Question 3

Question 3 The directors of PIA Pty Lt have discovered that a lot of money is missing from the accounts department. It appears the chief accountant has been stealing money for a number of years, and has now disappeared with the money. The directors had met with the chief accountant weekly for the last two years, and had signed off the accounts each week, without questioning the accountant about the accounts he presented. It appears that none of the directors were particularly skilled in accounting, nor did they look closely at the accounts, even though many of the expenditure items appeared to be unusually large. Q3 a) Explain whether the directors may have breached any duties to the company. Refer to specific duties under legislation and common law. b) Explain whether any members of the company can take action on behalf of the company against the missing accountant. Refer to appropriate law in your answer Save Unanswered