BLO 2205 : Corporate Law Assignment - Victoria AU

Added on - 30 Oct 2019

  • BLO 2205

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  • 12

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Running head: CORPORATE LAWCorporate LawName of the StudentName of the UniversityAuthor Note
1CORPORATE LAWTable of ContentsTable of Contents.............................................................................................................................1Introduction......................................................................................................................................2Answer to Question A.....................................................................................................................2Board of Ardent Leisure recognise and manage the risk arising from this incident...................2Answer to Question B......................................................................................................................4ASX principles of Good Corporate Governance.........................................................................4Answer to Question C......................................................................................................................6The directors had breached their duty of care and diligence.......................................................6Answer to Question D.....................................................................................................................7Board review and improve the effectiveness of the company’s risk management framework...7References......................................................................................................................................10
2CORPORATE LAWIntroductionCorporate Governance is a set of laws, guidelines and procedures used inside the office inorder to maintain a good corporate culture in the organization so that the company is able to meetup with the entire requirement. It is able to grow a good relationship between the company andthe stakeholders thereby maintaining a long-term sustainable relationship.The directors, the Chartered secretary and the managers are able to achieve the goodcorporate balance and culture by following certain rules within the organization. Good corporategovernance helps in the improvement of the organization growth and gives a high integrity andstandard. The factors, which contribute to the good corporate governance, are as follows:The directors- The directors plays a vital role in the improvement of the organization and theoverall growth and the directors are the decision makers and whatever decision they take dependthe overall growth and success of the organization1.The shareholders of the company- Shareholders play a vital role in the growth of theorganization, since they contribute to the capital of the organization. They are considered to bethe primary owners of the organization, since they contribution money in the organization. Inreturn, of the capital contributed by them they expect huge dividends from the company.Stakeholders of the company: The stakeholders or shareholders are the lenders of finance, thegovernment organization. The Stock exchange and the financial institution, the employees thesuppliers of raw materials and the lenders and the people at large, from whom the company isalso dependent1Jaatun, M. G., Pearson, S., Gittler, F., Leenes, R., & Niezen, M. (2016). Enhancingaccountability in the cloud.International Journal of Information Management
3CORPORATE LAWThe community: The whole community, the society help in the upliftment of the company.The system of corporate governance is set of laws by which the organization is directed. It is aset of procedures and regulations by which the company can balance the interest of all thecontributors and the people related to the company. They are the suppliers, shareholders, lenders,customers, the financial institution, and all the people.Answer to Question ABoard of Ardent Leisure recognise and manage the risk arising from this incidentThe Board of Ardent Leisure who was the owner of Dream world went into crisis afterthe disaster in 2016. There was a tragic incident and the people were killed. The incidentoccurred on the thunder river rapid ride. It is one of the biggest attractions for the tourist. Thatincident occurred due to the vessel that was not working according to the report said. Thecompany that owns the dream world park was responsible for the accident. They were requiredto maintain the rides and then needed to ensure that the people who were riding the ride was safeand thus the rides in the park are functioning properly. The company needed to ensure the healthand safety of the tourist who were riding the thunder ride.After investigation it was found that the ride was not maintained and kept properly fort the lastfour years. The workers were informed that the theme park Dream World did not have propermanagement and maintenance. There has been number of problem and concerns that was raisedto during that time2.2Harris, J. Hargovan, A. Adams, M.,Australian Corporate LawLexisNexis Butterworths 5thedition, 2015
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