Law Case Study

Issues: Whether the gradeors split up the duties of director? Whether the fixed charge is worth(predicate)? Whether the go charge is effectual? At the radical of the case, Tim, Jim and surface-to-air missile atomic number 18 owned and run the provender oil business for a long time, and then they unconquerable to promote a lodge c all(a)(prenominal)ed TJS, and they hold 20% of shares and become the directors of the Company. plainly, they are the promoters at the beginning of the time. As a promoter, they fag endnot succeed the board meeting of the company. But they motivating to do a typography about the turn a profit. On the some other hand, the shareholders had voted them to be the directors of the company, on that time Tim, Jim and Sam can attend the board meeting. But they still did not notice the profit that they had earned from the transaction on the selling company. harmonize to the duties of director, they pick out to disclose it to the shareholders. Therefore, they had ravished the duties of director, the fiduciary trading. According to the Platt v Platt (1999), where in that esteem are three brothers owns a company which had a BMW dealership. The suspect held all the ordinary shares and alone running the business.

Then the defendant persuaded the two plaintiffs to sell their entire preference shareholdings to him for $1, and representing them that this was necessary to be sold, at the insistence of BMW. The defendant had breached a fiduciary affair to the two plaintiffs by not giving them a direct and full account of his negoti ations with BMW. In this case, Tim, Jim and ! Sam did not compensate when they were the promoters. But they must disclose the profit to the shareholders when they become the directors of the company. So, breach of fiduciary duty owed by them. Furthermore, refer to Coleman v Myers (1977), where the defendants were directors of a family company. The first defendant made a take-over offer to all the other shareholders and ultimately succeeded in acquiring total contain of the company. The plaintiffs were...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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