Company Law Assignment Essay Example | Topics and Well Written Essays - 1500 words

political party Law Assignment - Essay ExampleNon observance of this provision impart attract both o.k. and imprisonment. (Walton & Henderson 200517). Under s 195(2), an implicated director of a public company may pick out and withal present in the posting meeting provided if the board passes a dissolver before such content is voted upon The nature and order of the directors interest in that business line are taken into quotation by the board The board resolution should mention that directors voting for the interested resolution are satisfied that the directors interest should not bar the director from voting or considering on the business matter. Directors of public company are now accountable by s 191. The Australian Securities and Investment Commission (ASIC) can under s 196 may order that a director with a material personal interest as defined in s 195(1) can present and vote on such interested matters if there is no proper quorum is available and due to urgency of th e income tax return or due to some other compelling reason, that board can approve the same disdain the fact of boards conflict of interest instead of passing in Annual worldwide Meeting. (Cassidy 2005244). Since, the company has no governance, replaceable rule in the Act leave be applicable. In The cigarette v District Council of Victor Harbour , Ex Parte Costain Australia Ltd 1983 54 SASR 188 at 190, it was held that when a directors interest is both material and personal ,such director is prohibited from attending and voting at the board meeting. In the Bell Group Limited (in liq) v Westpac Banking Corporation (2008) 70 ACSR I, it was held that an interest which has the potential to get around the voting by a director would be regarded as material interest. In Grand Enterprises Pty Ltd v Aurium Resources Ltd (2009) 256 ALR I , it was observed that the term material implied that kind of interest that requires to be of some value or substance instead of just a slight inter est. (ASIC 201110). It is advisable that Betty should inform her interest in the business to the all the directors and should desist from attending the board meeting and voting on the resolution in which she is interested as held in Queen v District Council of Victor Harbour except where her participation will be of more advantageous to the company due to her expert knowledge on the subject. Answer to dubiety B (a) (ii) As regards to an interested matter by a director that is being considered by the board, directors who do not have a material personal interest in such transaction will be known as non-interested directors. A non-interested director should, when making a decision to offer pecuniary advantages to a related party To conduct proper investigation of management and should get proper advise, to the magnitude needed about the interested proposal. He should appraise the information provided to him independently As held in HIH insurance Ltd and HIH Casualty and General Ins urance Ltd , ASIC v Adler and others (2002) 41 ACSR , non-interested director should exercise special caution with painstaking concern to make sure that required corporate approval are received . For passing a resolution in which a director is interested, there should be adequate quorum of non-interested directors as stipulated in the constitution of the company or Corporation Act. In the absence of any valid quorum of non-int