Free Samples
ACC204 Corporate Accounting And Reporting
.cms-body-content table{width:100%!important;} #subhidecontent{ position: relative;
overflow-x: auto;
width: 100%;}
ACC204 Corporate Accounting And Reporting
0 Download5 Pages / 1,140 Words
Course Code: ACC204
University: Kings Own Institute
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Question:
Discuss about the A guide to Directors Duties and Responsibilities.
Answer:
Relevant law
A company director is the sole/heart of the company who runs and manages the company affairs. Section 9 of the Corporation Act 2001 defines a director as the person who performs the functions of the directors and comprise of shadow, de facto, alternate directors, etc. There are common and statutory duties which every director must comply with. (WD Duncan, 2012)
Common law duties
1.Every director must perform with utmost good faith, with bonfide intention and in the company’s interest (Whitehouse v Carlton Hotel Pty Ltd (1987). There is breach, if the company’s interest is not taken into account but the breach is considered what a reasonable prudent man thinks in the like circumstances Farrow Finance Company Ltd (in liq) v Farrow Properties Pty Ltd (in liq) (1997).
2.Every director must act with proper purpose and should not misuse their powers to gain benefit for themselves (Pine Vale Investments Ltd v East Ltd & East Ltd & Anor (1983).
Every director must act with diligence and care. This duty cannot be delegated and even of delegated it will not absolve the responsibility of the director (Statewide Tobacco Services Ltd v Morley (1990).
1.The directors must be fully informed regarding the affairs of the company before making any decisions at the board (Daniels v Anderson (1995).
2.Every director must avoid any conflicting situation and if the conflicts occur then the company’s interest should prevail (SEA Food International Pty Ltd v Lam (1998).
3.Directors own a fiduciary duty which must be complying with in every scenario
No confidential information must be disclosed by the directors.
No director must abuse the corporate opportunities.
Statutory duties
1.Section 180 (1) of the Act establishes that the duty of diligence and care should be performed by the directors and other officers like a normal prudent man do in the similar circumstances (ASIC v Healy (2011).
2.As per section 181, every director or officers must act in good faith, proper purpose and in company’s interest. This duty is breached even when the directors are acting honestly.
As per section 182 and section 183 of the Act, the position and information, respectively, of the company must not be misused which is disadvantageous to company and in the benefit of the directors (ASIC v Vizard[2005]) regardless of the fact whether benefit or disadvantage actually occurs or not.
As per section 191-195 of the Act, the director must disclose all the material personal interest which he has in the affairs of the company.
Application
As per facts, Property Developments Ltd (company) with Julian, Sol and Daniel as directors. The company intent to acquire a land. The company also desires to engage an architectural firm to design plans for their buildings and sought various firms to tender for the role.
Breach of duty by Julian
As per the facts, Julian, at the board meeting recommends to buy the land from Gerald (his uncle) @ $850,000 (current market value). He did not disclose his relationship with Gerald and the fact that his uncle intends to sell the land to pay the bank loan.
Now, Julian is in breach of his statutory duty under section 182-183 as he misused his position and information and it makes no difference whether any disadvantage to the company or any benefit to him actually incurs or not. Also, he did not acted with all due care and diligence, with good faith, proper purpose or in the company interest and thus has violated section 180 (1) & 181. Also, he did not disclose any material personal interest and is in violation of section 191-195 of the Act.
Also, Raphael is the brother of Julian and is the owner/director of an architectural practice company. Julian is in charge of the tender process. Julian by using his position and information has informed Raphael as what each architectural firm is going to charge. This has provided an advantage to Raphael to offer the lowest price. Thus, Julian has dishonestly and recklessly violated section 182 and section 183 of the Act. Also, he did not disclose his relation with Raphael to other directors and thus has violated section 181 of the Act.
Julian has also violated common law duties of good faith, transferring of confidential information, misuse of position and information.
Breach of duty by Sol and Daniel
Both the directors agree to buy the land from Gerald and authorize Julian to proceed with the transaction. They make no independent financial enquiry and how the company will raise the finances. They are not pro at understating finance and leave it to the company’s accountants to sort out. Thus, they acted without any care and diligence by not enquiring into the financial position of the transaction and also violated their duty of good faith which they have against the other personnel’s of the company and thus have breach section 180(1)- 182 of the Act.
The common law duties of good faith, transferring of confidential information, misuse of position and information are also violated.
Since Julian is in breach of 180 (1) – 183 & section 191-195 of the Act thus, civil penalties must be imposed upon him. Sol and Daniel has also violated section 180(1)- 182 of the Act. Thus, the directors can be compensated or impose with civil penalty a fine of $200,000 or can be disqualified under section 206C of the Act.
Also, Julian has provided advantage to Raphael by acting recklessly and dishonestly and thus has violated section 180 (1)-183 of the Act. So he committed a criminal offense under section 184 and can be imposed with a fine of $360,000 or 5 years Jail or both or can be disqualified (section 206 B).
All the directors can take the defense under section 180 (2) to relieve from the breach of section 180 (1), if the director/officer can prove that the decisions taken by them is in good faith, proper purpose, there is no material personal interest or genuinely consider that the decisions in the company’s best interest.
Conclusion
Thus, Julian has acted without any care, diligence and good faith. He also acted recklessly and dishonestly. Thus, he is liable both under civil and criminal law. Also, Sol and Daniel ahs also violated section 180 (1)- 182 and thus civil liabilities can be imposed upon them.
References
Books/Articles/Journals?
Etraining (2008) A guide to directors’ duties and responsibilities for non-listed public companies and proprietary companies in Australia.
WD Duncan (2012) Joint Ventures Law in Australia: 3rd Edition. Federation Press.
Case laws
ASIC v Healy (2011) 83 ACSR 484.
ASIC v Vizard [2005] FCA 1037
Daniels v Anderson (1995) 37 NSWLR 438.
Farrow Finance Company Ltd (in liq) v Farrow Properties Pty Ltd (in liq) (1997) 26 ACSR 544.
Pine Vale Investments Ltd v East Ltd & East Ltd & Anor (1983) 8 ACLR 199.
SEA Food International Pty Ltd v Lam (1998) 16 ACLC 552.
Statewide Tobacco Services Ltd v Morley (1990) 2 ACSR 405
Whitehouse v Carlton Hotel Pty Ltd (1987) 162 CLR 285.
Free Membership to World’s Largest Sample Bank
To View this & another 50000+ free samples. Please put
your valid email id.
Yes, alert me for offers and important updates
Submit
Download Sample Now
Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.
UploadUnique Document
DocumentUnder Evaluation
Get Moneyinto Your Wallet
Total 5 pages
PAY 3 USD TO DOWNLOAD
*The content must not be available online or in our existing Database to qualify as
unique.
Cite This Work
To export a reference to this article please select a referencing stye below:
APA
MLA
Harvard
OSCOLA
Vancouver
My Assignment Help. (2018). Corporate Accounting And Reporting. Retrieved from https://myassignmenthelp.com/free-samples/directors-duties-and-responsibilities.
“Corporate Accounting And Reporting.” My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/directors-duties-and-responsibilities.
My Assignment Help (2018) Corporate Accounting And Reporting [Online]. Available from: https://myassignmenthelp.com/free-samples/directors-duties-and-responsibilities[Accessed 19 December 2021].
My Assignment Help. ‘Corporate Accounting And Reporting’ (My Assignment Help, 2018)
My Assignment Help. Corporate Accounting And Reporting [Internet]. My Assignment Help. 2018 [cited 19 December 2021]. Available from: https://myassignmenthelp.com/free-samples/directors-duties-and-responsibilities.
×
.close{position: absolute;right: 5px;z-index: 999;opacity: 1;color: #ff8b00;}
×
Thank you for your interest
The respective sample has been mail to your register email id
×
CONGRATS!
$20 Credited
successfully in your wallet.
* $5 to be used on order value more than $50. Valid for
only 1
month.
Account created successfully!
We have sent login details on your registered email.
User:
Password:
MyAssignmenthelp.com possesses 3000+ highly skilled cheap essay writers, who respond to students’ popular search ‘can someone do my essay at a cheap rate online’. They evaluate student’s requirements and fulfill them perfectly. Hence, students don’t need to waste their time in searching, ‘who will write my essay at cheap rate’. They can straight convey their requirements and have the paper written by highly qualified experts.
Latest Business Law Samples
div#loaddata .card img {max-width: 100%;
}
BU1112 Business Law
Download :
0 | Pages :
6
Course Code: BU1112
University: James Cook University
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answer:
Part A
Issue:
Whether Stella is considered as an employee of PRX?
Rule:
The main difference between employee and independent contractor is stated below:
Employee entered into contract of service, but contractor entered into contract for services.
Employer exercise control over the employee but no control was exercised by employer on contractor. It is considered as traditional test which was developed in Zuijs v Wirth Bros(Zuijs…
Read
More
Tags:
Australia South Lake Management health finance management University of New South Wales
BSBWHS605 Develop Implement And Maintain WHS Management Systems
Download :
0 | Pages :
15
Course Code: BSBWHS605
University: Swinburne University Of Technology
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answers:
Work Health and Safety Management System (WHSMS) is a collection of plans, tools, activities and processes. List 3 of these plans, tools, activities or processes and explain what they are,
The means, nitty gritty beneath, can be utilized whether the arranging procedure is straightforward or complex. They are:
Evaluating the current word related to wellbeing and security status including the ‘administration framework’ Lussier, R. N…
Read
More
Tags:
Australia Brisbane Management Work Health and Safety Management System (WHSMS University of Brisbane MBA
BUSN331 Business Law
Download :
0 | Pages :
3
Course Code: BUSN331
University: Centennial College
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Canada
Answers:
Introduction
In Alberta, the Residential Tenancies Act applies to all the people in this jurisdiction, who rent their space out (Alberta Queen’s Printer, 2016). Through this act, the rights and responsibilities of the landlords and tenants are brought forward (Landlord and Tenant, 2015).
Question 1
Before a tenant can move in the rented accommodation, the tenant and the landlord have to reach an agreement, with regards to the…
Read
More
Tags:
Australia Edmonton Humanities Management University of New South Wales Masters in Business Administration
LA1040 Contract Law
Download :
0 | Pages :
11
Course Code: LA1040
University: University Of London
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: United Kingdom
Answer:
Introduction
A contract is an agreement between the parties which is enforceable legally in the courts. There are several provisions of law which governs how the terms related to the contract would operate. A contract consists of a set of provisions which are known as contractual terms. The weightage of such terms are not equal as one term may have a more significant consequence as compared to the other in relation to their brea…
Read
More
Tags:
United Kingdom London Economics Management University of London
TLAW202 Corporations Law
Download :
0 | Pages :
9
Course Code: TLAW202
University: Top Education Institute
MyAssignmentHelp.com is not sponsored or endorsed by this college or university
Country: Australia
Answers:
1.
If any person wants to carry out his business in the form of a company, then, it is necessary that the registration or incorporation requirements of such country must be met. In Australia, the Corporation Act 2001 and the guidelines laid down by ASIC provides with the steps that must be accomplish in order to establish a corporate entity. (Malbon & Bishop, 2006).
A company is of great significance as it is treated as a …
Read
More
Next