Question
Explain Corporate Governance with respect to role of nominee directors in the following case - Searches related to strict licensing conditions apply for the operation
Explain Corporate Governance with respect to role of nominee directors in the following case -
Searches related to strict licensing conditions apply for the operation of tourism enterprises in Arnhem land in the northern territory. in 2012, Antipodean tours ltd wanted to extend operations in this area. to enhance its chances of gaining the necessary licenses, it incorporated a subsidiary called Arnhem land antipodean tours Pvt ltd with a 49% shareholding vested in people of indigenous decent from Arnhem land. it appointed three of the five directors to the board as its nominees.
in November 2019, the restrictions on tourism are lifted and the licensing requirements for operations in Arnhem land falls away. antipodean tours ltd no longer needs to work through a subsidiary to operate in the area.they no longer need the contacts of the two indigenous directors appointed to the board of Arnhem land antipodean tours Pvt. ltd, because they have built their own network
it also withdraws all systems and marketing support to Arnhem land antipodean tours Pvt. ltd. when the two indigenous directors want to institute action for breach of contract, the nominee directors refuse to take any legal action against antipodean tours ltd. it seems that the liquidation of Arnhem land antipodean tours Pvt. ltd is imminent. consider whether the nominee directors breached any of their general or statutory law duties
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