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Law of Business Organization: Assignment

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Added on  2020-04-01

Law of Business Organization: Assignment

   Added on 2020-04-01

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Running Head: LAW OF BUSINESS ORGANIZATION Law of business organization
Law of Business Organization: Assignment_1
LAW OF BUSINESS ORGANIZATION 1Directing mind and willA company is not a natural person. It is an artificial person which is incorporated by its membersthe company has a separate legal entity and rights and duties like a natural person which are different from his members but simultaneously it can merely perform through its members. The key personnels of the company are known as directors who regulate the company and consideredas mind and will of the company. Their capability to tie a company originates from the contract of the agency. Through the express actual authority, implicit actual control or apparent authorityAn employee can also bind the corporation. If an employee of the company has taken an action beyond its power, but the corporation desire to be tied to the act of the employee, such company can give approval to such act of the employee.The Western Australian Supreme Court recently gave the decision related to a key personnel’s liability for the action of the company in situations where the company was prosecuted by investors that lost their assets in an investment plan (Sugarloaf Hill Nominees Pty Ltd v Rewards Projects Ltd(2011)WASC). The Supreme Court of Victoria held that the senior person is the directing mind and will of a company whose power is derivative from the company's board of directors who will performfor the company and for the interest of the company or any employee can be the companies’ mind and will if such employee performs under the authority (ABC Development Learning Centres Pty Ltd v Wallace(2006)VSC 171)..
Law of Business Organization: Assignment_2

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