-
+1 - 312-224-1615
Get in touch with us
-
support@helpwithassignment.com
Send us an e-mail
Solution Library
Case Law or Statutory Civil Liability of the Directors of Vintage Dress in Relation to Breach of Contract Act
Question
Tavid, Suzan and Dilara are the only shareholders and directors of Vintage Wedding Dress Boutique Pty Ltd (Vintage Dress) which sew and sell vintage boutique dresses. Tavid, Suzan and Dilara each have one-third equal share in Vintage Dress.
You should note the following regarding Vintage Dress:
- Tavid is a non-executive director and is a qualified accountant and the Chief Financial Officer. Tavid also sits on many board and sews the dresses.
- Suzie is the Managing Director of Vintage Dress and sells the dresses.
- Dilara is a non-executive director and never attends any meetings and never has a reasonable excuse for not attending.
Business had been very profitable for Vintage Dress for years so it purchased many new state of the art sewing machines.
Tavid recommended that Vintage dress buy their new sewing machines from Sew West Pty Ltd. Tavid states that it is the best sewing machine to provide for the large increases in sales and sewing. Tavid does not tell Suzan and Dilara that Tavid and her daughter control Sew West Pty Ltd. Suzan knows that Tavid has some form of interest in Sew West but does not tell Dilara and does not ask for any details from Tavid.
Last month, Vintage Dress was approached by a second hand fabric dealer named Second Hand Fabric Pty Ltd which suggested that the two companies should enter into a joint venture where Second Hand Fabric would provide fabrics and Vintage Dress would sew the fabrics and they would sell the garments in the second hand fabric store. After lengthy discussions, all three directors decided that due to the expansion of vintage dress, Vintage dress did not have the facilities and resources to be able to sew the dresses for Vintage Dress and those for the Second Hand Fabric Store. Shortly afterwards, Dilara acting on her own behalf, and Second Hand Fabrics formed a new company which successfully created garments to sell in the second hand fabric store and made very large profits.
By this stage, the company started making large losses. At a board meeting in August 2015, the board considered the company’s in-house financial statements relating to the loss making investments. The financial statements have been negligently prepared and show a profit instead of a loss.
During the board meeting, Tavid didn’t draw the errors to the attention of the board, while Dilara failed to ask any questions about the financial statements, and was absent on this occasion. Due to time constraints, Suzie failed to read the financial statements, believing that Tavid would discuss the statements with her if there were any important matters requiring her attention.
The board directors do not identify the mistake and authorise further investment in the loss-making business ventures. By December 2015, Vintage Dress is insolvent.
Discuss any case law or statutory civil liability of the directors of Vintage Dress in relation to these events. What are the consequences, if any, of a breach of the Corporations Act?
Summary
This question belongs to business law and discusses about case law or statutory civil liability of the directors of Vintage Dress in relation to events in the given case study.
Total word count: 1060
Download Full Solution
WHAT OUR STUDENTS SAY
Before approaching TheReliableTutor.com, zoology was one of the most difficult things in my life. But after taking sessions from TheReliableTutor.com, zoology has become more fun and more interesting to learn. Thank you guys..!!!
Christie Student
I am pursuing my masters in finance management from the Singapore Management University. Even though I have a clear idea of most of the concepts of finance from my undergraduate days, I was still looking for some guidance and help with my finance assignment. I had benefited greatly during my undergraduate days from the online finance tutor at TheReliableTutor so I decided to contact them again and since then have not looked back.
Oliver Tan Student
The services of HwA are 100% reliable and they always deliver the electric field assignment within the deadline given by me. The research work and reference is always very precise and original. I have never had any complaints with regards to the quality and originality of the work.
Richard Cooper Student
1. I never faced any problem with marketing management or finance. But with operations management, I always suffered. I was unable to under the concepts of the decision tree analysis and the concept of location strategies. When I came across TheReliableTutor.com, I was relieved as they helped me overcome the horrors of operations management and transformed my fear into a genuine interest.
Simon Betteridge Student
I always fancied to be a pediatric nurse and TheReliableTutor indeed helped me out with my aspiration. In my first year of bachelor degree I had to solve a case study concerning nutritional advice of autistic children, when I came across HwA and the experts helped me out immensely.
Sini-Susan Anette Student
Comments
this is a very good website
I have 50 questions for the same test your page is showing only 28
hi can you please help or guide me to answer my assignments. thanks
hi can anyone help or guide me to my assignments. thanks
This solution is perfect ...thanks
Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes
Perfect bank of solution.
great !
thanks for the quick response. the solution looks good. :)
thnx for the answer. it was perfect. just the way i wanted it.
works fine.