Promoter of a company, their duties and liabilities how are they remunerated? 1. Introduction: The Companies Ordinance 1984 does not define the word 'promoter' any how attempts have been made in various judicial decisions. The persons who take initiative in the formation of the company are called promoters of the company. The prepare certain legal document and take all necessary steps necessary for the registration of the company. They convince responsible persons to act as first director of the company. Rights of the promoters: (i) Right to receive the preliminary expenses. (ii) Right to receive remuneration for their services. (iii) Right to receive the proportionate money from promoters. 2. Case law definition: Twyeross vs. Grant 1877 2 …show more content…
Preparation of documents: Promoter prepare essential documents for the formation of the company. V. Submission of documents: Promoters submit necessary document for the incorporation of the company. VI. Payment of expenses: Promoters pay preliminary expenses at the time of registration of the company. VII. Arrangement of business: Promoters make arrangement for the office, factory, machinery, staff, allotment of the shares and debenture. They take all steps for obtaining the certificate of commencement of the businesses. VIII. Decision of amount of capital: Promtors decide the amount of necessary capital and the necessary means to raise it. 7. Liabilities of promoter: I. Promoter's liability to disclose: The promoter of the company are under an obligation to disclose fully all material facts relating to the formation of the company for, the relationship between the promoters and a company is of fiduciary character. (i) Conditions: (a) A disclosure must be actual and express. (b) It must be made to a body of persons acting on the behalf of the persons. (c) Body of persons must be in position who can exercise independent judgment. II. Promoter's liability for secret profit: A promoter is answerable for any secret profit that he may have made during the formation of the
...are accountable to a board of directors and shareholders and publish annual reports that are public record so to make sure there financial standards are on the up and up.
William Evan and Edward Freeman, in their essay “A Stakeholder Theory of the Modern Corporation,” argue that the objective of a company and its managers is not only to maximize profit for its owners and stockholders, but also to balance the benefits received or losses incurred by other stakeholders—employees, suppliers, customers, and the local community, all of whom may be influenced by company decisions. As the owner of MSO, your aim is ostensibly to maximize profits for yourself, but unlike most other indicted CEOs, you have not tried to obtain personal gains at the expense of the stakeholders of your enterprise. Rather, the charges that have been brought against you are for your dealings with another company; in this day and age where investors bemoan the lack of ethics of CEOs who use the power of their position in the boardroom to achieve selfish gains at the expense of their own company and its stakeholders, the charges of insider t...
Evolving since the 1980’s, case management, an essential part of quality assurance programs, promotes excellence and efficiency in consumer health care, while conserving costs for health care organizations. Effective case managers answer the demands of changing health in promoting and facilitating a patient’s progression of care (Scott 2014).
Public relations are the practice of distributing the information between an organisation or individual and the public. The aim of PR practitioners by the client is often is to persuade stakeholders, partners, employees, investors and most importantly, the public. The practitioner’s communication stance is reaching the individuals or organisation ultimate goal. However many can examine and scrutinize public relations ethics to assert a PR problem within the industry. All PR organisations and individuals have a code of ethics of which the professionals are expected to follow. Regardless of these guidelines, ethics in individual practices seem to prove continuous and consistent violation worldwide. The James Hardie Industry, a company that is known for knowingly using products that caused thousands of people throughout Australia to grow to become sick and even resulting in death, from its products that produced massive profits is a prime example of the PR problem. However ethical communication and critically reflective practices are procedures that benefit both the public and the organisation when use correctly, opposite to the James Hardie case.
Spokane Industries has contracted Franklin Electronics for an 18 month product development contract. Franklin Electronics is new to using project management methodologies and has not been exposed to earned value management methodologies. Even though Franklin and Spokane have worked together in the past, they have mainly used fixed-price contracts with little to no stipulations. For this project, Spokane Industries is requiring Franklin Electronics to use formalized project management methodologies, earned value cost schedules, and schedules for reports and meetings. Since Franklin Electronics had no experience with earned value management, the cost accounting group was trained in the methodology in order to bid for the project.
According to the Case Management Society of America, case management is "a collaborative process of assessment, planning, facilitation, care coordination, evaluation, and advocacy for options and services to meet an individual's and family's comprehensive health needs through communication and available resources to promote quality, cost effective outcomes" (Case Management Society of America [CMSA], 2010). As a method, case management has moved to the forefront of social work practice. The social work profession, along with other fields of study, recognizes the difficulty of locating and accessing comprehensive services to meet needs. Therefore, case managers work with these
According to the Panera Bread website (2011), the company mission is simply “A loaf of bread in every arm.” (para 7).
The registration statement contains information about the offering itself along with other information about the company, such as the company's financial statements, management background, any legal issues the company may be involved in, insider holdings, and where the raised capital will be used within the company.
CEO Kenneth Lay’s ambition for ENRON a company he had helped form went beyond the business of piping gas. Enron went to become the largest natural gas merchant in North America and the United Kingdom. But the reality is, this company business model never worked. This was a company that was so desperate to win Wall Street 's respect that it kept it stocks shares prices going up despite the losses it was incurring in order for executives to keep lining their own pockets. Over the course of this Case Assignment, I will identify the examples of financial reporting misconduct, I will explain the deontological as well as a utilitarian ethical perspective and lastly I will identify the stakeholders likely to be affected by that misconduct.
Being a leader means you guide others to achieve a goal and complete tasks. A leader will use communication strategies to convey what is expected from employees such as priorities or timelines. The communication strategies that will be discussed are motivation of employees, listening, showing confidence and having work knowledge. I will focus on a virtual office setting since I work remotely. Also a case study analysis will discuss what one leader can do differently to effectively lead his staff.
The Principle of Separate Corporate Personality The principle of separate corporate personality has been firmly established in the common law since the decision in the case of Salomon v Salomon & Co Ltd[1], whereby a corporation has a separate legal personality, rights and obligations totally distinct from those of its shareholders. Legislation and courts nevertheless sometimes "pierce the corporate veil" so as to hold the shareholders personally liable for the liabilities of the corporation. Courts may also "lift the corporate veil", in the conflict of laws in order to determine who actually controls the corporation, and thus to ascertain the corporation's true contacts, and closest and most real connection. Throughout the course of this assignment I will begin by explaining the concept of legal personality and describe the veil of incorporation. I will give examples of when the veil of incorporation can be lifted by the courts and statuary provisions such as s.24 CA 1985 and incorporate the varying views of judges as to when the veil can be lifted.
Moreover, the auditors had looked out the attitude or rationalisation of the company to justify the fraudulent action. The top management may behalf on their own interest but not the behalf of shareholders to maintain or raise the stock price of the company. In Cendant case, the CUC’s management allegedly inflated earnings by recording increasing revenue and reducing expense to meet expectation.
their products/services. They are given a product/service and are required to use their best creative effort to make this product desirable to the intended audience (Krugman 37).
The Role of the Directors in a Company is of a paramount importance in the discourse of the proper running of the company. Directors are the spirit of the company .The company is merely a legal entity, governed by its directors. These directors have certain duties and responsibilities. These are mainly governed by the Corporation Act, 2001. Section 198A (1) of The Corporations Act, 2001(The Corporations Act 2001 s 198A (1)), clearly states that, ‘The business of a company is to be managed by or under the direction of the directors’.
The owner has the ability to grow or contact its operation at will with no need to consult with a boss or board of directors