Question
1.Goldminers Ltd. is a large company in the UK. It produces mobile batteries and accessories but supplies mainly in China and India. Goldminers has made
1.Goldminers Ltd. is a large company in the UK. It produces mobile batteries and accessories but supplies mainly in China and India. Goldminers has made a huge profit during 2010-2015 in the UK and hence established a subsidiary company in Bangladesh in 2015 with the entity of Howlader Ltd.
In 2015 because of the outbreak of recession in the UK labor market, Goldminers Ltd. Started production of Batteries in Bangladesh through Howlader Ltd. For this purpose, Howlader Ltd. took a loan of 500,000 USD from DLR Bank Bangladesh. The production of this company was going smoothly since this company was mainly operated by the Directors of Goldminers Ltd. However, in June 2017 Howlader Ltd. suddenly stopped its operation and started the process of winding up the company without paying back the loan to DLR Bank.
In 2018, it was revealed that Howlader Ltd. has used the loan for re-investment in the Goldsmith Company Ltd. Plus, in the loan agreement it was found that the loan was actually taken for a power project which is not within the business objective of Howlader Ltd. Further to that, the main directors have also been found to be involved with this deception.
Now discuss, whether DLR Bank can make Goldminers Ltd. liable for the unpaid loan? Whether the directors are liable? Whether there should be corporate veil lifting? Discuss Lifting the veil of incorporation, director's duty, the constitution of the company in substantiating your answer.
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