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Assignment on The Corporate Act

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Added on  2021-06-18

Assignment on The Corporate Act

   Added on 2021-06-18

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The Corporate Act 1THE CORPORATE ACTStudent by (Name)Instructor’s (Name)CollegeCourseDate
Assignment on The Corporate Act_1
The Corporate Act 2THE CORPORATE ACTBased on the scenario concerning Paul, his wife Mavis and the children Peter, Clive,and Don several instances are clear. One is that Paul issued the special category of shares tothe second wife Cleo, after the death of Mavis. Paul, being the governing director of thecompany, did right in giving Cleo, a say in the company, based on the Corporate's Act insection 181. The bill states several roles to directors that make Paul's action legal. Thedirector should act with reasonable care, where actions taken should be based on the situationfacing the company.1 The role shows that some actions taken by directors are right in acompany, but inappropriate in another, as conditions matter. Also, the director should act ingood faith and to the interest of the company. This means that decisions made by the leadershould benefit the organization and not self. The Act also claims that the actions taken by thedirector should have a clear goal or purpose.2 The direction selected should also not preventthe stallholders from exercising the rights as well as executing their roles in the company. Paul must have considered the directives of the corporate act before offering Cleo theshares in the company. on the aspect of acting in the best of the company, the action takenwas right as it was after the death of his wife, which created a gap in the company and as aresult, the director found it useful replacing. The other reason, as to why Paul's action was1Stephen Chen and Bouvain Petra, "Is corporate responsibility converging? A comparison of corporate responsibility reporting in the USA, UK, Australia, and Germany,"Journal of Business Ethics87.1 (2009): 299-317.2John Hynes Farrar,Corporate Governance in Australia and New Zealand. Oxford UniversityPress, USA, 2001.
Assignment on The Corporate Act_2

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