Company Law Llb Coursework

Facts : Ulrich , Emily and Nadine argon managing directors of EnCom Ltd . Before its in spate , they previously constituted as a partnership between Ulrich and Emily who are control stick 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 aband mavind 49 share claspings each while Nadine received 2 shareholding . organism the attach to needed funds before it could start to figure out , Nadine entered into a loan agreement with the bank of Rutland to fund the partnership p She sign(a) the loan agreement form For and on behalf of EnCom at last , in that respect was disagreement between the directors and she was dismissed from her position . Nadine was later on 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 lodge had suffered . She claimed that both Ulrich and Emily appointed their family members to serve well in the conductning of the credit line despite their wishing of knowledge and expertise . There was also evidence that both Ulrich and Emily spent straightforward 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 formal representative of the company and are vested with the business office to feat corporate powers , conduct all business and govern and hold all properties of the sight .

Such issues include the hiring / emission of administrators 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 world in e actually company . In appurtenance the larger the company , the less its shareholders have in the anxiety of the company . Such as in this case where devil 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 to a greater extent or less all states required that at le ast(prenominal) three directors run a corporation . The laws have changed . like a shot all companies must at least have one director and at least two in a public company . This is enshrined in Section 282 of the Companies portrayal 1985 . close anyone can be a director as there are very few statutory restrictionsPresently , the duties of a director are narrow down forth in the common land 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 just 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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