Question
can you please help with this question Goldsworthy Developments Ltd established a subsidiary, Hitech Ltd, to develop and market telecommunications products. Goldsworthy made extremely favourable
can you please help with this question
Goldsworthy Developments Ltd established a subsidiary, Hitech Ltd, to develop and market telecommunications products. Goldsworthy made extremely favourable loans to Hitech in order to fund its research program. A prospectuswas issued and Goldsworthy's interest was reduced to a40% shareholding, however it retained three of its board members on the Hitech board. There are five directors on the Hitech board. Hitech was well-reviewed in industry journals, but its sales projections were not met because of a lack of promotion and it continued to be a heavily indebtedcompany dependent on Goldsworthy's continued financial support.
If Hitech was trading whilst insolvent, could Goldsworthy face liability for Hitech's debts althoughit is a separate legal entity? Why or why not?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started