Advice on company law - Free Essay Example

Sample details Pages: 6 Words: 1887 Downloads: 6 Date added: 2017/06/26 Category Law Essay Type Analytical essay Tags: Advice Essay Did you like this example? Structure: Analysis, Legal rules and Application Introduction and General Analysis Peter, Alan, Sarah and Paul are the four directors and shareholders of East Ltd. The majority shareholder is John. Paul is both the companys managing director and chairman. Don’t waste time! Our writers will create an original "Advice on company law" essay for you Create order The companys articles of association are based on Table A. Paul was approached by West Ltd, which was interested in purchasing a piece of vacant land belonging to East. At a board meeting, Paul told the fellow directors that as the planning permission was unlikely to be granted whether East Limited was prepared to sell the land to West. The land was sold to West, for  £1.5 m. On completion of the sale, Paul received a bonus of  £50,000 from West, for which he informed Alan and Sarah. Last month, West asked Paul if he would like to purchase shares in West. As Wests share price had recently increased in value, Paul decided to invest  £15,000 of his money in West shares. John has discovered that (i) the land sold by East to West has been developed by West and sold for  £6m and (ii) Pauls shares in West have doubled in value. Advise John as to what action, if any, he can take on the companys behalf. The companys annual general meeting is due to be held n ext month 1. Was the behaviour of Paul prejudicial to other directors and shareholder? 2. Can Paul take the bonus which resulted out of the transaction? 3. Is the fiduciary duty of Paul as a director in conflict with his personal interest? 4. Does he need consent from the company to take the shares in West Ltd? 5. Secret profit by Paul and consequent accountability 6. Remedies available for majority shareholder Application Under the new proposals for à ¢Ã¢â€š ¬Ã…“Modernising Company Lawà ¢Ã¢â€š ¬Ã‚  white paper which contains important proposals with regard to a contract which a company itself is unable to accept due to the lack of resources for example, then a director may be able to take that contract personally for his own benefit. This allows directors to make full use of information, property etc which belong to the company for their own benefit without the consent of the shareholders and members provided that they obtain the authorisation from the Board of Directors to do so. The important difference here which must be noted is, in the case of private companies, the board of directors will have such powers as to authorise a director to exploit a corporate opportunity like that unless it has been expressly denied in the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s constitution. On the other hand, in the case of Public limited companies, the board of directors will not have such powers bestowed upon them as they need authorisation from the shareholders first unless a specific provision to authorise such transaction has been made in the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s constitution. In this scenario, Paul has notified the Board about East Limitedà ¢Ã¢â€š ¬Ã¢â€ž ¢s interest in buying the land and the Board, although based on his instructions regarding planning permission they have agreed to sell the land to West Limited. In à ¢Ã¢â€š ¬Ã…“CMS Dolphin Ltd v Simonet[1] it was held by Lawrence Collins J that a director was liable for breach of fidu ciary duty in diverting a business opportunity from his company although the director in question had left the company. However, even after leaving the company a directorà ¢Ã¢â€š ¬Ã¢â€ž ¢s fiduciary duties continue and therefore he may not divert business opportunities from the company or misuse information while he was acting as a director of his previous company. In this particular case the director took all the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s staff and its main clients with him and set up in business on his ownà ¢Ã¢â€š ¬Ã‚ . In Smith Stone and Knight Ltd (à ¢Ã¢â€š ¬Ã…“SSKà ¢Ã¢â€š ¬Ã‚ ) v Birmingham Corporationà ¢Ã¢â€š ¬Ã‚  (BCà ¢Ã¢â€š ¬Ã‚ )[2] a subsidiary owned by SSK carried out business activities from a piece of land owed by SSK. A compulsory purchase order was issued by BC. Compensation for loss of business was to be paid to the company and its owner. However, the subsidiary company did not own the land and so BC refused to pay any compensation. It was held that th e subsidiary company was an agent of SSK and therefore BC must pay compensation. Directorà ¢Ã¢â€š ¬Ã¢â€ž ¢s Fiduciary Duties A director has a duty towards a variety of people who are interested in the Company such as to the company itself, to its employees, to the shareholders and to its creditors. Under the Common law a director is expected to manage the company in accordance with the Companies Act and its constitution and to exercise reasonable skill and care. A director is also expected to act bona fide in the best interest of the company. This then follows that a director is expected to avoid conflict of interest with the company and must not make any secret profit by disclosing any interest in the contract company or whether he/she is likely to be involved and any profit or financial benefit he receives from it.[3] A director is also expected to use his powers for a proper purpose. Paul as a director of the company is in a fiduciary position and therefore must not mak e an undisclosed profit using his position as a director. He was only approached by East Limited because of his position as a director of the company. He must disclose this to the other directors, Peter, Alan, Sarah. The fact that West Limited was unable to purchase the land because Paul told the Board of Directors that the planning permission would not be granted and therefore could not obtain the benefit from developing that land, depends upon whether Paul had knowledge of East Limitedà ¢Ã¢â€š ¬Ã¢â€ž ¢s intentions to develop the land. It would have been better to obtain consent from the company in a General meeting to take that contract and keep the profits before actually taking the contract. It is a well established principle that there should not be a conflict between their fiduciary duties and their personal interest and they must not use the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s assets, opportunities or information without obtaining consent from the company based on full information . Furthermore, Paul would have to account for  £50,000 he received on completion of the sale of that land to the company. In Boston Deep Sea Fishing Co v Ansell[4] A was one of the directors of B Co and was paid a commission on the contract by the shipbuilders. A was also a shareholder of an Ice company who was supplying ice to the B Co. A received a bonus when he employed Ice Company in respect of B Coà ¢Ã¢â€š ¬Ã¢â€ž ¢s fishing smacks. It was held that A must account to B Co for the commission and the bonus he received although B Co could not have received any bonus from the Ice company as it was not a shareholder in that company. Generally if there is a conflict between a directorà ¢Ã¢â€š ¬Ã¢â€ž ¢s personal interest or his duty to another then the court will intervene to set aside the transaction without inquiring whether there was any breach of the directorà ¢Ã¢â€š ¬Ã¢â€ž ¢s duty to the company which is an over-riding principle of equity[5] Therefore, Alan and Sarah may prevent him from taking and keeping the  £50,000 he received as a bonus on completion of the sale of the land, stating that there is a conflict of interest[6] and that this must be recorded in the minutes in detail so that there is no suspicion of secret dealings. On the other hand, they could approve his bonus payment as well as his purchase of East Limitedà ¢Ã¢â€š ¬Ã¢â€ž ¢s shares when they contacted him as he is unlikely to be classed as just another investor, by East Limited in the Annual General Meeting. According to Profession Gower[7] when a director makes a contract with another business in his own personal capacity [8] he would have to account for the profit he makes out of any such contract. Paul was contacted by East due to his position as a director in West and therefore he was able to buy shares in East. It would be difficult for him to argue that he invested  £15,000 of his own money as a private investor mainly because East is not a PLC and therefore its shares are not available for the public and being a limited company its shares are only marketed privately. Therefore any profit he makes out of those shares he will have to account for it. Advice and Remedies i) It is possible to ratify unauthorised transaction by passing an ordinary resolution at a General Meeting and it cannot be just by the Board of Directors[9]. In order to avoid the injustice due to the absolutist nature of fiduciary duties Paul may seek relief from the court if the court believes that he had acted honestly and reasonably. With regards to his bonus of  £50,000 which he told two of the directors about, this establishes that he has acted honestly and reasonably however it would not be the case with regards to his purchase of shares in East. John as a majority shareholder can motion for the removal of Paul as a director of the Company. Any director can be removed from their office by an ordinary resolution of the members.[10] Theref ore, in order to remove Paul as a director of the company a resolution in general meeting with a simple majority is needed and this applies notwithstanding the contrary provisions in the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s Articles. The procedure for removal of a director is set in section 303 of the Act, which provides for an ordinary resolution, that is, by majority of votes in the general meeting a director can be removed from his or her office. However, if the directors are the major shareholders then the minority shareholders have very limited rights to object the way the majority directors are running the affairs of the company. If the director is removed from the office it terminates any service contract it may have with the company. The amount of damages the director may be able to claim usually depends up on the remuneration package under his contract with the company. Bibliography and References 1. Business Law and Practice by Scott Slorach Jason Ellis published by Blackston e press. 2. Business Law by Stephen Judge, second edition published by Macmillan law masters. 3. Company Law, by Charles worth Morse 16th Edition published by Thomson, Sweet Maxwell. 4. Gower Daviesà ¢Ã¢â€š ¬Ã¢â€ž ¢ Principles of Modern Company Law 7th Edition, by Paul L Davies published by Thomson, Sweet Maxwell 5. www. Nortonrose.com/articles 6. Department of Trade Industry web site: Modernising Company law White paper 7. Company Law by Janet Dine, Macmillan Law Masters, and third edition 8. Lifting the Corporate Veil by Neil Chandler www.exchangechambers.co.uk 9. Penningtonà ¢Ã¢â€š ¬Ã¢â€ž ¢s Company Law, 8th edition published by Buttersworths 1 Footnotes [1] 2002 BCC 600; [2001] 2 B C L C 704 Ch D Gower and Daviesà ¢Ã¢â€š ¬Ã¢â€ž ¢ Principles of Modern Company Law, 7th Edition, page 422 [2] [1939] 4 All ER 116, Gower and Daviesà ¢Ã¢â€š ¬Ã¢â€ž ¢ Principles of Modern Company Law, 7th Edition, page 182 [3] Section 317, 320 and 330 of the Companies Act 1985. [4] 1888 ch D 339 CA, Company Law, by Charles worth Morse page 275-276 [5] Vinelott J, Movitex Ltd v Bulfield (1988) page 183 Company Law by Douglas smith. [6] Section 317 Companies Act 1985 [7] page 184 Company Law by Douglas smith [8] Aberdeen Railway co v Blaikie Bros (1874) Company Law by Douglas smith page 184 [9] Hogg v Cramphorn (1967) Company Law by Douglas smith page 187 [10] Section 303 Companies Act 1985:

Women s Role For Literature - 887 Words

Women’s role in Literature The role of women in the society is always questioned and for centuries, they have struggled to find their place in a world that is predominantly male oriented. The treatment of women was extremely negative; they were expected to stay home and fulfill domestic duties. Literature of that time embodies and mirrors social issues of women in society (Lecture on the Puritans). But, slowly and gradually, situation being changed: â€Å"During the first half of the 19th century, women s roles in society evolved in the areas of occupational, moral, and social reform. Through efforts such as factory movements, social reform, and women s rights, their aims were realized and foundations for further reform were established† (Lauter 1406). Feminist poets like Emily Dickinson and Anne Bradstreet talked substantially about feminism in different lights in the past two centuries. They were very vocal and assertive about their rights and the ‘rights for w omen’ in general. 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Business Innovation in Business Banking †MyAssignmenthelp.com

Question: Discuss about the Business Innovation in Business Banking. Answer: Introduction: Business model refers to the companys plan, employing which the companies generate revenues and make profits (DaSilva Trkman, 2014). It forecasts the expenses that the companies need to incur and descries the products or services that the business strives to manufacture and market. It also shows the marketing phenomenon of the companies so that through its operation in the market place, it is able to earn profits. The business model has various integrated parts that evaluate its business plan and helps it to function effectively in the market. Disruptive innovation in business refers to innovation that creates new market and value network through which it disrupts the existing market situation of the businesses. All disruption innovation however is not disruptive. Outside entrepreneurs generally produce them. The disruptive process is slow since not all the firms accept the innovation in the first instance. However, after being deployed in the market in a conventional way, it leads to a faster and higher impact on the established markets. An integration of disruptive innovation in the business models helps to facilitate greater productivity and efficiency in the industries. Considering the business model of Commonwealth bank, an analysis of the smart connected devices and its influence has been depicted in the assignment (DaSilva Trkman, 2014) The Business model of Commonwealth Bank that documents its existing business structure and process has been discussed below: The key partners of the bank are investment partners, financial market operators, financial consultancies, investors, and associates. Joint ventures, subsidiaries and members of Global Banking Alliance for Women also serve to be the partners of the bank. The chief activities of the bank are banking operations, treasury services, corporate and institutional banking, funds management, superannuation and building portfolio. The bank also provides investment and broking services, market researches, risk assessments and are equally engaged in advising and counseling to customers. The bank is a consumer bank engaged in online services as well. It is a wholesale bank that assists customers on personal grounds. It has automated system that makes it easy for customers to be used and also have users community at service for the customers. The bank acts as an intermediary in international transactions and manages account of the customers with consent. They are well pronounced for the efficient customer services gaining high customer satisfaction. The cost structure of the bank is enormous. It has insurance policies and staff compensation strategies. There is a high development of IT facilities with the prevalence of taxes and operational costs management. The bank is also subjected to legal costs and spends a good amount on its presence and the other branches. More than 87000 employees working in the bank act to be the key resource for the bank. It has about 1100 branches in more than 70 countries. The company has brand awareness and enjoys high reputation. It has qualified and trained staffs and a rapid networking. The massive financial strength of the bank also act as a resource for it. Most of the employees in the bank accounting to more than 90% are from Asia, Africa and Middle East. The revenue stream of the bank includes commissions, returns on portfolio investment, understanding fees, premium on insurance policies, spread of exchange rates, credit cards availability, mortgage loans and corporate and consumer banking. The various channels of the bank for its proper functioning are through the website, the multiple branches, and call centers. The corporate and regional offices with specialized officers also act as the channels for the bank. Mobile banking facility, social media and blogging also act as channels for the bank to be more emphasized in the market. Government segment, individuals, credited investors and corporate customers are the segmented customers of the bank. The various financial institutes, traders and wealthy investors also serve to be the major customers for the bank. The incorporation of the disruptive innovation that is the Internet of Things (IoT) Technology has been very beneficial to the Commonwealth Banks. It has enabled it to share information and get transactions done with the use of smart technology in no time (Hartmann Halecker, 2015). The Commonwealth bank has adopted the technology of Albert, a new and smart EFTPOS tablet (Commbank.com.au, 2018). This next generation portable payment terminal has made business more efficient and has been improving customers experience in banking. All the modes of payment can be securely done and the customers receipt can be mailed or printed. The new incorporation of the CommBank small business app has also proved to be a very effective tool made for payments with the next generation EFTPOS devices. Through these smart connected products, people and businesses engaged in banking with Commonwealth Bank can send invoices and manage payments from anywhere in real time. Through this new technological advancement, the bank can accept any card payments on spot. Thus, it does not require heading to the banks for every new transactions. The smart connected device has brought multiple opportunities for the Commonwealth bank that has led to its better growth and progress. The incorporation of the smart connected device that works on the new technology as is observed in the products of EFTPOS has been very effective in recent times that has smoothen transactions and resolved the various issues one faced in banking (Wortmann Flchter, 2015). Through the new incorporation by the Commonwealth Bank, online banking has become easy and convenient for the users. This has led to the growth of the bank as a whole. Opportunities such as the automated services will engage more number of people in the bank, thus, the bank has greater scopes to flourish. With the smart device, the bank can maintain and manage assets reducing risk exposures and thus, opt for more assets to be managed effectively (Wortmann Flchter, 2015). Since the cost of incorporation of the device is cheap, the bank can utilize the machine and increase its functions. The effective device stores and computes the data of the users. Thus, it is not very complicated for bankers to maintain the files. They can expand the market to a significant extent. The bank has the opportunity to improve customer experience and increase customer satisfaction through these incorporations. They have the potential to transform the financial services of the bank positively that would exchange and collect information from objects and render a smooth communication. Along with the opportunities, that smart device incurs certain threats as well. Some of them are the increased efficiency that encourages new industries and entrepreneurs to emerge, increasing the competitiveness in the sector. A dysfunction of the smart device can collapse and damage the repute of the bank since it deals with the money of people that is very crucial. Threats relating to security and privacy are also evident for the banks since an explosion of the device and sensors can lead to serious consequences (Harriet et al., 2017). Considering the two aspects of the business model of Commonwealth bank, namely value proposition and the profit formula the Commonwealth Bank can lead to greater expansion and progress with the smart device. It can add to its value propositions significantly rendering to the customers the need of adopting new technology and using the app that the Bank has adopted. This would enable them to make transactions and payments easily. It would add more value to the banking services and accelerate the good repute that the bank has in the global market. With the incorporation of smart connected devices, the Commonwealth bank can also increase its profits by increasing the customer segment, including the younger generation and women sections in the banking service. Since the technology relieves the customers from coming into the banks and transact sitting back at homes or any other place, it can provide its services to all kinds of people coming from all sections of the society who have enough money in the accounts. Thus, an expansion in the customer segment would enrich the economy of the bank making it even more successful. This ultimately would add to the profit formula of the bank increasing its profit margin largely. The incorporation of smart connected devices proves to be very effective for every industry that engages it in their functioning. The Commonwealth bank has been integrating various smart measures to render its services at large and increase its efficiency and banking services. The smart connected devices have enabled the bank to be operative throughout the year in all the 24 hours in a day. Thus, the transactions have significantly increased. It also allows the customers as well as the bankers to be informed about their transaction and get access to their account that makes the entire process transparent (Morey, Forbath Schoop, 2015). It has enabled the customers to do banking from anywhere and at any time without any obstructions. Thus, overall the impact of the new technology has a widespread significance on the bank that has proved to be profitable for them. It has not only enriched the customer experience but has also increased dimensions for the bank to adopt greater business o pportunities and proceed further with its services. From the analysis, it can be concluded that smart connected products are very effective for any industry to accelerate its production and efficiency to a significant extent. The products, if employed properly make business transactions easy and convenient and make the entire process transparent. In aspect to the Commonwealth bank; the smart connected service that the bank has adopted and aims to adopt in the future, increases opportunities for the bank to be progressive and more successful in the future. The use of the devices have certain threats, however, advancement in technology serves to be an important aspect that needs to be employed in the preset business situation. A proper initiative can bring the most out of the high potential that the disruptive innovation and its devices have that ensures a productive development of businesses in the long term. References: Commbank.com.au. (2018).Our innovation in Business banking - CommBank. [online] Available at: https://www.commbank.com.au/business/our-innovation.html [Accessed 6 Apr. 2018]. DaSilva, C. M., Trkman, P. (2014). Business model: What it is and what it is not.Long range planning,47(6), 379-389. Harriet, E. E. U., Oluseye, O. O., Omotayo, A., Augustina, D. (2017). Queuing Theory Perspective in e-Banking and Service Performance: A Conceptual Approach.Asian Journal of Information Technology,16(6), 364-373. Morey, T., Forbath, T., Schoop, A. (2015). Customer data: Designing for transparency and trust.Harvard Business Review,93(5), 96-105. Wortmann, F., Flchter, K. (2015). Internet of things.Business Information Systems Engineering,57(3), 221-224.

Represent a Democratic Revolt of the People free essay sample

In the Election of 1824, Jackson had the most popular and electoral votes, but did not win the election. Because the vote was split four Ways, he did not have the majority Of the Electoral College and John Quince Adam became president. Jackson supporters believed that voters were told to vote for Adams or Clay through secret political maneuvers. They accused them of making a corrupt bargain. Adams and Jackson both ran for president again in the Election of 1 828, which was also known as a revolution. Jackson and his followers had a new campaign tactic, which was accusing Adams wife of being born out of wedlock. Adams accused Jacksons wife of adultery. This election attracted a lot of interest and had three times as many voters as the Election of 1824. Jackson won and became president in 1829. During his presidency, Andrew Jackson gave all men the opportunity to hold government jobs. This is why this period is called the Age of the Common Man. Before Jackson became president, rich southern planters and northern merchants dominated the government. Now, under Jacksons rule, white males of the lower and middle classes began to vote in large numbers. There were new state suffrage laws, which enabled more citizens to vote, due to deter education, changes in political parties, and an increase in newspaper circulation. Western states also adopted these laws, which were called Universal male suffrage. All white males from one end of the country to the other were allowed to vote regardless of their religion or social class, and could hold government jobs, even if they were in the middle or lower classes. Also, voters and politicians now nominated candidates, rather than the political party leaders in Congress.This and other events led to a more democratic society. Jackson also gave government jobs to regular people. This was called the spoils system. He appointed people to federal jobs depending on whether they had campaigned for the Democratic Party. Anyone currently in office who was not a democratic was replaced with a democrat. This was called the spoils system because it promoted a corrupt government. He also believed in rotation in office. He wanted to make it possible for more democrats to have government jobs, so he limited a persons time in office to one term.The spoils system showed how one man was no better than another and helped build a strong two-party system. In the two-party system, supporters of Jackson were Democrats and supporters of his rival, Henry Clay, were the Whig. The Democratic Party resembled the old Republican party of Jefferson, while the Whig represented the Federalist party of Hamilton. Jackson was similar to Jefferson because he opposed increasing federal spending and the national bank. He vetoed 12 bills, which was more than the total of all 6 presidents before him.One of the things he vetoed was the use of federal money to make the Massively Road, because it was entirely in one state. It was also the home state of Henry Clay, Jacksons rival. Jackson also aided the common woman. Peggy ONeal Eaton, the wife of Jacksons secretary of war, was gossiped about by other cabinet wives. They didnt invite her to parties because they believed she was an adulteress. Most of the cabinet resigned when Jackson tried to force their wives to accept Peggy Eaton. Because of this controversy, Jacksons vice president, John C.Calhoun, resigned and Martin Van Burden was chosen to be the new vice president. Jackson disliked Native Americans and agreed with citizens who wanted to take over lands previously owned by them. Jackson decided to make the Indians leave their homelands and settle west of the Mississippi. In 1830, he signed the Indian Removal Act. This forced thousands of Native Americans to resettle. When Georgia passed laws that required the Cherokees to move to the west, they were challenged in the courts. The court cases were Cherokee Nation v. Georgia and Worcester v.Georgia. In 1838, after Jackson left office, the U. S. Army forced the Cherokees to leave Georgia. This was called the trail of tears. Jackson favored states rights if it didnt lead to disunion. In 1828, when South Carolina called the Tariff of Abominations unconstitutional, the nullification theory was created, in which each State could declare a federal away null and void. Not only did South Carolina nullify the tariff of 1 828, but it also nullified another tariff in 1832. The collection of tariffs within South Carolina was forbidden.Jackson told the secretary of war to prepare for military action and persuaded Congress to pass a Force bill giving the president the authority to take military action. In his Proclamation to the People of South Carolina, he stated that nullification and disunion were treason. Jackson gave the opportunity for a compromise by suggesting the lowering of the tariff. South Carolina postponed nullification and Jackson arced militant advocates of states rights to retreat. He also gained southern support because he shared their alarm of a growing antislavery movement in the North.Citizens of the South trusted that Jackson would not give the benefits of democracy to blacks. Another issue that Jackson dealt with during his presidency was the recharging of the Bank of the U. S. Jackson had the suspicion that Nicholas Fiddle, the banks president, abused the banks powers and served the interests of the wealthy. Jackson felt that it was unconstitutional. In 1832, Clay decided to challenge Jackson, by persuading Congress to pass bank-recharge bill. Jackson vetoed the bill because it helped the wealthy at the expense of the common people.