Business Law of Aussie Boats Ltd Samples †MyAssignmenthelp.com

Question: Discuss about the Business Law of Aussie Boats Ltd. Answer: Issue As per the case facts the issue is whether Banjo can take any legal actions against the directors of Aussie Boats Ltd (AB) for breached their equitable and/or statutory duties towards the company? Rules The corporation act has legislated in the Section 180 where the directors are to the acts of duty with care and diligence. The section 181 has legislates that the directors are they must act with good faith towards the other directors and employees of the company. They should use their positions of the directors with every civil obligation for running the company and holding the position of directors. It is also included in the section 184 that they must exercise their duties with good faith and should not misuse their position or disclose any information of the company which causes any bad effect or criminal offences toward the company. If the directors breached the sections of 180,181,182,183 and 184 of the corporation act then the members of the board can take any legal actions against them (Hiller 2013). Application As per the fact of the case when AB has failed to work on their business due to the lack of funds they make some initial discussion with consultancy firm La La Loopsy Pty Ltd but it failed to help in funding them. Therefore Aussie Boats Ltd (AB) has decided to buy up stock from Millionaires on Water Ltd (MWB) where that company has owned 35%of shares with the plan takeover bid imminent. However $500,000 of shares of La La Loopsy Pty Ltd in return for the provision of a report on opportunities for AB to supply boats internationally and $1 million of shares to the public to be issued for the purpose of raising additional capital for expansion purposes (Loewenstein 2015.). Now MWB has also took the shares which help in reduction of 18% of sticks in exhibit limited but Banjo who is one of the non executive director has found that the director of the company Clancy and Jack has are acting really out of concern for their positions as MWB is known to terminate the positions of executive director after completing take over (Lunn 2014). Therefore according to the sections of 180,181,182,183 and 184 of the corporation act the directors are bound to acts of duty with care and diligence, good faith, should use their positions of the directors with every civil obligation for running the company, must exercise their duties with good faith and should not misuse their position or disclose any information of the company which causes any bad effect or criminal offences toward the company. Therefore reckless or dishonesty activities should not exercise with intentionally (Coffee Jr., Sale and Henderson 2015). Conclusion However, according to the above discussion and the case facts it can be concluded that if Banjo want to take legal action against the directors for breach the equitable and statutory duties for being the director of the company then court can order for the criminal offences towards the company (Lunn 2014). If it has found that the directors are liable for the breach the duties towards the company then they can be finned with penalties under the section 1317E of the Corporation Act. References Coffee Jr, J.C., Sale, H. and Henderson, M.T., 2015. Securities regulation: Cases and materials. Hiller, J.S., 2013. The benefit corporation and corporate social responsibility. Journal of Business Ethics, 118(2), pp.287-301. Loewenstein, M.J., 2015. Equity and Corporate Law. SMUL Rev., 68, p.783. Lunn, B., 2014. Strengthened director duties of care for cybersecurity oversight: Evolving expectations of existing legal doctrine. Browser Download This Paper.