that the parent company can have action brought against it for the conduct of its subsidiary. Therefore, as the debt incurred the directors of the OHS Company have a responsibility to prevent the company from the company insolvent. During the board of meeting, directors must attend the meeting in order to get a decision preventing the company insolvent. Hence, Ying as a non-executive director of OHS Solutions also must involve in board meeting. Des as a Managing director responsible to manage and supervised the workflow of the company. Des failing to managed the company and also the employee resulting to get more customers and gain more income. The finance director, Emma, is failing to manage and supervised her employee. As a finance director, Emma had a responsibility to manage the company’s money. And also, she responsible to oversee the company’s income. In this case, OHS Solutions had an over due debt. Besides, she was unable to find the record of financial information. She did not manage the work with the employee. Satish as an executive director, did not held a board meeting before engage Trouble Shooters Pty. Ltd. Satish failing to organise and manage the work with Trouble Shooters causing the dissatisfied service. Director non-executive Ying, as a guarantor of OHS Solution loan also
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