Company Law Llb Coursework

Facts : Ulrich , Emily and Nadine are directors of EnCom Ltd . Before its in spate , they previously established as a partnership between Ulrich and Emily who are joint managing partners . Nadine , on the other hand served as an employee of the partnershipLater on , their caller-out was incorporated with all the three serving as directors . Ulrich and Emily were given 49 shareholdings each while Nadine received 2 shareholding . Being the attach to needed funds before it could start to operate , Nadine entered into a loan agreement with the Bank of Rutland to fund the society p She sign(a) the loan agreement form For and on behalf of EnCom ultimately , there was disagreement between the directors and she was dismissed from her position . Nadine was later sued by the Bank of Rutland for defaulting in the payment of the loan she entered into For and on behalf of EnComNadine blames some(prenominal) Ulrich and Emily for the financial distress the company had suffered . She claimed that both Ulrich and Emily appointed their family members to assist in the conductning of the business despite their wishing of knowledge and expertise . There was also evidence that both Ulrich and Emily spent substantial amount of company funds on flowers , chocolates and other gifts for the staffIssues : What are the remedies available to Nadine as a shareowner of EnCom Ltd and whether Nadine is liable to the Ban of Rutland for the loan agreement he signed for and in behalf of the company The scorecard of DirectorsThe Board of Directors of a company are the official representative of the company and are vested with the business office to exercise corporate powers , conduct all business and govern and hold all properties of the corporation .

Such issues include the hiring / emission of executives dividend policies , options policies and executive compensationThe supreme authority insofar as the caution of the business regular and ordinary affairs of the corporation is vested with the Board of Directors . This is the reality in e actually company . In accompaniment the larger the company , the less its shareholders have in the concern of the company . Such as in this case where dickens of the directors own 98 of the shares of EnCom LtdThe shareholders of a corporation elect tribe who have been nominated to direct or manage the corporation as a board . In the past more or less all states required that at least three directors run a corporation . The laws have changed . Today all companies must at least have one director and at least two in a public company . This is enshrined in Section 282 of the Companies Act 1985 . Virtually anyone can be a director as there are very few statutory restrictionsPresently , the duties of a director are narrow down forth in the common law rules and also in statutes such as the Companies Act of 1985 as amended by Companies Act of 1989 . Under these rules , the duties of a direct include : the vocation to act in good faith to the best sideline of the...If you want to get a full essay, order it on our website: Orderessay

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