If a director allows a company to continue to trade indefinitely and the company is placed into liquidation, what are the potential liabilities for a director and how are these determined by the Courts?
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If a director allows a company to continue to trade indefinitely and the company is placed into liquidation, what are the potential liabilities for a director and how are these determined by the Courts?

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- If a member of a limited liability company dissociates from the firm in violation of the operating agreement, the member can be held liable for any loss to the business resulting from the withdrawal. True FalseApex Hospital is in need of major renovation of its electrical system. One of Apex’s governing board members, Willy Watt, is an electrical contractor who is a partial owner of an electrical restoration company. He would like to bid on the project. May he? If he does, what must he do? What must the governing board do? Is there a problem with Mr. Watt’s fiduciary duty? Is there a problem with the governing board’s fiduciary duty? Recommend the best steps that Apex Hospital should follow.Josue is part of a business entity in which the parties are protected against personal liability for business debts. What type of business entity is this? Is it able to be registered as a brokerage? It is an LLC. It may be registered as a brokerage. It is an LLC. It may NOT be registered as a brokerage. It is a corporation. It may be registered as a brokerage. It is a corporation. It may NOT be registered as a brokerage.
- . Explain what constitutes an act of bankruptcy according to canadian lawA limited partner is responsible for any debts of the partnership, regardless of whether he or she was directly involved in the transaction that created the debt.;True or FalseAfter researching Best Buy common stock, Sally Wang is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 550 shares of Best Buy. At the time of the sale, a share of common stock had a value of $148. Three months later, Best Buy is selling for $140 a share, and Sally instructs her broker to cover her short transaction. Total commissions to buy and sell the stock were $58. What is her profit for this short transaction?
- What would be the priority of the claims as to the distribution of assets in a liquidation under Chapter 7 of the Bankruptcy Act? 1 is the highest claim, 5 is the lowest. (1) Trustees' costs to administer and operate the firm. (2) Common stockholders. (3) General, or unsecured, creditors. (4) Secured creditors, who have a claim to the proceeds from the sale of specific property pledged to secure a loan. (5) Taxes due to federal and state governments. Oa. 4, 1, 5, 3, 2 Ob. 1, 5, 4, 3, 2 Oc. 1, 4, 3, 5, 2 Od. 5, 1, 4, 2, 3 Oe. 5, 4, 1, 3, 2‘A holder in due course gets a better title free from equities’. Explain the statement and discuss the various privileges of a holder in due course.Sapphire Sapphire PLC (Sapphire) is a listed company on the London Stock Exchange and as such is required to apply the UK Corporate Governance Code (2018). The majority of shares in Sapphire are owned by Bob Diamond who is also the Chief Executive of Sapphire. However, 40% of shares are owned by other investors, including institutional investors. Bob has made no secret of his desire to sell all his shares within the next five years and retire ‘to a desert island’. Sapphire has an audit committee but no other Board level committees as Bob doesn’t consider them necessary to run ‘his company’. He determines the remuneration packages for all the executive directors and senior management including himself. The constitution and membership of a Sapphire’s audit committee is as follows: • Member A – Chair of the Committee who, before retirement two years ago was the Finance Director of the company • Member B – An independent member with no financial experience who joined the committee one year…
- Discuss the legal responsibilities and liabilities of directors and officers in a corporation. What fiduciary duties do they owe to the company and its shareholders? What are the potential legal consequences for breaching these duties?Describe the differences between a sole proprietorship, a partnership, and a corporation as business entities, including their advantages and disadvantages from a legal perspective.Virgin Financial Services Pty Ltd (Virgin) is a recently incorporated company that you assisted Virginia and Richard in establishing to run a financial planning business. The company does not have their own Australian Financial Services license but is a corporate authorised representative of MLC Ltd. The directors of the Virgin are: Virginia (the MD) and Richard Both have had several years of financial planning and accounting experiences and in the last 4 years they both focused on being financial advisers. Richard is aware that taxation is an important issue in financial planning and has become registered as a recognised tax adviser as well. Both have a good understanding of the legal requirements involved in advising clients. They were individual clients of the firm for many years and now that they have started up a new business they come to you for advice on the following issues: Recently the Government established a review on the quality of advice called the Quality of Advice…