Read the below question and retum your answer to Moodle by 12:45PM HUB Utilities Ltd (HUB)...

 

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Read the below question and retum your answer to Moodle by 12:45PM HUB Utilities Ltd (HUB) is a construction management company that is listed on the ASX. HUB has 3 directors; Mr Short, Mrs Lee and Dr Wittless (who holds a PhD in "construction management policy"). At a directors' meeting in March 2020, a proposal to purchase a small construction management company is discussed. The proposal is accompanied by a report detailing the financial status of a company called Tricky Business Pty Ltd. Only 2 of 3 directors attend this meeting. Mr Short does not attend the meeting (he has actually not attended any of the past 5 Board meetings) During the meeting, Dr Wittless glances over the financial report for Tricky Business Pty Ltd and comments tha it "looks all good". Mrs Lee does not read the financial report for Tricky Business Pty Ltd, considering the opinion of Dr Wittless to be entirely reliable. Together, Mrs Lee and Dr Wittless approve the proposal for HUB to purchase Tricky Business Pty Ltd. Not long after the purchase, it becomes apparent that Tricky Business Pty Ltd is financially unsound and that purchasing the company has very bad consêquences for HUB. Mr Short is angry when he finds out about the deal but Mrs Lee and Dr Wittless tell him that "he has no right to be upset since he has not been active in decision- making for a very long time". Answer the below questions using LR.A.C. structure and with reference to the relevant law: Have Mr Short, Mrs Lee and Dr Wittless breached their directors duties? If Mr Short, Mrs Lee and Dr Wittless have breached their duties, what consequences are likely to follow? Read the below question and retum your answer to Moodle by 12:45PM HUB Utilities Ltd (HUB) is a construction management company that is listed on the ASX. HUB has 3 directors; Mr Short, Mrs Lee and Dr Wittless (who holds a PhD in "construction management policy"). At a directors' meeting in March 2020, a proposal to purchase a small construction management company is discussed. The proposal is accompanied by a report detailing the financial status of a company called Tricky Business Pty Ltd. Only 2 of 3 directors attend this meeting. Mr Short does not attend the meeting (he has actually not attended any of the past 5 Board meetings) During the meeting, Dr Wittless glances over the financial report for Tricky Business Pty Ltd and comments tha it "looks all good". Mrs Lee does not read the financial report for Tricky Business Pty Ltd, considering the opinion of Dr Wittless to be entirely reliable. Together, Mrs Lee and Dr Wittless approve the proposal for HUB to purchase Tricky Business Pty Ltd. Not long after the purchase, it becomes apparent that Tricky Business Pty Ltd is financially unsound and that purchasing the company has very bad consêquences for HUB. Mr Short is angry when he finds out about the deal but Mrs Lee and Dr Wittless tell him that "he has no right to be upset since he has not been active in decision- making for a very long time". Answer the below questions using LR.A.C. structure and with reference to the relevant law: Have Mr Short, Mrs Lee and Dr Wittless breached their directors duties? If Mr Short, Mrs Lee and Dr Wittless have breached their duties, what consequences are likely to follow?

Answer rating: 100% (QA)

Facts of the Case HUB Utilities Limited HUB purchased a small construction management company and later on the company is not worthy to purchase Issue ... View the full answer