Explain Corporate Governance with respect to role of nominee directors in the following case - Searches...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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
Expert Answer:
Answer rating: 100% (QA)
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
Posted Date:
Students also viewed these accounting questions
-
Tracy is unsure how much to charge for the cupcakes. When she was making the cupcakes by herself and only rented a small storefront that was only open on weekends, she calculated the cost per cupcake...
-
In Figure particles 1 and 2 are fixed in place on an x axis, at a separation of L = 8.00cm. Their charges are q1 = + e and q2 = ?? 27e.Particle 3 with charge q3 = + 4e is to be placed on the line...
-
Corporate governance processes are universal, with a clear set of best practices available to all organizations. Do you agree with this statement? Why or why not?
-
An asset with a first cost of $9000 is depreciated by MACRS over a 5-year recovery period. The CFBT is estimated at $10,000 for the first 4 years and $5000 thereafter as long as the asset is...
-
United Oil Company is attempting to develop a reasonably priced unleaded gasoline that will deliver higher gasoline mileages than can be achieved by its current unleaded gasolines. As part of its...
-
A big pharmaceutical company, DRIg, has just announced a potential cure for cancer. The stock price increased from $1 to $137 in one day. A friend calls to tell you that he owns DRIg. You proudly...
-
The scatter chart in the following figure was created using sample data for profits and market capitalizations from a sample of firms in the Fortune 500. a. Discuss what the scatter chart indicates...
-
Diversified Investor Group is opening an office in Boise. Fixed monthly costs are office rent ($8,100), depreciation on office furniture ($1,600), utilities ($2,500), special telephone lines...
-
Year 1 January 5 Selk purchased 50,000 shares (20% of total) of Kildaire's common stock for $1,500,000. October 23 Kildaire declared and paid a cash dividend of $2.40 per share. December 31...
-
Cheapest Car Rental rents cars at the Chicago airport. The car rental market consists of two segments: the short-term segment, which rents for an average of 0.5 week, and the medium-term segment,...
-
The accounting department of Delta Sales Company receives an instrument that states: March 16, 2019. Thirty days after date, I promise to pay to the order of cash, $700 (seven hundred and 00/100...
-
What are the seven areas in which the management of a company has to prepare itself before entering contract negotiations with a union? Discuss the effect of a union on wages and productivity.
-
1. How is purchasing directly and indirectly involved in the control of a firm's inventory investment? 2. What are three types of performance benchmarking? 3. Why would a firm want to measure...
-
How do the best leaders/managers impact their teams and shapeorganizational culture?
-
Analyzing the role of HR planning in mergers and acquisitions. ( provide Realistic Examples and reference ) Note :- 800-900 words
-
discuss how you would evaluate the effectiveness of your approach towards organizational leadership
-
Want this type of e-poster template for Alaska country. + WELCOME TO FINLAND HAPPIEST COUNTRY Let the new adventures begin. NORTHERN SAUNAS LIGHTS RUISLEIPA
-
Differentiate the following terms/concepts: a. Personality types and money attitudes b. Planners and avoiders c. Moderating and adapting to biases d. "Perfectible judges" and "incorrigible judges"
-
Describe the two costs of controlling quality and the two costs of failing to control quality.
-
Overhead costs are typically identified as belonging to one of four categories. List and briefly describe each category.
-
What is target pricing, and when would it be appropriate to use it?
-
What are the numbers of observations in each of the five categories that rate the respondents level of job satisfaction?
-
Which of the seven store departments had the most customer visits, and what was this number?
-
What proportion of the 26,280 individuals are in each of the five categories?
Study smarter with the SolutionInn App