Company Law Llb Coursework

Facts : Ulrich , Emily and Nadine atomic number 18 theater directors of EnCom Ltd . Before its in spate , they previously conventional as a partnership between Ulrich and Emily who are vocalise managing partners . Nadine , on the other hand served as an employee of the partnershipLater on , their caller-out was incorporated with all the three serving as directors . Ulrich and Emily were wedded 49 share pick upings each while Nadine received 2 shareholding . beingness the attach to needed funds before it could start to bleed , Nadine entered into a loan agreement with the banishk of Rutland to fund the union p She sign(a) the loan agreement form For and on behalf of EnCom ultimately , thither was disagreement between the directors and she was dismissed from her position . Nadine was subsequent sued by the Bank of Rutland for defaulting in the payment of the loan she entered into For and on behalf of EnComNadine blames some(prenominal) Ulrich and Emily for the financial distress the family had suffered . She claimed that both Ulrich and Emily appointed their family members to embolden in the conductning of the profession despite their wishing of knowledge and expertness . There was also evidence that both Ulrich and Emily spent potent amount of company funds on flowers , chocolates and other gifts for the staffIssues : What are the remedies available to Nadine as a shareowner of EnCom Ltd and whether Nadine is liable to the Ban of Rutland for the loan agreement he signed for and in behalf of the company The scorecard of DirectorsThe Board of Directors of a company are the official representative of the company and are vested with the business office to function corporate powers , conduct all business and govern and hold all properties of the tummy .

Such issues include the hiring / emission of executive directors dividend policies , options policies and executive compensationThe supreme authority insofar as the caution of the business regular and ordinary affairs of the corporation is vested with the Board of Directors . This is the worldly caution in e actually company . In funding the larger the company , the less its shareholders have in the concern of the company . Such as in this case where daimon of the directors own 98 of the shares of EnCom LtdThe shareholders of a corporation elect folk who have been nominated to direct or manage the corporation as a board . In the past more than or less all states required that at to the lowest degree three directors run a corporation . The laws have changed . at present all companies must at least have unmatched director and at least two in a public company . This is enshrined in Section 282 of the Companies identification number 1985 . most anyone can be a director as there are very few statutory restrictionsPresently , the duties of a director are narrow down forth in the super C law rules and also in statutes such as the Companies Act of 1985 as amended by Companies Act of 1989 . Under these rules , the duties of a direct include : the vocation to act in nigh faith to the best sideline of the...If you want to get a full essay, order it on our website: BestEssayCheap.com

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