Explain Corporate Governance with respect to role of nominee directors in the following case - Searches...
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Explain Corporate Governance with respect to role of nominee directors in the following case - Searches related to strict licensing conditions apply for the operation of tourism enterprises in Arnhem land in the northern territory. in 2012, Antipodean tours Itd wanted to extend operations in this area. to enhance its chances of gaining the necessary licenses, it incorporated a subsidiary called Arnhem land antipodean tours Pvt Itd with a 49% shareholding vested in people of indigenous decent from Arnhem land. it appointed three of the five directors to the board as its nominees. in November 2019, the restrictions on tourism are lifted and the licensing requirements for operations in Arnhem land falls away. antipodean tours Itd no longer needs to work through a subsidiary to operate in the area. they no longer need the contacts of the two indigenous directors appointed to the board of Arnhem land antipodean tours Pvt, Itd, because they have built their own network it also withdraws all systems and marketing support to Arnhem land antipodean tours Pyt. Itd. when the two indigenous directors want to Institute action for breach of contract, the nominee directors refuse to take any legal action against antipodean tours Itd. it seems that the liquidation of Arnhem land antipodean tours Pyt. Itd is imminent. consider whether the nominee directors breached any of their general or statutory law duties Explain Corporate Governance with respect to role of nominee directors in the following case - Searches related to strict licensing conditions apply for the operation of tourism enterprises in Arnhem land in the northern territory. in 2012, Antipodean tours Itd wanted to extend operations in this area. to enhance its chances of gaining the necessary licenses, it incorporated a subsidiary called Arnhem land antipodean tours Pvt Itd with a 49% shareholding vested in people of indigenous decent from Arnhem land. it appointed three of the five directors to the board as its nominees. in November 2019, the restrictions on tourism are lifted and the licensing requirements for operations in Arnhem land falls away. antipodean tours Itd no longer needs to work through a subsidiary to operate in the area. they no longer need the contacts of the two indigenous directors appointed to the board of Arnhem land antipodean tours Pvt, Itd, because they have built their own network it also withdraws all systems and marketing support to Arnhem land antipodean tours Pyt. Itd. when the two indigenous directors want to Institute action for breach of contract, the nominee directors refuse to take any legal action against antipodean tours Itd. it seems that the liquidation of Arnhem land antipodean tours Pyt. Itd is imminent. consider whether the nominee directors breached any of their general or statutory law duties
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A nominee director is an individual nominated by an institution including banks and financial instit... View the full answer
Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
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