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Remedies for breach of contract
Structure/design of organizations
Remedies for breach of contract
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The three main business organisation structures considered by Steve and Wonder are partnerships, trusts and companies. In order to understand the key differences between the three and to put forward a recommendation for the most apt structure, it is essential to grasp the basic definition of each . A partnership is an association of two or more people who typically know and trust each other and therefore come together to set up and carry on a business. The partners have an equal control over the company’s affairs and typically contribute an equal capital amount. Incomes and losses are also equally shared . A trust is an obligation given to an appointed person, the trustee, to hold the assets and property of the business on behalf of the others who are termed as beneficiaries. The trustee could be a company, sole trader, partnership of individual and has the discretion over running and managing the trust including matters such as investments, debt, and income generation. The beneficiaries are all those who receive the income or incur expenses. A limited liability company is a complex business structure whereby it is a separate legal identity, separate from the partners. The company is owned by the shareholders and managed by the directors. The recommendation for Steve and Wonder as the best-fit organizational plan for their business is to set up a limited liability company. The case for this recommendation is built through the factors discussed below. The first factor is that of risk. A company is a separate legal entity. This means that it has its own debts. In case of a membership, there is no limit to the liability of the partners and they may have to be personally responsible to pay off any outstanding debt towards the busines... ... middle of paper ... ...s committed by Wonder arises a conflict of interest and a breach of the contract made with the company. Wonder failed to meet the responsibilities when he did not inform Steve about his dealings. A director must not let his personal interests and company duties and responsibilities conflict. This is a fundamental rule of Equity (Phipps-V-Boardman (1967)2AC123). A director may not apply company property either for his personal interests or for the benefit of any other person without the authority of the company. As Wonder breached the contract and did not fulfil the duties and responsibilities as a Director of the company, Steve can succeed under the corporations Act 2001 (cth) and the case law in having the contract relating to the bank loan (mortgage) declared as invalid. Steve can take legal actions against Wonder as he was liable for the breach of conract.
Ans. 6 The Court can overrule the decision for terminating Paul as he was not involved in the scheme. Due to his honesty he even admitted to be aware of the scheme. Moreover, no fraud was found in his facility and he should be held responsible for the warehouse for which he is in charge. Furthermore, higher management should be held responsible for not keeping an eye on the activities of supervisors at different locations.
Partnership – “A legal entity formed by two or more co-owners to operate a business for profit.” (Longenecker, Petty, Palich, Hoy, Pg. 202) In a partnership, the advantage for the owners is the capability to reduce the workload and the financial burden, especially if each partner has management skills that enhances the business. The disadvantages of a partnership such as personal conflicts and leadership expectations, therefore this organizational form should only be chosen once all other options have been considered.
The Organisation structure of a company addresses the fact that every organisation has specific units that are responsible for different roles and actions in the organisation and that no department within the organisation stands alone, they are intertwined. The organisational chart or structure should be designed to divide up the work load, responsibilities and roles to be done
Organisations are structured in a variety of ways, depending on many aspects including their size, objectives, culture and management style. It is important to look at these aspects as these influence the design and the structure of the business.
Not all strategies “fit” within the companies activities, some are hit and misses such as when Stewart placed Charles Koppelman to the board, where “he became chairman of the board in 2005, where he negotiated a paid consulting arrangement for himself. He was viewed as enabling Stewart’s self-regard as much as tending to th...
Case Introduction 2 The breach of duties by directors 2 Case Analysis 4 Directors’ duty of care and its scope 4 Test for the breach of care and diligence 4 Impacts on Australian corporation law 5 Conclusion 6 References 6 Case Introduction The aim of this report is to research on the case ASIC v Cassimatis (No. 8) [2016] FCA 1023 involving breach of company directors’ duties under the Corporations Act 2001 (CA).
In order for one to evaluate and identify with the diverse business structures, he/she must be aware of the meaning and standards that makes that structure. Various businesses functions in different ways as the world is full of technology and new structures, company cultures and new ways in which companies are run. In order to fully grasp the concepts of Organizational structure and culture in the movies, I will use the Movie Up in the Air and The Devil Wear Prada movies to analyze a business scenario from them.
The Different Ways Organizations Can Be Structured and Operated There are four major ways a company - organization can be structured and operate. P.C.G (o) Ltd I would dare say that is structured and operates with the functional structure. In order to make it clear and understandable I am analyzing here below the four ways that organizations can structure and operate. We will observe that all four structures have there advantages and disadvantages. In order also to assist you understand better the differences of the four ways that organizations can be structured see in Page 4 & 5 Figures 1,2,3 which are the layout of the organization charts for each structure: 1.
As a consequence of the separate legal entity and limited liability doctrines within the UK’s unitary based system, company law had to develop responses to the ‘agency costs’ that arose. The central response is directors’ duties; these are owed by the directors to the company and operate as a counterbalance to the vast scope of powers given to the board. The benefit of the unitary board system is reflected in the efficiency gains it brings, however the disadvantage is clear, the directors may act to further their own interests to the detriment of the company. It is evident within executive remuneration that directors are placed in a stark conflict of interest position in that they may disproportionately reward themselves. The counterbalance to this concern is S175 Companies Act 2006 (CA 2006) this acts to prevent certain conflicts arising and punishes directors who find themselves in this position. Furthermore, there are specific provisions within the CA 2006 that empower third parties such as shareholders to influence directors’ remuneration.
The members have been generating client bases in their own related businesses since 1999, previously, the members enjoyed mild success in their own businesses, and have been limited only by capital and available time.
Organizational design and structure would be one of the most important aspects of a successful organization in Jerusha’s opinion. Organizations who have well established designs and structures tend to be more successful than those whose designs and structures are vague. Over the last six weeks, we have learned useful information as it appl...
The tasks to create a company start with deciding what problem needs solving for a specific market, then choosing a business structure, performing direct market research, strategy development, determining how to finance the company and most importantly, who will be on the founding team. Businesses with multiple founders are more successful; entrepreneurship is a team effort. (Aulet, 2013). Finding co-founders with similar values is a key component to company success. From there, the founders set rules of engagement frameworks between them to act as a guidepost in how to work wi...
Different organizational structures have also been taught in the class; There are three types of organizational structures in which the authority of the project manager
A corporation is by law recognized as a separate legal person. Since a partner in a general partnership represents an agent of the business, when a change happens about partners, it in most times differentiates the partnership. On the other hand, a corporation is not dependent on the life of shareholders, directors, and officers, and will not be affected by changes in, deaths and retirement of its members since it is by law recognized as a separate ‘person’. Furthermore, the day-to-day business is running unaffected. As a separate person, a company can enter into transaction i... ...
These types of organisation structures should not be seen as sequential, but as a range of alternatives which are the subject of deliberate management choice because organisations are set up in specific ways to accomplish different goals therefore the structure of an organisation can help or hinder a business objectives.