The Case of Nurture Nature Pty Ltd. Company

1269 Words Feb 3rd, 2018 5 Pages
With the deepening of economic globalization, company has been one of the principal participants in the market economy. Therefore, director as the fiduciary of the company, he whether fulfill his duty has been focus of attention. In the case of Nurture Nature Pty Ltd Company, Yolande, Shani and Wei are the directors of the Company, but in fact the company's operation mainly control by Yolande and Shani. Under Yolande and Shani’s proposals, company spent twice the price to purchase the equipments in order to expand into Papua New Guinea (PNG) markets. However, due to local government has strict policy, their plan was abortion; on the other hand, Wei as a non-executive director that he signed a loan contract on behalf of company with bank privately, which without permission of the other directors and shareholders. The above two cases eventually made the company into a financial crisis.
In this assignment, it will through some rules of Common Law and Corporation Act to discuss whether Yolande, Shani and Wei breach their duty (part A) and whether the contract was bound by Nurture Nature Pty Ltd Company (part B).
Proprietary limited company is a corporate that has a separate legal existence, perpetual succession and limited liabilities and it also governs by the Australian Securities and Investments Commission (ASIC). Proprietary limited company is not on the ASX list, which means it could not raise funds from the public. Before registration, company must have a constitution or…
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