Perfect Model Essay On Law

The director owes a duty of care to act in a diligent manner that pertains to the affairs of the company. It is the duty of directors to avail themselves for meetings as an obligation towards the successful running of the enterprise. Neglecting meetings and failure to observe due care while passing resolutions that may cause the company to experience issues may lead to the director being held personally and wholly liable for the damages arising. A director who knowingly votes for an illegal action will be held personally accountable for their actions. The director’s duty of care is restricted to the confines of his/her legal obligations and to act in the best interest of the company as a prudent person would have acted. The duty of care is not absolute as the director may be held responsible for any actions that are contrary to his or her duty of care to the company. A director should not be prevented from having interests in other companies but should fully disclose interests held in such entities. Potential areas of conflict can be avoided through full disclosure to the boards to avoid potential issues.
The Webster case provides various lessons that arise from circumstances that involved the partnership. Partnerships need to practice careful drafting to prevent similar disputes to those that arose from the Webster vs. Thomas after forming a partnership agreement and observance of the terms of the partnership agreement. Negligence from the surviving partners of Clyde Webster can be partly blamed for the problems that arose. Failure by the surviving partners of Webster to vote on dissolution or continuity of the partnership resulted in the complaints. Additionally, terms in the partnership agreement must be followed survivors of a deceased partner. Another important lesson learned is that court orders should be acted upon or effected once they are passed to avoid the occurrence of trials that may change initial court rulings.