Fiduciary

Part A (i) Issue: Are members liable for Carborundum’s debts when winding up? Rule & Application: Since Carborundum is limited by shares and member’s liability is amount unpaid on share held, Alan, Ben and Colin who fully paid up their shares owed no liability, while others had to pay unpaid $0.9/shares. As stated in Salomon , debt is therefore the company’s responsibility, and the ‘corporate veil’ protects shareholders in their personal capacity from any liability. Conclusion: Alan, Ben and

Adelphia Case Summary The Allegations: Prosecutors say members of the cable company's founding family and two former executives looted the firm "on a massive scale," spending company funds on personal expenses, such as a $12.8 million golf course. The firm has been accused of hiding business relationships between Adelphia and entities tied to the founders and for inflating its financial results. Who's Who: • John J. Rigas, Adelphia's founder • Timothy Rigas, former CFO • Michael Rigas,

Case Study #1 #1- Did any of the following individuals in Texas Gulf Sulphur violate civil or criminal law by breaching a Fiduciary duty or engaging in insider trading: Drake: A geologist and junior member of the exploration group who was authorized with confidential information. Although Stephens made it clear that the information about the Canadian Shield should be kept within the selected group of employees,

behavior required to operate a successful nonprofit organization. Bruce Hopkins in his work, Legal responsibilities of nonprofit boards defines nonprofit governing board members as “fiduciaries of the organization’s resources and guardians of its mission.” Hopkins categorizes these legal functions as the fiduciary responsibilities in “duty of care, the duty of loyalty, and the duty of obedience.” Under the duty of care, the level of competence expected of a board member, commonly expressed as

ENRON Introduction Enron was the country’s largest trader and marketer for electric and natural gas energy. Its core business was buying energy at a negotiated price and later, selling the energy when prices increased. As an energy broker, Enron provided a service by allowing producers to negotiate a certain price while Enron took the risk that prices would fall below what it bought energy. Buyers of energy also benefited because Enron could ensure the supply of energy. In 2000 Enron was listed

Essay Question "As stated by Lord Evershed in Re Endacott, 'no principle perhaps has greater sanction or authority behind it than a general proposition that a trust by English law, not being a charitable trust, in order to be effective must have ascertained or ascertainable beneficiaries”. However, although the certainty of object is an important principle, it appears that the question in regards to the certainty of objects is one that asks whether there is a limit on the flexibility that exists

Prior to the advent of the Sarbanes-Oxley Act of 2002, referred to herein as “SOX,” the board of directors’ pivotal role was to advise senior leaders on the organization’s strategy, business model, and succession planning (Larcker, 2011, p. 3). Additionally, the board had the responsibility for risk management identification and risk mitigation oversight, determining executive benefits, and approval of significant acquisitions (Larcker, 2011, p. 3). Furthermore, for many public organizations, audit

In general, the corporations work towards meeting the end goal of adding value to its shareholders and/or stakeholders, but the way this ‘value is added and who is given priority while adding this value’ depends on the ‘perspectives’ (session1 slides) corporations choose to fulfill the objective of the given corporation. Corporation structures involve executive management, board of directors and its internal and external stakeholders. The executive management are at the helm of running the company

weakness position. This is because, if the project fails, shareholder will lose nothing but the money they have invested due to the limited liability then the risk of filature will shift to the creditor. Hence, it seems unfair for creditor who has not fiduciary protection and whose right is limited by the contract. On the other hands,

There are different consequences of a breach of the fiduciary duty that arising from the negligent misstatement. The summaries case law below will be further emphasizing on the issue of negligent misstatement, fiduciary duty and special relationships. In the law case of Chaudhry v. Prabhakar and Another (1989), the plaintiff has asked the defendant to help her to purchase a second car that no involved in accident before. The defendants owe a fiduciary duty towards the plaintiff and not making negligent