The OHS solution being a company which operates on the basis of the corporation act is managed by three to four directors of which three of them being Emma who is the accountant director, Des who is an occupational health and safety Director and Satish who has specialized In information technology and is also a director who runs the business IT sector. The company went further to employ a friend of Des Ying who works as a non-executive director having varied roles in the OHS company . Ying is also is the director of the support Pty Ltd. The Pty limited acts as a guarantor for the OHS company .This company had granted them with $50 at its initiation .
The various financial and technical problems which have been manifested inside the company are all as a result of the poor management of the company which has been neglected by all the directors in place. In the case of the OHS company, I would advise Emma to do a thorough audit of the books of account on all the business transaction that the company has engaged in .This is crucial in order to identify the root cause of the problem the OHS company is facing. This is a necessity provided by the corporations act on the part of accountability on all managerial problems the company may be facing.
The accounting sector basically made losses due to the site malfunctioning therefore not covering all their clients effectively. This having been a result of negligence on Satish side who is the director in charge of the companies' technological side. He failed to highlight the company’s position by giving Des false information which involved the company to enter a $10 000 contract in order to redeem its glory or reputation to the various stakeholders . I would advise Emma as the director in charge of the accounts to conform to the corporation acts by having to repay the debts at hand using various mechanisms available to solve this problem. An administrator must be appointed in order to take control of the company in order to maximize Its chances of its continued existence. Winding up must be effected as it is mandatory by any acts of the court and lastly there should be receivership which will sum up this process of rectifying the errors. Mainly in cases of insolvency under section 588G of the corporations act 2001 (Cth) it provides that a director may be legally held responsible for the debts incurred by the company in the event of its insolvency. If in any occasion the director contravenes the section 588G and therefore the company incurs a debt. There is reasonable grounds or suspecting company is insolvent or would eventually become insolvent. By contravening of this act it may lead to civil and criminal liability on the director.
Ying who is the director of the support Pty company was to troubleshoot the system by Satish employing his company to undertake the task. This was also the company which was responsible of acts of unaccountability on their part resulting to insolvency. The bad management from the side of Ying has also some serious implications in his company future dealings with him being a director this is because he performed unprofessionally. Emma would have considered to sell the company to Ying who was a potential buyer and had an interest in buying the company. Ying is prohibited by the corporate law he cannot be legally fit to buy the company. This is because he as the manager who led or was part of insolvency cannot be permitted by corporation law to buy the company .Emma will therefore have to deal with the idea of employing an administrator to help her solve the company's problem. The directors' duties to solve the insolvency issues arise due to their accountability to address the various departments effectively.
Part two
Appointment of the director for No-Tax Agents Pty Ltd
Mr Shifty, Mr Avoider and Ms Marginal all have different track records in their previous jobs or various experiences in their career lives. This experience will play a major role in the determining the suitable director and secretary of the new company the (No-Tax Agents Pty Ltd) being formed.Mr Shifty who poses a good candidate for this position suggested that his family company to be appointed as the director and secretary. He does not want to be appointed as either a director or the secretary. He also has a good track record basing on how he solved the issues regarding the insolvency problems associated in his family company time and again. Ms Avoider on the other hand is a criminal convict because of an act of falsifying a previous accounting information to meet various needs. She also has five more months for her to complete her imprisonment period. This track record will do the company disfavor by acting as a liability to the company if she is employed as the director. According to the corporations law it is forbidden for an individual with a criminal record to head a reputable institution .Therefore it will be very inappropriate to Ms Avoider to be selected as on that position basing on her past practices and experiences which are unsupported by the corporation laws.
Mr Marginal on his part is seventy two years old and also suffering from a deadly disease Alhemizer. This Is a major setback for him. This will inconvenience him not to be able to effectively eradicate the company operations due to the timely ailment which can not allow him to chair meetings as the corporation law requires .Mr Marginal also cannot effectively manage his estate effectively. He went further to appoint a trustee to manage it for him. This is a clear indication that he cannot effectively cater for the business operations .According to corporate law it regulates the appointment of top directors on various issues also including issues of health and attendance .Therefore Ms Marginal is automatically locked out from this position.
The best candidate according to the corporate laws as stipulated to who best qualifies for this position is Mr Shifty who had in the past had a good track record. He has also employed the required practices like appointing a liquidator on instances of insolvency in his family company. Therefore it will be highly recommended for him in that Director position due to the impressive track record and the element of effective ways of solving managerial company issues.
In both the two cases it is highly noted on the major role the corporation laws impacts on various business enterprises and also the decisions it affects in various activities involved in the day to day activities. Corporation law can therefore be used effectively in governing of various corporate ventures to ensure their success and legal confirmation of the law governing them
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