Lawyers ethics and Professional Responsibilities
Wendy volunteers with the charity Help for Asylum-seekers and Refugees Initiative (HARI). HARI is a company limited by guarantee and is managed by a Board of Directors (BOD). Wendy is a volunteer director. As a volunteer director, Wendy spends most of her time deep in spreadsheets, explaining financial matters to her BOD colleagues. Apart from discharging her duties as director, Wendy also provides legal advice and services, usually pro bono, to HARI. 53. HARI receives funding from the Commonwealth government and also raises funds from the public for its refugee and asylum-seeker assistance programs. Bodies such as HARI are regulated by the Charitable Organisations Commission Australia (COCA), a statutory authority established to oversee organisations that engage in charity work. 54. COCA comes under the purview of the Ministry for the Homeland. The BOD provides an annual report to COCA on how HARI utilises the funds that it receives from the Commonwealth government for its programs. 55. The Homeland Minister, Chris Potter (Chris) is a hard-liner against refugees and asylum-seekers from certain countries. As the majority of refugees and asylum-seekers whom HARI assists are from those countries, Chris attempts to influence HARI to re-direct its programs to assist migrants from other countries of his preference. 56. Chris tries to bring pressure to bear on HARI by directing COCA to demand access to all of HARI's financial records regarding its programs, including programs funded by public donations. 57. The BOD seeks Wendy's advice on whether it is obliged to provide COCA access to HARI's financial records. The BOD offers to pay Wendy for her service, but she declines the offer of payment. However, to assist her in formulating her advice, Wendy requests the BOD to commission a confidential expert report from a reputable audit firm regarding HARI's financial records. 58. The BOD had previously engaged the audit firm of Cooper, Vince & Deepak (COVIDE) to conduct and audit and provide recommendations on improving HARI's financial governance procedures and risk management strategies. Subsequently, the BOD contacts COVID to ask them to also provide the confidential financial records that Wendy requests in their report. In accordance with the BOD's instructions, COVID delivers its completed report to the BOD, sends one copy directly to Thomas & Associates Lawyers and provides another copy to HARI's Financial Controller. Having received COVID report, Wendy formulates her advice in writing and tables it at a BOD meeting.
Suppose the BOD declines to provide COCA access to HARI's financial records. Subsequently COCA learns that the BOD had commissioned the COVIDE Report and sought advice from Wendy, and demands copies of these 2 documents.
Alldentify and explain the key financial, legal and regulatory influences which impact on financial statements produced and published by Hong Kong Public Limited Companies and Partnerships and Explain how the key legal and regulatory influences are relevant to the different users of financial statements.(PLZ GIVE THE REFERENCE, IF YOU TAKE THE INFORMATION FROM INTERNET IN RESPECT OF HONG KONG) B) Considering the annual accounts of sole traders, partnerships and public limited companies (plcs), identify for each of these any compulsory presentational format or publication requirement and discuss the main aspects of the regulatory framework which must be observed when reporting these accounts. PLZ WRITE IN DETAILQuestion 4 The Board of Directors Alfa Company borrowed a sum of money from a plaintiff. The Articles of Association stated that the B.0.D's could borrow money provided they are authorized by a resolution in the general meeting of the company. The shareholders claimed that the {had were taken without any such resolution, Alfa Company was liable for the loan. As the plaintiff found that the company could borrow mds based on the resolution, they had enough grounds to believe that resolution was passed. On the basis of the above, discuss: a} The importance of resolutions in the management of the company. (2.5 Marks) b) As per the Commercial Company Law, does the situation support the plainti'? [2.5 Marl-ts} c} As per the Commercial Company Law. does the situation support shareholders of the Aa Company? {2.5 Marks) d) Are the role of Directors supported by such a situation in |Dman Company Law? (2.5 Marks} Uunivers'rty first year BUSINESS LAW - Introduction to company law Chapter 1.5 Introduction to company law Short Answer Questions [end of chapter p 432}: 1., 2. 4 and 5 Why is a director considered to be a fiduciary? Explain 1ivhat is meant by the duty to act 1ivitl'. due care, skill and diligence. 4L Briey explain what a related party transaction ls, why disclosure ls required at board level and why member approval of the transaction ls required. 5. Why does an Insolvent company or a com parry nearing Insolvency have to consider the Interests of creditors when making decisions conoemlng the allocation of company resources? (a) An abuse cure is a legal right accessible to mistreated investors. It enables the investors to get an activity against the organization which they own offers when the direct of the organization has an impact that is harsh, unreasonably biased, or unjustifiably dismisses the interests of an investor. It was acquainted accordingly with, which had held that where an organization's activities were approved by a dominant part of the investors, the courts won't by and large meddle. Organization law truly depends on the guideline of greater part rule. Board and investor choices of organizations are generally controlled by a straightforward greater part vote. While this idea of lion's share rule is essential to organization law, it contains an innate danger of misuse. This danger was exacerbated by the standard in Foss v Harbottle. As per Brockett this standard gave 'that wrongs to the organization should be changed simply by activity taken by the organization in its own name, rather than the activity of individual individuals or gatherings of individuals, and that 'courts ought not meddle with the inside administration of organizations acting inside their forces.' However, unbending adherence to the standard regularly denied minority investors response against chiefs and dominant part investors. Therefore, the courts built up various 'special cases. In any case, various pundits have contended that the 'exemptions' for the standard in Foss v Harbottle are actually not special cases by any means, but rather circumstances where the standard basically can't apply. In expansion, various commonsense and legitimate challenges concerning the activity of the special cases have implied that moderately hardly any subsidiary activities have continued.' The principle troubles fixated on the impact of confirmation of the purportedly severe lead by the regular gathering of investors. On the off chance that compelling, the implied approval could deny the organization all in all, and henceforth minority investors, any privilege of activity against the chiefs. There were likewise issues brought about by the exacting models that should be set up under the steady gaze of a court may give relief. (b) Any agreement or other exchange implying to be gone into by an organization preceding its arrangement or by any individual for the organization before its development, might be sanctioned by the com-pany after its arrangement; and immediately the organization will get limited by and qualified for the advantage.9% (10 marks) Answer the following: a. MPC = .?.What is the government spending multiplier? h. MPC = .85.What is the tax multiplier? c. If the government spending multiplier is 5, what is the tax multiplier? d. If the tax multiplier is -3, what is the government spending multiplier? e. If government purchases and taxes are increased by $150 billion simultaneously, what will the effect he on equilibrium output (income)
