Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Information p Flag question Grace is an entrepreneurial aeronautical engineer who has grown her business into the publicly listed company, Ideas Made Real Lid (the

image text in transcribed

image text in transcribed
Information p Flag question Grace is an entrepreneurial aeronautical engineer who has grown her business into the publicly listed company, Ideas Made Real Lid (the Company). One year ago, Will as managing director of the company, entered into a contract with Beyond Jets Pty Lid (Beyond Jets) to provide them with 30 pilot consoles for $2 million. The order has been manufactured and delivered to Beyond Jets, but no payment has been received. Grace has now discovered that it was very clear at the time the contract was entered into that Beyond Jets was in financial difficulties and was known in the engineering industry to be a bad credit risk. She has also discovered that Will knew this but wanted to help Beyond Jets trade out of trouble, as Jack, the managing director of Beyond Jets is his cousin. Beyond Jets is now in liquidation and the Company is still owed $2 million. The following questions 12, 13 and 14 relate to Ideas Made Real Lid. You are required to provide her with answers to the following questions. Question 12 Answer saved Marked out of 1 P Flag question Has Will properly fulfilled his duties as a director of the Company? If not, what duties has he breached and what are the possible consequences of his conduct? Your answer must include the relevant section(s) of the legislation. Question 13 Answer saved Marked out of 1 P Flag question Has Jack properly fulfilled his duties as a director of Beyond Jets Lid? If not, what duties has he breached and what are the possible consequences of his conduct? Your answer must include the relevant section(s) of the legislation. Question 14 Answer saved Marked out of 1 P Flag question With reasons, explain whether the 'business judgment rule will be relevant in Will and Jack's circumstances? Your answer must include the relevant section(s) of the legislation

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

Financial Accounting in an Economic Context

Authors: Jamie Pratt

8th Edition

9781118139424, 9781118139431, 470635290, 1118139429, 1118139437, 978-0470635292

Students also viewed these Law questions