Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Homer is an accountant and a non-executive director of Simpson Homes Pty Ltd, a home renovation company. The executive director is Bart, a qualified builder.

Homer is an accountant and a non-executive director of Simpson Homes Pty Ltd, a home renovation company. The executive director is Bart, a qualified builder. Marge is the other non-executive director. Homer has a busy accounting business and is therefore unable to attend all the directors' meetings. When Homer does attend meetings, he asks very few questions and generally agrees with whatever Bart proposes. The company was awarded a large contract to renovate several government-owned houses. Soon after the work started, it become obvious that the company would lose considerable money on the contract. The extent of the required work had been grossly under-estimated. Marge had queried the contract price before the contract was entered into but was assured by Bart that the contract would be profitable. It was also learnt that one of the main sub-contractors engaged by Simpson Homes to work on the government contract was a plumbing and electrical company owned by Bart's son, Millhouse.

Discuss whether any of the directors have breached any of their duties, including any actions that may be taken by ASIC.

Your answer must include case law (where relevant) and the provisions of the Corporations Act 2001.

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

Organizational Behavior

Authors: Robert Kreitner, Angelo Kinicki

9th Edition

007353045X, 978-0073530451

More Books

Students also viewed these Law questions

Question

x-3+1, x23 Let f(x) = -*+3, * Answered: 1 week ago

Answered: 1 week ago

Question

What would you do?

Answered: 1 week ago