Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cet omwortelp With OX f Tacebook 1221 ASSSESSMENT2 TUES CASS di 1 / 1 100% INSTRUCTIONS Read the below case study and question. Submit your

image text in transcribed
Cet omwortelp With OX f Tacebook 1221 ASSSESSMENT2 TUES CASS di 1 / 1 100% INSTRUCTIONS Read the below case study and question. Submit your answer within 1 hour on the Workshop Assessment box on Moodle. Ken and Terry's Ice Cream Pty Ltd (Ken and Terry's) is a small proprietary company that produces ice creamKen and Terry's has 3 directors Ken, Terry and June, who are also shareholders with 26% each of shares in the company. The remaining shares in Ken and Terry's are held by 5 other individuals who are long-time friends of the 3 directors. Ken, Terry and June founded Ken and Terry's back in 1970 after meeting at a confectioner's convention in the United States. However, in recent times, the relationship between Ken, Terry and June has become acrimonious. In fact, Ken feels that Terry and June want to remove him from the company, or to at least punish him for some unknown reason. Terry and June have not been inviting Ken to Board meetings, and so Ken has very limited knowledge of current events at Ken and Terry's. Out of desperation, Ken decides to take a look at the company's books. He discovers by chance that Terry and June have recently transferred company property to the value of around $500K) into Terry's name Ken also discovers that Terry and June approved un usually high"consulting" fees to a company which, upon further investigation, turns out to be owned by Terry. When Ken asks Terry and lune for their clarification on these hidden transactions, they inform ken they will use their 52% voting power to fire Ken from his job as a director in Ken and Terry's. Terry and June claim that Ken "has never properly performed in his job as director" and that he "hasn't got a clue about the business" Question: Have Ken, Terry and/or June breached their directors duties? If they have breached their duties, briefly outline which consequences are likely to apply IT 21C Sunny acer Cet omwortelp With OX f Tacebook 1221 ASSSESSMENT2 TUES CASS di 1 / 1 100% INSTRUCTIONS Read the below case study and question. Submit your answer within 1 hour on the Workshop Assessment box on Moodle. Ken and Terry's Ice Cream Pty Ltd (Ken and Terry's) is a small proprietary company that produces ice creamKen and Terry's has 3 directors Ken, Terry and June, who are also shareholders with 26% each of shares in the company. The remaining shares in Ken and Terry's are held by 5 other individuals who are long-time friends of the 3 directors. Ken, Terry and June founded Ken and Terry's back in 1970 after meeting at a confectioner's convention in the United States. However, in recent times, the relationship between Ken, Terry and June has become acrimonious. In fact, Ken feels that Terry and June want to remove him from the company, or to at least punish him for some unknown reason. Terry and June have not been inviting Ken to Board meetings, and so Ken has very limited knowledge of current events at Ken and Terry's. Out of desperation, Ken decides to take a look at the company's books. He discovers by chance that Terry and June have recently transferred company property to the value of around $500K) into Terry's name Ken also discovers that Terry and June approved un usually high"consulting" fees to a company which, upon further investigation, turns out to be owned by Terry. When Ken asks Terry and lune for their clarification on these hidden transactions, they inform ken they will use their 52% voting power to fire Ken from his job as a director in Ken and Terry's. Terry and June claim that Ken "has never properly performed in his job as director" and that he "hasn't got a clue about the business" Question: Have Ken, Terry and/or June breached their directors duties? If they have breached their duties, briefly outline which consequences are likely to apply IT 21C Sunny acer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Carl S Warren

5th Edition

9780538489737, 538749091, 538489731, 978-0538749091

More Books

Students also viewed these Accounting questions

Question

Describe new developments in the design of pay structures. page 475

Answered: 1 week ago