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LAWS2301 Company Law Assignment

   

Added on  2019-11-08

5 Pages720 Words183 Views
1COMPANY LAWNameCourseDate

2Part AIssueThe issues include the potential liability of the shareholders, the procedure taken to remove managing director, how board of directors make decision at the board meeting, and how to remove a managing director supported by the company’s constriction. Relevant Law and ApplicationThere are various laws that may be applied in the above issues. In most cases the board ofdirectors may decide to attach the Operating Agreement to the Articles of Organization.1 This may make the document to be published and made public. On the other hand, the privacy reasonsmay warrant avoiding publication. The Operating Agreement may have the Company’s by-laws that may provide regulations for the ownership transfer, liabilities, voting rights, management structure, business activities, management authority, and the questions that may be vital to the success of the business. The general rule is that shareholders and the members are not individually liable for the business debts and liabilities. They can be held responsible only for the value of their investment in the business. They can only be held responsible due to piercing the veil as it was in the case Tayloe v. Sellco Two Corporation, 2014 WL 3674252, personal guaranties, tortious act, liability for consenting to distribution in breaching of law, failure to remit employee holding taxes, and failure to pay taxes. 1Rouse, Robert W., Thomas R. Weirich, and Paul Munter. "New mandate: Reporting on internal controls." Journal Of Corporate Accounting & Finance (Wiley) 15, no. 2 (January 2004): 62.

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